Lee proposes restructuring of IMF, World Bank

By Yoo Cheong-mo
BEIJING, Oct. 24 (Yonhap) -- South Korean President Lee Myung-bak on Friday
called for overhauling the roles and functions of the International Monetary Fund
(IMF) and the World Bank in order for the world to overcome the current financial
turmoil and prevent the recurrence of a similar crisis in the future.
In a keynote speech at the opening session of the Asia-Europe Meeting (ASEM)
summit in Beijing, Lee asserted that emerging Asian economies should be allowed
to reflect their positions in the restructuring of the international financial
organizations.
"The existing international financial system did not function properly because it
failed to keep pace with globalization, revolutions in information and
technology, as well as the rapidly changing international economic environment in
general," said Lee.
"In light of this, we hope to see discussions take place that will strengthen the
role and function of the IMF and the World Bank, whereby we will have an improved
mechanism equipped with an early warning and surveillance system, effectively
warning us of possible dangers."
The biennial ASEM summit opened in Beijing Friday, with the global financial
crisis the key focus of attention among participating leaders of 43 member
nations and heads of the European Commission and the ASEAN Secretariat.
ASEM nations account for roughly 60 percent of the world's gross domestic product.
Earlier on Friday, leaders of South Korea, China, Japan and 10 member states of
the Association of Southeast Asian Nations (ASEAN) met over breakfast in Beijing
and agreed to create an US$80 billion joint fund by next June to fight regional
financial crises.
The so-called ASEAN Plus Three countries also agreed to push for the
establishment of a regional economic surveillance organization to ensure greater
financial stability in the region.
President Lee, meanwhile, stressed a greater role for emerging Asian economies in
global discussions on combating the financial crisis. He also asked the Asian and
European leaders to stimulate their economies by increasing their fiscal
expenditures, cutting taxes and refraining from protectionist trade policies.
"The expanded Group of Eight summit should allow more emerging economies to take
part in the discussions... on tackling the financial crisis. Through ASEM, we can
find means for Asia and Europe to cooperate more closely," said the president.
"I believe it is critical that we do not revert to protectionist tendencies
because of this financial crisis. During the days of the Great Depression, the
situation was made worse by countries putting up protectionist walls which led to
a decrease in global trade and consumption," said Lee.
Before concluding the speech, Lee expressed high expectations for the Group of 20
summit slated for mid-November in Washington D.C., saying that the upcoming
summit meeting is expected to generate "substantive and productive" results
through closer consultations between emerging and advanced economies. Lee is
scheduled to attend the Group of 20 summit.
ycm@yna.co.kr
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