`Criticism of IMF Role Improper'

Korea Times (Seoul, Korea), April 30, 1999 | Go to article overview

`Criticism of IMF Role Improper'


A renewed sense of optimism has descended upon Korea and many other Asian countries in recent weeks.

There are new signs that economic growth is gaining momentum.

Investment capital is again flooding into the region, and consumers are once more beginning to spend their money.

Although it will take time to determine the true strength of this rebound, there is no question that the current turn of events is most welcome.

But even as Asian countries emerge from crisis with earlier and stronger-than-expected recoveries, we are seeing a new line of attack by the critics of the IMF's role in Asia.

Until only a few months ago, IMF-supported programs in Korea, Thailand, and Indonesia were blamed for undermining these economies and plunging the countries into long-term depressions.

Now, however, as evidence mounts of more favorable prospects, the critics are fast changing their positions.

They explain that the crisis countries are indeed recovering, but this is despite the policies that were implemented under the IMF-supported programs.

In Korea, we now hear the argument that the turnaround has occurred primarily because of favorable international factors rather than the IMF-supported program, which is characterized as the same old (inappropriate) medicine.

The critics' interpretation of Korea's recovery is that it can be mainly attributed to three events in 1998, the short-term debt rescheduling agreement, the rebuilding of the country's foreign-exchange reserves, and the global easing of monetary policy after the crisis in Russia and Brazil.

The critics claim that these events were the basis for recovery and that they occurred independently of the IMF-supported program.

A careful look at the facts leads to a very different conclusion and I believe we should give credit where credit is due.

It has been the strong effort of the Korean government to implement -- and obtain political acceptance for -- far-reaching macroeconomic measures and structural reforms that have played the pivotal role in turning around the external situation and setting the stage for economic recovery.

This turnaround came under the IMF-supported program together with large international financial support, which was provided because of program implementation.

I would in particular argue that the debt rescheduling and the rebuilding of reserves would not have occurred in the absence of an IMF-supported program, and that the global easing had very little effect on macro policies as expansionary monetary and fiscal policies were adopted much earlier.

That said, let me consider each element of the critics' argument in turn.

The debt rescheduling agreement reached in early 1998 between Korea's commercial banks and international bank creditors was one element of the international community's strategy to assist Korea in avoiding a default that would have been disastrous for the country, as well as the region. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

`Criticism of IMF Role Improper'
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.