Integration and Growth in a Globalized World Economy

IMF Speeches, September 23, 1999

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Integration and Growth in a Globalized World Economy

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Bibliographic details

• Published: September 23, 1999
• Series: IMF Speeches
• DOI: https://doi.org/10.5089/9781557758477.076

Summary and scope

• Presents four commentaries by an IMF Deputy Managing Director on integration and growth in a globalized world economy.
• Emphasizes that globalized and integrated financial markets are the norm, offering opportunities and risks.
• Highlights that sound macroeconomic policies must be a top priority and must be supported by transparency and accountability.
• Stresses that policies at the country and global level must be mutually reinforcing, with industrial countries meeting more outward-oriented policies of developing countries with greater openness around the world.
• Recommends that the IMF agenda include adopting bold structural reforms and building a social consensus for reform through economic security, good governance, and a better dialogue with civil society in Africa.
• In the Berlin address, development is argued to rest on three pillars: good economic policy, a favorable legal and political environment, and attention to equitable social development.

Key findings and themes

• Globalized and integrated financial markets create:
  • Opportunities to quicken the pace of investment, job creation, and growth.
  • Some inevitable risks.
• Macroeconomic policy priorities:
  • Sound macroeconomic policies are essential.
  • Transparency and accountability are necessary supports for policy effectiveness.
• Policy coherence:
  • Country-level and global-level policies must be mutually reinforcing.
  • Industrial countries should respond to outward-oriented policies of developing countries with greater openness.
• Structural and social dimensions:
  • IMF agenda should include bold structural reforms.
  • Building social consensus for reform through economic security, good governance, and dialogue with civil society—especially in Africa—is recommended.
• Development pillars (Berlin address):
  • Good economic policy.
  • Favorable legal and political environment.
  • Attention to equitable social development.

Policy recommendations

• Adopt bold structural reforms as part of the IMF agenda.
• Build social consensus for reform via:
  • Economic security.
  • Good governance.
  • Better dialogue with civil society in Africa.
• Promote transparency and accountability to support macroeconomic policies.
• Encourage mutual reinforcement between country-level and global-level policies, with increased openness from industrial countries.