The World Bank and the International Monetary Fund, who have been holding their annual meeting in Manila, Philippines, for the past week, had their closing session on Friday (8 October).
SVs. INTERIOR:delegates undergoing security checks. (3 shots)
GV INTERIOR PAN conference building.
SV EXTERIOR:delegates walking into conference hall
SV INTERIOR: IMF Managing Director Johannes Witteveen, speaking in English.
SV INTERIOR: world bank president Robert Mcnamara speaking in English.
GV INTERIOR PAN: delegates seated at table.
WITTEVEEN: "There is a clear and general view that the path to sustainable economic growth and reduction of unemployment lies in the elimination of inflationary psychology and the restoration of a reasonable degree of price stability. Among the primary producing countries, there is understandable concern that import expansion in the industrial world may proceed at lower rates than in past recoveries because of the need for cautions policies in fight against inflation. Yet, I sense that developing countries concur that it would be in their own best interests for the industrialised countries to conquer inflation."
MCNAMARA: "But it was also agreed that these domestic efforts within the developing countries, as essential as they are, must be matched by determined efforts on the part of the industrialised world both to increase the flow of external financial assistance to the developing countries and also to reduce the barriers to their trade. Without these two complementary development efforts, domestic reforms and greater external assistance, even minimally acceptable rates of growth and economic and social advance would not be possible. Within this general agreement, there is an understanding that the World Bank should continue to be a major source of the external financial assistance required."
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Background: The World Bank and the International Monetary Fund, who have been holding their annual meeting in Manila, Philippines, for the past week, had their closing session on Friday (8 October).
SYNOPSIS: The meeting, which was held under strict security, ended with the consensus that the world was in for a period of financial belt-tightening, with governments trying to cut excessive spending and reducing external debt. The majority of delegates expressed fear of the consequences of another burst of inflation on top of the surge in prices since 1973. The closing session was addressed by both Robert McNamara, World Bank President, and Johannes Witteveen managing Director of the International Monetary Fund.
Finance Ministers and Central Bank Governors from more than 120 nations attended the week-long meeting.