In the current situation of extraordinary strong growth rates policy mix considerations require special attention. Although most of the Asian and Latin American countries seem to have recovered from the financial distress at the end of the last century, they still need to address the underlying causes of the crisis. In light of the recovery in Asia, moderation of stimulative budgetary and monetary policies is recommendable. Future challenges include further financial sector reform, corporate restructuring and broader institutional, legal and regulatory reforms supporting market-based activities. In Latin America, fiscal consolidation needs to be pursued, as high external debt ratios are still abundant.
Japan seems to be recovering, albeit slowly.
The authorities need to push forward with the intended structural reforms, the deregulation and liberalization of the financial sector in particular. The events that took place in Kosovo last year have had negative effects on other countries in the region, many of which are in my constituency. I would like to call on the IMF to continue its enhanced support in the form of programs and assistance to the affected countries. The Netherlands have been able to reap the rewards of deregulation and an improved functioning of the markets, as can be witnessed from the high growth, low inflation and low unemployment during the last few years.