The IMF's governing body said on Saturday that this year should be a year of economic reforms, in light of looming dangers to global growth such as the high price of oil and protectionist policies.
"While we are seeing strong expansion in the global economy, this is a time of profound change as a result of globalization, and it is also a time of risk, especially from high and volatile oil prices and the dangers of protectionism," said Gordon Brown, Britain's chancellor of the exchequer and chairman of the IMF's International Monetary and Financial Committee (IMFC).
In a statement on its meeting, the IMFC said that major risks to global economic growth, such as the high price of oil, protectionism, the possibility of a bird-flu pandemic, or an abrupt shift in global financial market conditions, "have yet to be comprehensively addressed."
PHOTO: AFP
The IMFC called on the US to increase its national savings rate, and also called on Europe and Japan to undertake structural reforms that would boost growth, and on some emerging economies to allow greater exchange rate flexibility.
"Given economic interlinkages, all countries and regions will have a role to play by increasing the flexibility of their economies and adapting to changing global demand patterns," the IMFC said.
The committee said that the IMF should take steps to become more engaged in multilateral surveillance of economies.
This would make it possible to identify potential problems sooner and prevent crises, Brown said.
The committee said that the IMF's "effectiveness and credibility ... must be safeguarded and its governance further enhanced, emphasizing the importance of fair voice and representation for all members."
Some developing countries have called for additional representation on the global finance body.
"We underscore the role an ad hoc increase in quotas would play in improving the distribution of quotas to reflect important changes in the weight and role of countries in the world economy," the IMFC said.
The IMFC called on IMF Managing director Rodrigo de Rato to come up with a new quota system by September.
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