(What a man: Dominique Strauss-Kahn last week annointed himself
spokesperson for 50 African countries at the G20! A strong critique,
below, as he tries some voice lessons today in Dar.)
http://www.brookings.edu/~/media/Files/events/2009/0303_imf/20090303_imf.pdf
TALBOTT: a quick question to Managing Director Strauss-Kahn about the
upcoming G-20 meeting in London and including the meeting you’ll have in
Tanzania. As a tee-up for that meeting, how do you hope those two
meetings connect? What do you hope might come out of Tanzania that might
then lead to an effective gathering of the G-20 in London?
MR. STRAUSS-KAHN: As you all know, the G-20 has existed for a long time
at the financial minister level, and since the meeting that took place
here in Washington on November 15, the meeting level has been enhanced
to the level of head-of-state in government, which means it is given
more political momentum. So we are having a preliminary meeting of the
financial ministers of the G-20 in mid-March, and then they expect a
meeting of heads of state at the beginning of April. The problem with
the G-20 is that on the one hand, it’s a good thing to have enlarged the
G7 and G8 to emerging countries and was long over due. And so the answer
which has been given to us certainly is the right answer. But when you
have 20 countries in the room, even if it’s the 20 countries with the
biggest GDP, then if you refer to the IMF membership of 185 members,
then you have 165 countries out of the room. And so the question of
legitimacy of this body is obviously at stake, especially the African
countries. We presented in the board in time, but not presented
directly, but by South Africa in the G-20. But when you say African
countries are represented by South Africa, it’s already the beginning of
a problem. So those African countries fear rightly that a decision could
be made at the global level by a kind of governance body of the world
economies without their voice and their comments. So I think that
Goldman Braun, who is very carefully managing the G-20 meeting of April
2nd, is trying to invite the African countries or maybe some others.
That’s a good thing. But on the other hand, the IMF can also play this
role. We’re a member of the G-20 and I feel, myself, as having a mandate
from all of my 165 members not being represented in the room. And so the
Tanzanian Conference will be a possibility to have a discussion with
them, at least the African part of them, to know what the expectation is
looking forward to this G-20 and what kind of message they want me to
convey. So from this point of view, the IMF can certainly be the
spokesperson or the spoke institution -- I don’t know if you would say
this in English -- and let’s say the spokesperson of African countries
not being directly represented at the G-20.
***
CSO statement on IMF work on policy support Instrument to Tanzania
Civil Society Groups Call for New, More Flexible Policies in Face of
Financial Crisis
For Immediate Release; Monday 9th March 2009 Contact:
Dr. Peter Bujari Semkae Kilonzo
Executive Director Coordinator
Human Development Trust - Dar Es Salaam Policy Forum - Dar Es Salaam
Email: [email protected] [email protected]
Phone: (O) +255 22 27 72 264, (M) +255 784 217127 Phone: (O) +255 22
2772611, (O) +255 782 317434
9 March 2009 (Dar Es Salaam) – On the day before a high-level conference
of policymakers co-hosted by Tanzanian President Jakaya Kikwete and
International Monetary Fund Managing Director Dominique Strauss-Kahn,
civil society groups are calling for new and more flexible economic
policies in Tanzania and across the African region. In the midst of a
global financial crisis, developed-country governments are enacting
bold, expansionary stimulus policies in efforts to trigger growth and
fight off recession. Meanwhile, African governments, as part of their
agreements with the IMF, are holding onto tight policies that prevent
stimulus and restrict options for increasing public investment to meet
basic human needs.
As part of Tanzania’s agreement with the IMF, the government must aim to
shrink its budget deficit from 3.7% of Gross National Product in fiscal
year 2008/2009 to 3.1% of GNP in FY2009/2010. A January 2009 IMF review
of the agreement stated that any decrease in revenue—whether tax
revenue, official development assistance, or remittances from African
Diaspora that might come about in the wake of the financial
crisis—should be met with “expenditure restraint.” Furthermore, the
agreement restricts the government from seeking domestic sources of
financing, and it aims to reduce inflation to 5% through monetary
policies that reduce economic activity, “including through rising
interest rates when necessary.”1
“These are the wrong policies at the wrong time,” said Dr. Peter Bujari;
Head of Human Development Trust and chair of Tanzania AIDS Forum.
“Virtually every government in the world that is operating independently
of the IMF is now stimulating its economy with expansionary economic
policies. Tanzania’s economy is not fully insulated from the current
crisis. Why should it be kept from pursuing the same policy options as
other governments?”
“President Kikwete and Mr. Strauss-Kahn have written that the conference
‘will focus on how policy frameworks will need to change.’ We welcome
change, but the IMF agreement itself has us traveling down the same old
road, following the same restrictive policies as before—in some areas
even more strict-Belt tightening or growth without poverty reduction,”
said Semkai Kilonzo Coordinator for Policy Forum. “The IMF classifies
Tanzania as a ‘mature stabilizer.’ If we are mature and stable, then
open the policy space for us to chart our own shared economic path.”
The conference, titled “Successful Partnership for Africa’s Growth
Challenge,” will take place 10-11 March in lead-up to an April meeting
of G20 leaders, hosted by UK Prime Minister Gordon Brown. In a speech
last week at the Brookings Institution in Washington, DC, Mr.
Strauss-Kahn decried the lack of African representation within the G20,
but held he would attend the meeting in part as the spokesperson for
African countries. “With due respect, given its policies and its lack of
due African representation within the institution, I do not need the IMF
to speak for me or my country on the global stage,” said Nosim Losai,
Advocacy and Policy Manager for Human Development Trust.
We all together call for IMF policy change to allow policy autonomy and
investment in human needs.
1 IMF review of Tanzania’s Policy Support Instrument. International
Monetary Fund, 2009.
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