IMF Managing Director Horst Koehler was reported as backing an independent Asian Monetary Fund when he visited Malaysia early September. The idea emerged during the Asian crisis in the late 1990s and gained momentum in Asian capitals but was strongly opposed by the US. “I think it’s stupid that when the idea first came up, there was such hostility” said Koehler who also praised Malaysia for its heterodox management of the Asian crisis, which included a currency peg to the US dollar and hotly-debated capital controls. Malaysia’s recovery was quicker than its neighbours’.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.