Countries that do not meet the pre-conditions would receive IMF help only in a crisis that affected the entire system. Removing structural reform from the IMF's mandate is based on a well-known proposition that money can solve liquidity problems, but not real structural problems. In developing countries, structural problems arise because of regulation, tariffs, inadequate financial supervision, absence of the rule of law, and other impediments to investment. As recent experience demonstrates, loans and liquid resources often allow countries to delay reform. The IMF can help sustain market discipline through the publication of timely, accurate information on economic, financial, and political developments.
Accurate information permits lenders and investors to make informed decisions.
The IMF has a major role in improving the quality and increasing the quantity and timeliness of country data. Publication of reports of IMF missions and the IMF's recommendations is a welcome development. Improved information reduces uncertainty and improves lenders' decisions. Release of information encourages reform and permits investors to make continuous marginal adjustments instead of rushing to exit when anticipations change quickly. Further, improving information and opening the economy to foreign banks reduces reliance on renewable, short-term loans.