Remarks by the Managing Director, Kristalina Georgieva at the Oesterreichische Nationalbank (OeNB) Conference: Bretton Woods @ 80 and Austria's IMF Membership @ 75
IMF News, March 4, 2024
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- Remarks by the Managing Director, Kristalina Georgieva at the Oesterreichische Nationalbank (OeNB) Conference: Bretton Woods @ 80 and Austria's IMF Membership @ 75
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- Published: March 4, 2024
Austria–IMF collaboration and regional engagement
- Austria has been a "strong and constructive" IMF member for 75 years and a long-standing collaborator with the Fund.
- The Joint Vienna Institute, a joint undertaking of the OeNB, the Austrian Federal Ministry of Finance, and the Fund, has provided training to public sector officials from countries in Central, Eastern and Southeastern Europe, the Caucasus, and Central Asia for more than 30 years.
- The Joint Vienna Institute:
- Strengthens economic policies through training.
- Serves as a hub for networking and peer learning among policymakers.
- Provides a platform for capacity building collaboration with partners such as the EBRD, the EIB, the OECD, the World Bank, the WTO, and the European Commission.
- Vienna hosts the IMF’s regional office for the Western Balkans, enabling close engagement with countries in the region, donors, other international institutions, and the Austrian government.
- The Vienna Initiative, created after the global financial crisis, has been central to promoting regional financial stability.
Historical role of the IMF and lessons from Bretton Woods
- The IMF was created in 1944 out of the devastation of two world wars, during a period when populism had spread and the old world order was in chaos.
- After Bretton Woods, the world experienced dramatic increases in global integration and wellbeing; the IMF played a key role by:
- Promoting the stability of the international monetary system.
- Facilitating international trade.
- Supporting sustainable economic growth and employment.
- Helping to reduce poverty.
Contemporary risks, mega-trends, and geopolitical context
- Current global risks echo past instabilities:
- Military aggression in Europe and flares of regional wars increase global risks.
- Populism and protectionism are on the rise.
- Additional long-term challenges include:
- Climate change.
- The demographic transition.
- Disruptive technologies such as AI and digital currencies.
- Despite these risks, the global economy has been "remarkable resilient" owing to strong macroeconomic fundamentals and effective policies, to which the IMF has contributed.
IMF mandate, strategic choices, and institutional priorities
- The IMF advocates for:
- Monetary cooperation and open trade.
- Strong institutions and sound policies.
- Sustainable growth that creates jobs and protects the vulnerable.
- The Fund is using its 80th anniversary to reflect on becoming "a Fund for the Future" that helps members withstand and thrive amid complex challenges.
- Ongoing and intensified IMF work includes:
- Increasing the focus of surveillance on longer-term issues to help countries build resilience against disruptive structural transformations.
- Increasing the flexibility and firepower of IMF precautionary instruments to strengthen the global financial safety net in a more shock-prone world.
- Helping low-income countries build strong institutions, including by promoting central bank independence and credible macroeconomic frameworks.
- Working with other international organizations and the creditor community to help countries address excessive debt burdens.
- Exploring ways to give all members an even greater voice to ensure the Fund remains representative of its diverse membership.
- Strategic choice framed by the Managing Director:
- Two paths: "instability and confrontation" versus "cooperation and shared prosperity."
- The IMF commits to the path of cooperation and prosperity, following the founders’ choice eight decades ago.
Key figures and dates cited
- 75 years: Austria’s IMF membership.
- 80th anniversary / 80th: anniversary of the creation of the IMF.
- More than 30 years: duration of the Joint Vienna Institute’s training activities.
- 1944: year the IMF was forged.
- Eight decades ago: reference to the founders’ decision at Bretton Woods.
Source: Remarks by the Managing Director, Kristalina Georgieva at the Oesterreichische Nationalbank (OeNB) Conference: Bretton Woods @ 80 and Austria's IMF Membership @ 75