Strengthen global financial safety net through bold reforms – Ofori-Atta charges IMF

Minister for Finance, Ken Ofori-Atta, has charged the IMF to strengthen the global financial safety net through bold reforms to the global financial architecture.

In his opening remarks at a Roundtable Discussion on “IMF Policy Priorities”, Mr Ofori-Atta praised the transformative leadership of IMF MD Kristalina Georgieva, which has led to the achievement of “truly momentous things”.

He however stated, “We need to stretch the IMF to do more. The need is great. And at these Annual Meetings, the developing world is asking the international community to do all it can to advance a reform agenda that ensures institutions like the IMF have the requisite mandates, financing, and governance models to deliver transformative impact.”

The Roundtable Discussion was hosted by US Treasury Secretary, Janet Yellen, on the sides of the IMF Annual Meetings being held in Morocco from 9th to 15th October, 2023.

The Marrakech gathering marks only the second time that Africa has hosted the Annual Meetings, the first time being fifty years ago in Kenya, in 1973.

Mr Ofori-Atta advocated for an IMF that is able to provide sufficient resources at scale to strengthen the global financial safety net. He also called for “reform of the available tools and lending instruments of the Fund to deal with global exogenous shocks.”

On her part, Indian Finance Minister Nirmala Sitharaman, underscored the need for the IMF to remain well-capitalised to meet future challenges.

Sitharaman advocated for a strong, quota-based, and adequately resourced IMF, Poverty Reduction and Growth Trust (PRGT) Financing and IMF governance reforms. She also highlighted India’s support for gender and governance reforms through the recent enactment of the Nari Shakti Vandan (Women’s Reservation Law), which reserves 33 per cent of the seats in Parliament and state legislatures for women.

On Governance, Mr Ofori-Atta pushed for broad based prosperity anchored on bold reforms to the global financial architecture, by calling for increased Sub-Saharan African representation on the IMF Executive Board, through the creation of a Sub-Saharan African seat at the IMF Executive Board Level.

Secretary Yellen, who chaired the meeting, welcomed the frank and open discussions which acknowledged that IMF member nations were championing “reforms that enhance the quality of their economic policies, increase economic potential, drive inclusive growth, build long term resilience and address underlying fragility and other challenges.”