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Resident Representative Office in Guinea Guinea and the IMF  |
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Press Statement Ladies and Gentlemen, members of the media, my name is Dennis Jones and I am the resident representative for the International Monetary Fund in Guinea, since July 8, 2003. The role of the resident representative is first of all to be an advisor to the government on matters of economic policy. But, the resident representative should also know the country and try to explain the work of the IMF. Therefore, I want to indicate clearly that my door is open to every member of the media, whether local or international, to allow me to do both of these things. I hope that you are already aware of the information about the relations between Guinea and the IMF that is on the IMF's website (www.imf.org). Recently, I created a website for the resident mission in Guinea (www.imf.org/conakry), where I hope to include material pertinent to this country, for example, concerning good governance. However, I should explain that I can only include there material produced by the IMF or related to my activities (such as oral remarks I make or things that I write). As regards, the relations between Guinea and the IMF, we continue to have a fruitful dialogue. As you know, there was an IMF mission in Guinea during April-May 2003, to conduct the Article IV consultation, which took place jointly with a World Bank mission (which is the common practice in Guinea). We discussed frankly the economic situation with members of the government's economic team and with the governor of the central bank. The conclusions of this mission have been published, as regards the fiscal deficit and its financing by the banking system, the growth rate of the money supply, the increase in the rate of inflation, and the pressures in the foreign exchange market (which is clear if one looks at the gap between the official rate and the parallel rate). Guinea is truly a country with an enormous potential, which has known success at times, but this has not been durable. And recently, the country has passed through a very difficult period. One part of this is the result of exogenous factors (such as the decline in the international price of mineral products, and problems in certain neighboring countries—which have increased spending on security). But another part represents the absence of a consistent and firm economic policy, a lack of control in certain key areas, and slow progress with certain structural reforms. We continue to encourage the Guinean authorities to pursue a sustainable fiscal policy, notably to increase non mining revenue and control spending. On the other hand, monetary policy should be consistent with the achievement of a reduction in the inflation rate and attaining a realistic official exchange rate. The IMF's Executive Board discussed the staff report for Guinea on July 16, and the staff report and the conclusions of the Executive Directors have been published. * * * * * * * You may also be interested in some recent remarks by the Managing Director of the IMF, Mr. Kohler. The MD believes that there is much progress in Africa. He stated that : « In countries that do not face civil strife, there is ample evidence that prudent macroeconomic policies underpin higher growth rates. » Of course this progress is not enough. He added: « African countries face four main challenges, which a number of the continent's nations are already addressing successfully: • First, further progress is needed to strengthen governance, build sound government institutions, and fight corruption. • Second, there is a need to sustain and build upon Africa's recent macroeconomic resilience. • Third, Africa needs private and public investment. • Fourth, there are unexploited opportunities to promote growth through regional trade and cooperation. » The MD wants to indicate clearly to the world that the IMF is aware of this progress and the challenges, and continues to support economic improvement in many African countries. He also said : « The IMF is committed to helping its African members raise growth and reduce poverty. » The text has already been published in several newspapers in African countries, for instance, in Ghana, Benin, Burkina Faso, and Guinea. |