{
  "title": "Address to Finance Ministers of the Americas and Caribbean, By Dominique Strauss-Kahn, Managing Director, International Monetary Fund",
  "publication": "IMF News, May 28, 2010",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/sp052810",
  "canonical": "https://www.imf.org/en/news/articles/2015/09/28/04/53/sp052810",
  "overlayPath": "/en/news/articles/2015/09/28/04/53/sp052810/index.md",
  "summary": "Global growth projections:",
  "authors": [
    "Dominique Strauss-Kahn"
  ],
  "publishDate": "2010-05-28",
  "sections": [
    {
      "heading": "Global and regional outlook",
      "content": "- Global growth projections:\n  - \"We now expect global growth to hit 4¼ percent in 2010 and 2011, faster than previously expected.\"\n- Crisis context and recovery:\n  - Crisis originated in the U.S. housing market, intensified after the collapse of Lehman Brothers.\n  - Rapid, bold policy responses and unprecedented policy cooperation prevented a second Great Depression.\n  - Recovery is uneven: advanced economies face a \"lukewarm\" recovery with high unemployment, lasting banking-sector damage, and weak household balance sheets; emerging markets have a \"far more robust\" recovery driven by strong internal demand and a rebound in global trade.\n- Regional performance (Latin America and the Caribbean):\n  - Outcomes were uneven across the region: sound-policy countries (e.g., Peru) fared relatively well; Central America recovered more slowly; tourism-dependent Caribbean countries \"are still suffering.\"\n  - Factors supporting better performance: countercyclical monetary and fiscal policies, flexible exchange rates, significant international reserve buffers, more credible monetary policy, healthy banking systems and corporate sectors.\n  - Successful countries face new challenges of strong capital inflows and overheating: \"they are a victim of their own success.\""
    },
    {
      "heading": "Key findings and statistics",
      "content": "- Advanced-economy fiscal vulnerability:\n  - \"Public debt is expected to reach a staggering 120 percent of GDP by 2015—about 40 percentage points above pre-crisis levels.\"\n- Social progress example (Peru):\n  - \"The incidence of poverty fell from 55 percent in 2000 to 36 percent in 2008.\"\n- Policy space and buffers:\n  - Many Latin American countries had saved for a rainy day and were able to use fiscal policy to cushion the downturn and support employment."
    },
    {
      "heading": "Policy challenges and recommendations",
      "content": "- Exiting macroeconomic stimulus:\n  - Balance required: \"exit too soon, and you could kill the recovery, exit too late, and you may sow the seeds of the next crisis.\"\n  - Advanced economies: implement 2010 fiscal stimulus fully except where financing pressures exist; most advanced economies \"should start adjusting in 2011\" if recovery proceeds; entitlement reforms that do not affect demand can be implemented sooner.\n  - Emerging markets (including Latin America and the Caribbean): remove temporary fiscal stimulus as recovery advances; fiscal correction can ease the need for monetary tightening.\n- Monetary policy stance:\n  - In major advanced economies, \"monetary tightening can take a back seat to fiscal adjustment\" while inflation expectations remain low and well anchored.\n  - Economies ahead of the recovery curve need more timely monetary action to address overheating risks.\n- Managing capital inflows:\n  - Countries with strong fundamentals will likely see \"large and sustained capital inflows.\"\n  - A pragmatic mix of tools recommended: exchange rate appreciation, reserve accumulation, tighter fiscal policy, macro-prudential measures.\n  - Capital controls \"can sometimes play a role too, but should not be used to avoid needed adjustment.\"\n- Social policies and labor markets:\n  - Preserve basic social spending and social safety nets to protect vulnerable groups and support social and political stability.\n  - Adequate unemployment benefits, education, and training programs can limit social damage from high unemployment."
    },
    {
      "heading": "IMF role, governance, and institutional responses",
      "content": "- IMF crisis response highlights:\n  - \"We dramatically stepped up lending, we revamped our crisis prevention toolkit with the Flexible Credit Line, and we streamlined conditionality.\"\n- Governance reform and global cooperation:\n  - Need for more representative global governance to enhance legitimacy and effectiveness.\n  - G-20 coordination during the crisis was a \"huge step forward\" but still leaves many countries out.\n  - IMF is reforming governance to \"enhance the voice of emerging markets and developing countries.\"\n  - Emphasis on partnerships and cooperation with regions (example: partnership with Europe) while maintaining consistent lending practices globally: \"IMF lending in Europe works just like it would in any part of the world—we do not play favorites.\""
    },
    {
      "heading": "Conclusion — strategic priorities",
      "content": "- Maintain and reinforce international cooperation to manage complex, cross-border risks.\n- Defend macroeconomic stability and rebuild buffers to prepare for future shocks.\n- Ensure social progress accompanies macroeconomic policy so growth benefits the many, not just the few.\n- The \"twinning of macroeconomic stability with social progress\" is presented as the recipe to shift the region toward a virtuous cycle of prosperity and stability.\n\nAddress to Finance Ministers of the Americas and Caribbean, By Dominique Strauss-Kahn, Managing Director, International Monetary Fund, May 28, 2010.\n\n---\n\n\n References\n\n- Peru and the IMF\n- Speeches\n- Dominique Strauss-Kahn\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/sp052810"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2015/09/28/04/53/sp052810/index.md)",
    "[Structured JSON version](/en/news/articles/2015/09/28/04/53/sp052810/index.json)",
    "[Bundle manifest](/en/news/articles/2015/09/28/04/53/sp052810/bundle-manifest.json)",
    "Authors: Dominique Strauss-Kahn",
    "Published: May 28, 2010",
    "Global growth projections:",
    "Crisis context and recovery:",
    "Regional performance (Latin America and the Caribbean):",
    "Advanced-economy fiscal vulnerability:",
    "Social progress example (Peru):",
    "Policy space and buffers:",
    "Exiting macroeconomic stimulus:",
    "Monetary policy stance:",
    "Managing capital inflows:",
    "Social policies and labor markets:",
    "IMF crisis response highlights:",
    "Governance reform and global cooperation:",
    "Maintain and reinforce international cooperation to manage complex, cross-border risks.",
    "Defend macroeconomic stability and rebuild buffers to prepare for future shocks.",
    "Ensure social progress accompanies macroeconomic policy so growth benefits the many, not just the few.",
    "The \"twinning of macroeconomic stability with social progress\" is presented as the recipe to shift the region toward a virtuous cycle of prosperity and stability.",
    "[Peru and the IMF](http://www.imf.org/external/country/PER/index.htm)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[Dominique Strauss-Kahn](https://www.imf.org/external/np/omd/bios/dsk.htm)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2015/09/28/04/53/sp052810/index.md",
    "json": "/en/news/articles/2015/09/28/04/53/sp052810/index.json",
    "bundleManifest": "/en/news/articles/2015/09/28/04/53/sp052810/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-27T09:58:18.308Z"
}