Annual IMF and World Bank meeting Tokyo – Shahir Idriss The opening of the annual meetings of the International Monetary Fund (IMF) and the World Bank group in Tokyo coincided with the 60th anniversary of Japan’s membership in the IMF. Despite the pessimistic conditions of the global economy, IMF Managing Director, Christine Lagarde, addressed the world with a message aiming to confront the economic and monetary challenges spreading cooperation spirit between the participants in order build a better future.
The meeting started with an opening ceremony which was attended by Japanese Crown Prince Naruhito, Lebanon's Central Bank Governor Riad Salameh, World Bank President Jim Yong Kim in addition to international economic and financial figures.
Japanese Crown Prince Naruhito expressed gratitude for the support the international community provided in the tsunami crisis, praising the efforts of the IMF and the World Bank in supporting the economic development and fighting poverty.
He said the ongoing Tokyo meetings "will offer an opportunity to strengthen solidarity among countries, which will help promote our effort in unity for addressing global challenges.”
During the 66th session of the Annual Meetings of the IMF and the World Bank Group, Chairman of the Boards of Governors Riad Salameh delivered a speech ensuring that "participants in the New Arrangements to Borrow have agreed to activate the arrangements for the full amount for another six-month period."
The membership has also committed to increasing the Fund’s resources strengthening the global safety net for members, he said.
Salameh said that applying reforms in the Euro-area would help revive the growth, achieving constant inclusive growth, creating employment opportunities for youth and increase women's stimulation for work which would altogether help the fragile countries ensure sustainability of poverty reduction.
He invited the Euro-zone members to "persevere in efforts to stabilize the sovereign debt market, and implement the necessary structural reforms to revive growth. The Fund has continued to emphasize structural reforms as prerequisites for inclusive growth."
"Recent work by Fund staff suggests that well designed policies can boost short-term employment, while improved labor supply incentives, especially for women and older workers, can increase medium-term employment," he added.
He urged all the countries participating to the meeting to join in forging a new vision that builds on the progress of the last decade and includes prosperity for all, stressing on the importance of strategies based on cooperation and support of conflict affected countries with reforms to enable the needed flexibility to achieve new developments.
Salameh went through the changes in the Middle East, and the support provided by the IMF and the World Bank to the Arab Spring countries in several projects and reforms.
He addressed the Lebanese economy in his speech saying "Lebanon’s economy has shown remarkable resilience to severe shocks, thanks to a credible monetary policy, a stable currency, prudent banking practices, including the separation between retail banks and investment banks, and sound public debt management."
He invited the participating countries to make efforts for more transparency and learn from the experience about what didn't work and work on a culture of results, looking forward to better aligning resources, products, and knowledge in ways that make a difference on the ground.
From her side, Lagarde believes the key contours of the future lies in the use of new approaches, new tools and new relevance.
She invited to complete the "agenda of financial sector reform with better regulation, better supervision, better resolution of cross-border entities, sensible incentives in financial institutions, and a level playing field for the sector."
She added that the euro-zone must keep pushing ahead with implementing the policy initiatives as "accommodative monetary policy; the right pace of fiscal adjustment, mindful of not undercutting growth but with solid and realistic plans to bring debt down over the medium term; finishing the banking sector cleanup; and structural reforms to boost productivity and growth."
Lagarde mentioned the Japanese experience saying that "it is an inspiration to the world," in overcoming the turmoil of today and improving the future.
She also went through the situation in the Middle East and said it is transforming but the "road ahead will be fraught with difficulty," adding that the transformations in the Arab countries "will shine through as a beacon of hope," mentioning Egypt as an example for it.
World Bank President Jim Yong Kim stressed on the importance of fighting poverty and "overhauling" operational systems and policies to respond quickly and decisively to risks, ensure security, justice and jobs.
He said the World Bank Group is dreaming of a world free of poverty, and keen to achieve it, and will prioritise good governance as a cornerstone of development, continuing to aggressively fight corruption.
He concluded saying "It is time to bend the arc of history," which might be difficult but not impossible, adding "we can, we must, and we will end poverty and build shared prosperity."