A Letter to the Editor of The Globe and Mail

To the Editor:

Barrie McKenna cannot understand that the International Monetary Fund is happy not to lend ("Note to IMF: Looming Irrelevance Means It's Time To Fish Or Cut Bait", March 14). Why? Because when nations aren't borrowing from the IMF, it is good news: They are not facing a crisis. Moreover, the fact that nations aren't borrowing does not affect the fund's ability to lend in the future, as Mr. McKenna thinks. Our lending comes from the resources provided by our member countries, not from the income derived from previous loans.

Mr. McKenna also doesn't seem to grasp what the IMF does in area of crisis prevention. Since the crises of the late 1990s, we have worked closely with our member countries to help reduce the recurrence of such devastating economic downturns. Doesn't the long period of stability enjoyed by the international community suggest that we just may just be doing something right? These policy initiatives may be "bland" to a newspaper columnist, but that doesn't mean they are unimportant for the world economy.

That's also true of the reform effort currently underway at the IMF. Reform does not come in headline-grabbing ideas that have little chance of being turned into action. They come from detailed analysis, careful planning and the consensus-building that Mr. McKenna derides.

We believe the result will be a stronger and more prosperous global economy. If that also involves radical change, that's fine. But if the conclusion is that greater stability will be grounded in "incremental reforms," then I guess Mr. McKenna will just have to find his excitement elsewhere.

Very truly yours,

Thomas C. Dawson
Director
External Relations Department