There are signs that the IMF may be reconsidering its stance that all capital flows are harmful.
An estimated 70,000 people demonstrated in Birmingham to call on G8 leaders to cancel poor countries’ unpayable debts.
The UK government is leading the effort to enable the IMF to pursue capital account liberalisation (CAL) in its member countries.
Borrowers from the International Bank for Reconstruction and Development (IBRD), the main World Bank lending arm, may have to pay higher charges for their loans in the future.
In addition to extending the IMF’s role, its governors have been examining measures to prevent future financial sector crises.
Doubts about the IMF’s capacity to deal with international currency problems are mounting as the South East Asian crisis worsens despite the IMF’s bail-out efforts.
Nicaraguan civil society organisations (CSOs) fear Nicaragua will not qualify for the HIPC Debt Initiative before the population has suffered further.
The IMF has established the Supplemental Reserve Facility (SRF) to provide extra resources to countries with balance of payments problems caused by rapid capital outflows such as those experienced in South East Asia.
The 50 Years is Enough alliance of NGOs took to Washington’s streets in January to protest about US funding for the IMF and its bailout of the Asian economies.
The IMF’s interventions have again raised discussions of who bears the burden of financial crises.