## Transcript of a Press Conference by IMF Managing Director Christine Lagarde at the end of a G-20 Meeting of Finance Ministers and Central Bank Governor Meeting

_IMF News, February 23, 2014_

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## Bibliographic details
- Published: February 23, 2014

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### Context and setting
- Date and place: Sydney, February 23, 2014.
- Occasion: Press conference at the end of a G-20 meeting of Finance Ministers and Central Bank Governors hosted by the Australian Presidency.
- Acknowledgements: Prime Minister Abbott, Treasurer Joe Hockey, and Governor of the Central Bank Glenn Stevens singled out for hospitality and hosting.

### Global growth outlook and IMF forecasts
- IMF growth forecasts cited:
  - 2014: 3.7
  - 2015: 4 percent
- IMF assessment: "a global economy that is picking up."

### G-20 focus and consensus on growth
- The Australian Presidency placed growth as the rallying factor for both advanced economies and emerging market economies.
- Meeting dynamics:
  - Initial expectations of adversarial discussions between advanced economies and emerging markets — particularly over tapering by the U.S. Federal Reserve — did not materialize.
  - Participants displayed "solid, consistent exchange of views" and "respect for each other's necessary policies."
  - Growth served as a unifying objective.

### IMF analysis and reform agenda to boost growth
- IMF delivered an analysis at the request of the Australian Presidency on reforms required to achieve "more and better growth."
- Reform channels identified: fiscal reforms, structural reforms, and monetary policy mindful of domestic effects and spillovers.
- Projected impact of reforms:
  - A 0.5 increase of GDP over a period of five years which totaled 2 percent additional GDP over that period of five years.
  - Equivalent stated outcome: "this 2 percent GDP increase with this 2 trillion additional that could be delivered."
- Implementation notes:
  - Endorsement of the IMF paper and modelization was reported.
  - G-20 members are to identify specific actions and deliver country-specific reforms.
  - The IMF believes the 2 percent objective "can be achieved and possibly exceeded" if identified reforms are adhered to and delivered.

### Country ownership and specificity
- Reform implementation must be country specific.
- Examples referenced: China, Japan, Mexico cited as indicating parts of their plans that respond to the four broad reform categories (including labor market reform, fiscal reform, etc.).

### Ukraine: IMF readiness and conditions for engagement
- Status: Ukraine is a member of the IMF.
- IMF stance:
  - "If the Ukrainian authorities were to ask for IMF support... we stand ready to do that."
  - Support types: policy advice, financial support, diagnostic assessment, and catalytic role in partnership with other international actors.
- Preconditions and process for IMF engagement:
  - Need for counterparties and dialogue: "we need to have somebody to talk to."
  - Economic program must be owned by the authorities and the people.
  - IMF must operate "under the rules" and require initial economic reforms to be started for international financial support to follow.
- Operational capability concerns:
  - The IMF can provide help when requested but needs reliable, long-term resources and a representative institution to face future risks and crises.
  - Reference to quota reform: the 2010 reform needs to be delivered upon by the membership to ensure the IMF remains representative and resourced.

### Institutional effectiveness and resources
- Concern raised about stalemate in IMF reforms (quota changes and funds available).
- Managing Director's response:
  - Commitment to continue striving for effectiveness regardless of obstacles.
  - Emphasis on the need for reliable, long-term resources and delivery of the 2010 reform to maintain IMF representativeness and capacity.

### Meeting tone and facilitation
- Credit given to the Australian authorities, including Joe Hockey, for facilitating constructive dialogue.
- Observed attitude: open-mindedness among participants to consider domestic requirements, spillover consequences, and the reality of volatility associated with monetary policy changes.
- Final assessment: the debate "certainly was not the difficult debate that was portrayed in advance of the meeting."

*Transcript of a Press Conference by IMF Managing Director Christine Lagarde, February 23, 2014.*

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## References

- [Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)
- [Transcripts](https://www.imf.org/en/news/searchnews)
- [Press Release: IMF Managing Director Christine Lagarde Applauds G20 Growth Agenda](http://www.imf.org/external/np/sec/pr/2014/pr1465.htm)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/28/04/54/tr022314_