Typical street scene in Santa Ana, El Salvador. (Photo: iStock)
April 12, 2008
A communiqué following an April 11 meeting of the Group of Seven industrial countries' finance ministers and central bank governors in Washington reaffirmed "the important role for the IMF in securing global financial stability" and endorsed "significant progress on IMF reform."
Group of Seven industrial countries' finance ministers and central bank governors meet in Washington (IMF photo)
GROUP OF SEVEN INDUSTRIAL ECONOMIES
In their statement, G-7 finance ministers and central bank governors highlighted the role of the Fund as follows:
"We reaffirm the important role for the IMF in securing global financial stability. In this light we endorse the significant progress on IMF reform:
• We welcome the agreement on quota and voice reform in the IMF as an important step to recognize the greater global weight of dynamic economies, many of which are emerging markets, and increasing the voice of low income countries.
• We reiterate the importance we place on the IMF's new framework for surveillance, including for exchange rates, and urge its firm and even-handed implementation.
• We welcome progress toward putting the IMF's finances on a more sustainable footing, including a $100 million annual reduction in administrative expenses. Ongoing budget discipline will be required. We support new sources of income, including an endowment financed by a limited sale of IMF gold.
Taken together, these important reforms will boost the IMF's legitimacy, effectiveness, and credibility."
Gold sale
Following the G-7 Meeting, U.S. Treasury Secretary Paulson made a statement that also focused on IMF reform, including noting that:
"I commend Dominique Strauss-Kahn, the Managing Director, for putting a concrete plan on the table to deal with the IMF's administrative expenses. As part of this reform, I explained to my colleagues that the U.S. will seek Congressional authorization for a limited gold sale for an IMF endowment."
■See also the communiqué of the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G-24).
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