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Against the backdrop of a fragile and uneven global recovery, the IMF’s policy steering body—the International Monetary and Financial Committee—met today to discuss ways to boost growth and to foster a sustainable, balanced, and job-rich global economy.
Bold action is needed, especially on structural reforms, said Singapore Finance Minister and IMFC Chair Tharman Shanmugaratnam, referring to changes to the fabric of an economy that can help to jump start growth.
“We all recognize that structural reforms have been too slow and we’ve got to pick up the pace,” he stated, speaking during a press conference on the heels of the IMFC meeting.
“Our single biggest focus is to be on the reforms that enable us to lift potential growth and build a better tomorrow,” Tharman said. “If we don’t focus with urgency on that, we won’t solve even today’s problems. We’ve got to bring the long term into the short term, and that has to be our whole way of thinking about how we complete this recovery process.”
IMF Managing Director Christine Lagarde emphasized the need for swift action on reforms, adding that reforms can spur growth in both the short term and over the long haul.
“Structural reforms and infrastructure investment can address both the demand, short-term side, and the supply, medium-term issues,” said Lagarde.
Lagarde said that she was encouraged by the IMFC’s support and endorsement of the IMF’s work agenda. Going forward, the Fund will focus its efforts on three areas to help the global community achieve stronger growth, specifically:
In its communiqué, the IMFC also endorsed the IMF’s work on international taxation and on sovereign debt restructuring issues. Lagarde added that the IMF will be promoting the use of strengthened collective action clauses, which are already being used by some sovereign bond issuers.
Full article on IMFSurvey Magazine