28 February 2006
Recent articles, letters and papers attempt to address some of the World Bank and IMF's institutional deficiencies.
Several recent articles have brought to light some of the inadequacies inherent in the IMF's current structure. Following the announcement by several countries that they are planning on repaying their loans to the IMF earlier than expected, the institution may soon be forced to tread water until new sources of revenue are found. Questions surrounding the relevance of the institution have prompted several articles, letters and working papers which outline ideas about the reforms necessary to keep the Fund's head above water.
In addition, a recent speech given in New Delhi by the governor of the Bank of England, Mervyn King, which suggested that the IMF's monetary role is becoming "obscure" and former managing director of the World Bank, Jessica Einhorn’s declaration that the IBRD needs to find a way to assist middle-income countries or start to disband in the coming decades have both generated a lot of discussion. Shortly after Mr. King's speech which addressed the shortcomings of the IMF, Chancellor Gordon Brown echoed Mr. King's remarks, stating that, "I suggest the IMF should be updated to reflect the global economy." These statements prompted several articles and letters to the editor in the Financial Times.
A working paper by Nancy Birdsall of the Center for Global Development and Kemal Dervis of the UNDP focuses on the proposition of a new facility at the IMF or World Bank. The intention of this stability and growth facility would be to increase support to middle-income countries, or highly indebted emerging market countries, by reducing their debt without disrupting their growth or being detrimental to their social development programs. These and other related articles are available below.
Additional Resources
- The IMF: the Wrong Business Model - or the Wrong Business?, Jubilee Research, January 13, 2006 (Jubilee website)
- A Stability and Growth Facility, by Nancy Birdsall and Kemal Dervis, January 20, 2006 (CGD website)
- Creating single board for IMF and World Bank would allow political and strategic oversight, by Fritz Fischer, February 23, 2006 (Financial Times website)
- Reforming the IMF: Back to the Drawing Board, by Yilmaz Akyuz, November, 2005, TWN website (MS Word 240 KB)
- Reforming the World Bank, by Jessica Einhorn, February 1, 2006 (NY Times website)
- Brown says IMF needs updating, February 28, 2006 (Reuters website)
- Bank governor calls for new focus at IMF, by Ian McConnell, February 21, 2006 (The Herald website)
- World needs independent Fund, by Martin Wolf, February 21, 2006 (Financial Times website)
- The Role of the IMF in Well-Performing Low-Income Countries, by Steve Radelet, February 2006 (CGD website)