On September 19 the IMF released its biannual economic outlook, which forecast stronger economic growth in all the major world regions, but noted the dangers posed by higher oil prices. IMF efforts to help develop better systems for monitoring and regulating the global financial system gained prominence after the outbreak of the Asian financial crises in July 1997.
Most analysts believe lack of transparency and poor regulation contributed to the crises.
The IMF has the promotion of financial stability as its primary task, while the World Bank's focus is on development assistance for poorer countries. Koehler said he thought it would be possible to bring 20 countries to the mid-way point in the program by the end of this year. In the HIPC program, the countries agree to implement reforms in exchange for the writing down of debts they owe to the international financial institutions and donor governments. Debt relief is only one part of helping countries fight poverty, Koehler added. The countries need strong, noninflationary growth, trade liberalization, official development assistance and they must take steps to curb corruption, bad governance and end armed conflicts, he said.