IMF's Ahmed on modernizing the IMF for the 21st C

"A period of rapid and far-reaching change for the global economy, as the process of globalization accelerated. National and international policymakers, including the IMF, have had to adapt to keep pace with these changes. Financial crises in Asia, Russia and Latin America from the mid-1990s onwards taught us all important lessons about the impact of globalization on economic policy and about the significance of the sharp rise in private international capital flows. Some rapid reassessments were required. As a consequence of what we learned, the Fund has already made some important and far-reaching adjustments to the way it works. Among them are a revolution in transparency and a much stronger focus and belief in the value of country ownership of economic programs.

"Twenty-first century style globalization, with massive movements of capital and abrupt shifts in comparative advantage, is presenting all countries and the global institutions with new challenges. The IMF has an important role to play in fostering international economic cooperation and helping individual countries meet these challenges.

Remarks by Mr. Masood Ahmed, Director, External Relations Department, IMF at the International Policy Workshop, Organized by InWent and the German Federal Ministry for Economic Cooperation and Development, Europahaus, Stresemannstrasse 94, 10963 Berlin, Germany, October 18, 2006.

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