Key US Treasury official concerned with the international financial institutions resigns
8 February 2007
US Treasury International Affairs Under-Secretary Timothy D. Adams announced his resignation on February 2, 2007.
The Under-Secretary is responsible for the development and implementation of policies reagrding the international financial institutions, economic development and international debt, as well as US participation within the IMF, World Bank, and other international financial institutions.
One of Adams focuses as Under-Secretary was reforming the IMF. According to the Shanghai Daily he claimed that the IMF was “asleep at the wheel” at a time when it could be acting as an effective member of the international development community. In March 2006 in Tokyo, Adams stated “the need for the governance structure of the Fund to better reflect the world economy.”
Adams advocated for reshaping the IMF to focus on its original mission of international financial stability and balance of payments adjustments. He urged the IMF to move away from lending, while focusing more on exchange rate surveillance. “We should measure IMF effectiveness by how well it helps countries and the global system avert or recover from financial crises, not by the volume of Fund lending,” Adams claimed in a 2005 speech.
His proposal involved a reallocation of IMF voting shares. This effort specifically focused on China, South Korea, Turkey, and Mexico.
Some have speculated that without Adams' leadership there is a possibility that US interest in reforming the institution will fade. This comes at a time when civil society is increasingly questioning the purpose and function of the IMF. Adams addressed this possible gap in his resignation letter to President Bush, “the US needs to continue to be the advocate [for reform]," he said.
Adams was sworn in as Under Secretary for International Affairs on August 2, 2005. He has cited Adams' desire to spend more time with his family as the reason for his resignation.
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