IMF AND WORLD BANK: Seven-point plan to save the world

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IMF AND WORLD BANK: Seven-point plan to save the world

The great and the good have come up with a seven-point plan to stave off financial crises and benefit the developing world. Are they building castles in the air or laying the basis of a new financial architecture? James Smalhout reports

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The Mexican crisis, the Asian contagion, meltdown in Moscow and more recently the Brazilian turmoil each hit the financial community like thunderbolts. Naturally officials were expected to come up with an equally earthshaking fix. What emerged hardly suited the temper of the times. It was downright dull by comparison. And that turned into a bit of a problem for the powers that be.

The moment finally came for Bill Clinton to call on some heavy-hitters from far above the pay grades of finance ministers and central bankers. The US president did so during a speech last September to America's prestigious Council on Foreign Relations (CFR).

As a result, Peter Peterson, the New York financier and philanthropist who serves as CFR chairman, put together a team from the A-list of corporate chieftains, Wall Streeters, academics, labour people and politicians. That's the one thing that sets this task force apart from the rest of the "financial architecture" debate. "This is one of the most important and potent groups ever put together by the Council," says CFR president Leslie Gelb.


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