Farewell Speech to the Executive Board, By Alexandre Barro Chambrier, IMF Executive Director

IMF News, October 30, 2002

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Speech title: Farewell Speech to the Executive Board
Author and role: Alexandre Barro Chambrier, Executive Director, International Monetary Fund
Location and date: Washington DC, October 30, 2002
Constituency represented: Benin, Burkina Faso, Cape Verde, Central African Republic, Chad, Comoros, Republic of Congo, Côte d'Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Príncipe, Senegal, and Togo.
Length of service on the Executive Board: eight years

Observations on institutional change:
- The IMF of 2002 is described as "very different from the one that I joined in 1994."
- The Fund "learned and adapted" through crisis experience and "developing new tools to prevent or attenuate crises."
Crisis episodes referenced:
- Mexican crisis; Asian crisis; Brazilian crisis; Turkish crisis.
- Financial and economic crisis in Russia, with the judgment that Russia "is now trying very hard and gradually succeeding in becoming a economy."
- Ongoing Argentine crisis at the time, with confidence that "a satisfactory solution will be found."
Institutional role asserted:
- The Fund "has played a very constructive role in protecting and strengthening the international monetary system" and should "continue making this great institution even more responsive to the needs of the membership."

Fund focus broadened to address developing-country needs, particularly Africa.
Policy instruments and initiatives highlighted:
- ESAF/PRGF: consensus achieved on strengthening ESAF and creating the PRGF; the Fund "accepted as its goals to help contribute to the reduction of poverty and the promotion of sustainable development in Africa and other developing countries."
- HIPC Initiative and enhanced HIPC: described as "giving hope to low-income countries."
Concerns and recommended emphasis:
- Ensure ownership of programs and follow-through in the field; address perceived disconnects between the PRSP process and PRGF discussions.
- Programs should set country-specific needed growth rates and then design appropriate macroeconomic and structural policies to achieve those rates.

Public perception issues:
- The Fund is criticized as "too rigid and conservative"; perceptions that it "always stands for austerity" and applies "double standards" need addressing.
- Calls for political leadership of stronger members to counter misunderstandings and correct policies harmful to low-income countries (e.g., "agricultural subsidies and protection").
- Commendation of the Managing Director for addressing agricultural subsidy issues.
Outreach and ownership:
- IMF missions have increased contacts with the private sector and civil society; author welcomes this but urges broader societal engagement.
- Review of IMF conditionality guidelines to streamline them and emphasize ownership is applauded; stresses importance that the message be followed in the field.

Growth imperative:
- For HIPC and other low-income countries to reduce poverty, they "have to increase their growth performance in a sustainable manner."
- Concern that without change "most African countries will fall further behind" and the Millennium Development Goals may become unattainable.
Debt issues:
- HIPC review shows debt remains complex and "progress is slower than we had expected."
- Completion-point outcomes must lead to "debt sustainability" as a necessary condition for macroeconomic stability and growth.
- Need to address debt problems of some middle-income countries before they have systemic impacts and to find "new and innovative ways to address the debt overhang" of these countries.

Financial discipline and capacity building:
- Progress noted in domestic resource mobilization, expenditure management, and more transparent budgets.
- Importance of an IMF "exit strategy" as countries develop fiscal discipline.
Technical assistance initiatives:
- Commendation for establishing two AFRITACs; one "successfully inaugurated in recent days"; urgency to establish the other centers "as soon as possible."
- Emphasis that trained staff should remain in posts and that "reform of the civil service" deserves more attention.
Use of Resident Representatives:
- Resident Representatives can provide valuable country-specific inputs; selection should ensure both technical competence and political sensitivity.
Good governance:
- Increased importance in Fund-supported programs; effective implementation of laws and strengthening weak judicial systems are priorities rather than passage of laws alone.

Board representation:
- Concern that the revision of quota exercise is "leading to a loss in the voting power of Africa on the Board" at a time of increased IMF involvement in Africa.
- Suggestion to adapt quota formulae to ensure equitable representation and preserve the cooperative nature of the Fund.
Staff diversity and personnel matters:
- A report indicates "there is a problem among some of our staff as regards promotions and other personnel matters."
- Management is "dedicated to making progress" and the speaker hopes for satisfactory solutions to ensure equal treatment in career paths.

Personal acknowledgements include gratitude to:
- Two Managing Directors: Michel Camdessus and Horst Kohler.
- Colleagues and staff named for specific contributions: Alasanne Ouattara, Stanley Fischer, Anne Krueger, Eduardo Aninat, Shige Sugisaki, Mamoudou Toure, Abbas Mirakhor, Cyrus Rustomjee, members of the G-11, Directors of the African and the Middle East Departments (Mr. Calamitsis, Mr. Gondwe, Mr. Paul Chabrier), Mr. Bio Tchane, Mr. Abed, Executive Board Services, Board assistants, Ms. Lundsager and U.S. authorities, Alternate Damian Ondo Mane, Rutayisire (new Alternate), advisors and assistants including Malangu Kabedi, Joseph Ntamatungiro, Samba Thiam, Moussa Yaya, Administrative Assistant Brigitte, Eliane and Germaine.
Final reflection:
- Leaves the Fund "feeling more optimistic about the future of Africa" while recognizing major challenges remain.
- Closes with Saint Paul quote: "I have run with perseverance and have finished the race" and leaves judgment of success to colleagues and constituent members.
Closing line: "Thank you and au revoir."

Farewell Speech to the Executive Board, By Alexandre Barro Chambrier, IMF Executive Director — October 30, 2002