Ensuring that these assessments capture the most relevant factors and reach the private sector quickly in an easily digested format is essential both to enable markets to make informed judgments and to give countries strong incentives to pursue sound policies. Holding back such information only means that the surprises are bigger when the information finally gets out. Big surprises lead to big changes in prices and can trigger crises. The IMF is now making transparency a priority, and we are beginning to see changes. Directly through its own website and other publications, and indirectly by asking member countries to increase disclosure, the IMF has helped to increase the information available on countries' economic policies and prospects.
Accountability is essential.
Steps need to be taken to increase accountability to IMF shareholders and to the taxpayers. I hope that the creation of the new independent evaluation office at the IMF will in fact increase accountability. It is also essential that the IMF not create expectations that reduce the incentives for countries and for individuals to take policy actions that are essential to prevent crises. Whenever possible, policy actions should be taken prior to the start of IMF programs. Expectations of continued or additional financial support in the case of poor policy decisions in a country reduce the incentives to make good economic decisions.