Periodic attempts have been made to revive the AMF idea, but all eventually have lost steam in the face of resistance from the Clinton administration and elsewhere. However, the discussions that did occur helped to develop the necessary backing for the current agreement, the first of its kind to show real promise. Notably, a joint statement issued after the ADB meetings carefully pointed out that the Chiang Mai Initiative is designed to complement, not replace, existing international financial-support mechanisms. Although American objections to an East Asian self-help facility may have softened, they have not been entirely eliminated. A senior Department of the Treasury official who attended the annual ADB meetings indicated that while Washington tentatively supports the Chiang Mai Initiative, it is waiting for additional information before providing an official reaction.
Skeptics caution that much work still needs to be done.
Asean's secretariat was tasked with hammering out the details, but it was given no deadline or timetable. Not surprisingly, Mr. Miyazawa praised the Chiang Mai Initiative. He suggested that regional monetary cooperation would lead to improved regulatory frameworks, better accounting systems, enhanced transparency and, ultimately, stronger economies in East Asia. Western critics tempered their comments with the caution that a currency-protection plan is no substitute for reform. According to them, stable banks, good corporate governance and sound economic policies are the keys to crisis prevention.