Abstract

1988 Combined Annual Meeting of the International Monetary Fund and the World Bank Group in West-Berlin

At the end-September 1988 combined annual meeting of the International Monetary Fund (IMF) and the World Bank Group in West-Berlin, the problems encountered by the highly indebted developing nations clearly dominated the scene. This subject kept official participants busy as well as the members of international creditor banks, who were again present in large number, and played a prominent role in the discussions at the periphery of the annual meeting at protest gatherings and public demonstrations. It was the first time that the pros and cons of foregiveness as a contribution to overcoming the financial problems with which the highly indebted developing countries have been struggling for six years were discussed in all frankness at an IMF/World Bank annual meeting. General satisfaction was expressed at the meeting about the greatly improved economic situation of the industrial countries and about the resultant positive effects on the developing nations. The risks of inflation that have again moved to the foreground as a result were mentioned in a clear manner. One cause for concern among others is the possibility that the reduction of the pronounced external economic imbalances may have begun to falter. The associated risks place high demands on the willingness of individual countries — notably the USA – to take economic policy action and to cooperate internationally. The October 1987 crash on financial markets is still all too fresh on the minds of all concerned.