Let me say a few words about each of these. First, these programs focus on economic reforms to address the specific causes of each nations' crisis and lay the basis for recovery by strengthening financial systems, improving transparency and supervision, eliminating the interrelationships between banks, the government, and commercial entities, opening capital markets, and instituting appropriate monetary and fiscal policies. These are not austerity programs, they focus largely on structural reforms. Second, if necessary, we support these programs of reform with temporary financial assistance to provide breathing room for a nation to restore economic confidence, attract private capital and resume growth. Mr. Chairman, let me stress that financial assistance, while critical for a short period, is not the key.
Reform is the key.
These IMF resources need to be put in place as quickly as possible to enable the international system to respond to a worsening and spreading of this crisis, or to deal with future crises, either of which could dramatically affect the interests of the American people. The likelihood of such developments may be small, but let me emphasize, the consequences could be immense. We cannot afford to take that risk. Moreover, failure to provide these resources could shake confidence in American leadership in the global economy just at a time when confidence and American leadership are so important in re-establishing stability in Asia. Our contribution to the IMF does not result in a budget outlay.