our region. the nordic - baltic constituency includes countries either inside or closely linked to the european union, and for that very reason we have a wider interest on the issue. having been personally involved in european cooperation for a long time, i appreciate the “ outsider view ” that the fund can bring to the european discussion. of course, becoming better at multilateral and regional surveillance is dependent on the quality and efficiency of bilateral surveillance. the fund staff ’ s own report, together with the independent evaluation office ’ s ( ieo ) report on the fund ’ s role in argentina, served as an eye - opener for many of us. the evaluation report makes a convincing case concerning the shortcomings of surveillance in this instance. i quote, “ little substantive discussion took place with the authorities on whether or not the exchange rate peg was appropriate for argentina over the medium term, and the issue received scant analysis within the imf ” unquote. the fund gave the authorities the benefit of the doubt for too long and did not acknowledge that temporary positive developments were not supported by structural changes. none of us want to see a repetition of this, and therefore we need to emphasize reform and insist on having structural issues of macroeconomic importance adequately addressed in fund surveillance and programs. … while further improving internal governance the evaluation report also shows that there is a need for further discussion on how to enhance internal decision - making and ensure that our representatives in the executive board are fully informed about all issues relevant to the decision - making process. critical decisions are, however, sometimes made outside the board. this undermines the ability of the board to exercise the powers that we as governors have given them. it also calls into question the accountability of this institution. on top of this, it may weaken the credibility the fund vitally needs. in this respect the clarity that the exceptional access criteria bring to decision - making is most welcome. the use of this promising vehicle has been limited to date. the exceptional access criteria focus on the early involvement of the executive board. a well - informed and alert board is the best guarantee that the staff and management do not prejudge the board ’ s decisions. it is up to all parties concerned to make sure that the agreed rules are followed. enhancing the voice and participation of developing countries in the fund ’ s decision - making process is another important area. the nordic - baltic constituency is in favour of improving developing countries ’ participation in international fora and is ready to consider realistic measures to achieve

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