IMF to follow multiple policies for promoting growth

The International Monetary Fund (IMF) has placed importance on multiple polices instead of its current approach to facilitating economic growth.
"I would suggest not a single policy but multiple policies because it will have to be country-specific, and there is no one-size-fits-all," said Christine Lagarde, managing director (MD) of the IMF.
She was addressing Thursday the opening press conference of the IMF and the World Bank's spring meetings here.
However, the IMF would recommend policies maintaining two-key principles -do no harm and do the right thing, considering the member countries' needs.
"The key is to avoid wrong policies, and this is especially the cause for trade," the IMF chief noted.
Trade integration has helped boost economic growth, reduce poverty, and lift productivity and employment around the world.
"At the same time, we know that this engine of prosperity needs to be fixed," Ms Lagarde said.
The IMF boss also said: "We need to better address unfair trade practices and distortions in the system, including through a WTO system reform."
"And we need to avoid self-inflicted wounds, including tariffs and other trade barriers," she noted.
The Fund released its Global Policy Agenda (GPA) 2019 that has been called 'a new multilateralism' for expediting international cooperation, economic and financial integration and technological progress.
The concept of the new multilateralism hinges on three complementary and reinforcing areas of policy action: domestic policies to build more resilient economies and promote economic opportunities, upgrading global cooperation that will provide a more level playing field across borders, and a commitment to work together on global challenges.
The multilateralism has domestic implications, cross-border implications, and an international cooperation imperative with a strong focus on the people, according to the IMF MD.
Regarding fiscal recommendation, she urged countries to rebuild their fiscal buffers that are essential for many developing countries.
"Not all. Those are in the situation of fiscal surplus at the moment certainly should make use of it and have the space to invest and to participate in the economic development and growth, but not enough has been done on that front and that is what markets are seeing," Ms Lagarde said while replying to a question.
The IMF chief also recommended the monetary authorities stay accommodating for facilitating the fiscal measures that need to be taken.
The policy agenda said rising disengagement comes at a time when the world is facing challenges from rapid technological advancements, uncertainty about the future of work, demographic shifts, environment degradation and climate change.
"These challenges can be met in a new multilateralism that instills confidence that the costs and rewards of lasting solutions will be shared by all," it noted.
The agenda also said it falls on policymakers to reorient domestic and international policies to better manage the economic and social consequences of international integration and technological advancement, while being mindful of the global footprint of their actions.
The spring meetings have been attended by more than 2,800 delegates from 189 IMF member countries, 350 observer organisation representatives and 800 members of the press.
Some 550 accredited civil society members are also participating in the semi-annual meetings.

[email protected]