Munich Personal RePEc Archive

THE NEW FACE OF THE IMF

Mico, Apostolov (2007): THE NEW FACE OF THE IMF. Published in:

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Abstract

The idea for this report was the seminar for civil society organizations organized by the IMF at the JVI in cooperation with the Stability Pact for South Eastern Europe took place in Vienna at October 31 – November 2, 2007. Mr. Mico Apostolov attended the seminar as a CEA member and he has prepared a report upon which this report to USAID was prepared. The seminar was organized on the bases of the constant effort of IMF to introduce as much as possible transparency into its work with the wider sector of the civil society. The Civil Society Organizations (CSOs) are in the core and in fact shape the civil society. Thus, it is a perfect target group for transmission of the already achieved, the present engagements and the future projects and intentions of IMF. The quality of presented / learned was at the highest level, knowing that all of the presenters are key decision-makers and policy-creators for IMF and the region of Southeast Europe. Hence, the output was of importance, setting up the foundations of the current macroeconomic policies and giving indicators that are important milestones for national governments and CSOs in their day-to-day work. In a conclusion, it is evident that the overall macroeconomic parameters of the Southeast Europe show that this region is in phase of rapid convergence and the national economies will continue to grow rapidly, as expected, in the years to follow. Although second-generation (structural and institutional) reforms are underway in Southeastern European economies, the unprecedented levels and large variations of external imbalances occupy relatively high positions on the policymakers agenda. Widening external imbalances reflect either rapid capital formation or private consumption booms, but there are country-specific thresholds beyond which market participants are unwilling to finance these deficits. Even if the growth potential of these economies justifies the large and persistent deficits, in case of sudden shift in the market sentiment, the inevitable adjustment could have devastating macroeconomic implications. The ensuing reduction of current account deficits could lead to a slowdown in medium term growth and reduction of long run per capita income. Hence, despite the strengthened macroeconomic management, SEE economies must continue their cooperation with the Fund, particularly in terms of regular surveillance of macroeconomic and financial market developments. This report was prepared under the contract provisions signed between CEA and USAID for nonexclusive services to USAID as part of a grant agreement.

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