Wealthier countries must equip the International Monetary Fund to prevent and manage the spread of financial crises across emerging and developing economies. This will require adequately bolstering the IMF ahead of time with well-positioned reserves and firebreaks.
OXFORD – The world needs to prepare for a cascade of financial crises across emerging and developing economies. The writing is already on the wall, with Ghana, Pakistan, Bangladesh, and Sri Lanka currently queuing at the International Monetary Fund’s door. Wealthier countries must now equip the IMF – the world’s financial firefighter-in-chief – to prevent and manage the spread of crises. They could start by ensuring that the Fund has the resources to stop lower-income economies adopting beggar-thy-neighbor policies that destroy other countries’ livelihoods and threaten political and economic stability.
OXFORD – The world needs to prepare for a cascade of financial crises across emerging and developing economies. The writing is already on the wall, with Ghana, Pakistan, Bangladesh, and Sri Lanka currently queuing at the International Monetary Fund’s door. Wealthier countries must now equip the IMF – the world’s financial firefighter-in-chief – to prevent and manage the spread of crises. They could start by ensuring that the Fund has the resources to stop lower-income economies adopting beggar-thy-neighbor policies that destroy other countries’ livelihoods and threaten political and economic stability.