Hear Hear! And the writer is a senior Citigroup manager, no less. I have the impression that Citi has been one of the leading financial houses in exploiting the developing world, so they may be mostly concerned with protecting their investments, but perhaps there is some real concern for "the victims of financial stress that is both not of their making and is beyond their control."The Fund must act to protect emerging markets
By William Rhodes
Published: October 23 2008 19:26 | Last updated: October 23 2008 19:26
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After the resolution of the crises of the 1980s and 1990s, many emerging markets implemented key reforms, pursued prudent macroeconomic policies, strengthened banking and financial institutions and built up significant central bank reserves. In spite of their reforms, many of these countries have been caught in the downdraft of this credit crisis. They are the victims of financial stress that is both not of their making and is beyond their control. It could affect their real economies. The situation is deteriorating; these countries should not be left adrift. It would be imprudent to risk undermining the efforts in the Group of Seven leading industrialised countries to stabilise conditions by allowing the strains in emerging markets to evolve into an acute situation. Now is the time to act.
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The lesson of the Latin American debt crisis and Asian financial crisis is that mechanisms must be put in place rapidly to shore up these vulnerable markets. The International Monetary Fund must assume a leadership role as it has in the past.
The writer is Citigroup senior vice-chairman; chairman, president and CEO of Citibank and first vice-chairman of the Institute of International Finance
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