| IMF WANTS TO RELAUNCH TIES WITH ASIA |
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13/07/2010 - The Straits Times Tough on Asian countries in trouble but soft on European ones. The International Monetary Fund (IMF) tends to be seen by Asian nations as a lender of last resort who hands out loans with a string of tough conditions attached - tougher for some than others. The IMF was criticised for the harsh conditions it imposed on countries like Thailand, Indonesia and South Korea during the Asian financial crisis - measures which included bank closures and big public spending cuts.
The negative perception of being a euro-centric agency is what the IMF is now eager to change. It is seeking to 'relaunch' its relationship with an increasingly important region, said IMF chief Dominique Strauss-Kahn yesterday. 'For me, it is very important that the IMF become a second home for Asia. How do you make Asia feel at home? First, you got to get all in the room. Then we have to make room for Asian countries.' Mr Strauss-Kahn acknowledged the learning experience as 'painful'. 'We have learnt that what is needed to be done can be done in a less painful way. We should focus on the direct cause of crisis. The rest is the business of the government, not ours.' Deepening the fund's engagement with Asia made for a candid discussion yesterday. Featuring esteemed Asian economists such as Japan's former vice-finance minister Eisuke Sakakibara - known as 'Mr Yen' - and Tsinghua University's Li Daokui, an adviser to the People's Bank of China, it was moderated by Mr Patrick Daniel, editor-in-chief of Singapore Press Holdings' English and Malay Newspapers Division. The IMF, they noted, needs to address a long-held perception that it is an organisation dominated by European nations wielding substantial voting power. Tsinghua's Prof Li suggested that the Washington-based fund set up regional headquarters or offices, and station more staff in countries such as China. |
