Third world calls for IMF substitute

Economists and academics representing the third world have called for more flexible guideline policies of the International Monetary Fund (IMF) and the establishment of a new international bank that can substitute or supplement the U.S.-based institute in supporting development schemes of small countries, Thai news agency TNA reported.

A leading economist said at the 10th Session of the United Nations Conference on Trade and Development (UNCTAD X) that IMF strict policies to countries hit by the regional crisis over nearly the half three years could not help resolve problems, and had, instead, spread the turmoil to other areas.

The IMF should, therefore, be flexible in imposing control measures on the financial, fiscal and marketing systems of the crisis-stricken countries, he said.

Some of the economists called for more transparency in IMF policies and performances, as some others proposed that the U.S.-based institute push efforts to prevent collapses of local currencies of developing countries.

One of the leading economists proposed that a new international bank be established to substitute or supplement the IMF in supporting development schemes of small countries.