Thursday, June 23rd 2011 - 22:49 UTC

Former IMF head admits to made many silly mistakes and errors with Argentina

Former managing director of the IMF, Michel Camdessus admitted Thursday in Buenos Aires that during his time working for the organization, they 'made many mistakes with Argentina,' particularly highlighting the 90s.

Michel Camdessus was IMF Managing Director from 1987 to 2000

“We probably made many silly mistakes and committed errors with Argentina, but finally the debt problem has been resolved, even though it took a long time” sustained the French economist, who headed the International Monetary Fund between 1987 and 2000.

Camdessus made the statements during a speech at the 14th Annual Meeting of the Christian Association for Company Directors (ACDE) which took place in a Buenos Aires downtown hotel. Camsessus also participated in a panel on “Argentina: challenges for a sustained progress”.

The Camdessus IMF period was marked by the so called ‘Washington Consensus’ and the Argentina of former president Carlos Menem was repeatedly praised for its privatization and open market policies plus the stabilization plan based on a fixed exchange rate of 1 dollar/1 Argentine Peso stabilization program.

However this chapter rapidly led to one of Argentina’s worst economic, political and social crisis with the collapse of the elected government, the melting of the economy forcing a major default in 2001 of over 100 billion US dollars.

The restructuring of Argentina’s defaulted sovereign bonds was done in two chapters, 2005 and 2010, while in 2006 then President Nestor Kirchner repaid all pending debt with the IMF and virtually cancelled all links.

With regard to the topic, the former IMF managing director estimated that “80% of the global economic growth,” over the course of the next forty years, “will come from the development of emerging countries, like Argentina,” also considering that during this time the dollar will cease to dominate the monetary system and global finance.

“We can expect that by 2050; close to 80% of global economic growth will be a result of emerging countries. Today, many of these countries are reducing the gap with more developed nations, developing their middle class and bettering their quality of life”.

Camdessus acknowledged that “current neo-liberalism is extremely short regarding institutions and regulations”. However the former IMF head also underlined that a “State must establish clear continuity and predictable rules plus transparency and efficiency from the regulating offices”.

8 comments Feed

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1 ElaineB (#) Jun 23rd, 2011 - 11:19 pm Report abuse
“Many silly mistakes”!!! How can pulling the financial rug on an entire country be considered a 'silly mistake'. Sure Argentina was partly culpable by refusing to work with the IMF to resolve the situation but what the IMF did was unforgivable. IMO. And don't get me started on the bond traders......
2 briton (#) Jun 23rd, 2011 - 11:25 pm Report abuse
I agree with you.
But sadly some argies will blame us,
the british will get the blame [AGAIN]
3 Artillero601 (#) Jun 23rd, 2011 - 11:46 pm Report abuse
I don't think so ....
4 ptolemy (#) Jun 24th, 2011 - 06:04 am Report abuse
Hindsight is always 20-20.
5 Fido Dido (#) Jun 24th, 2011 - 07:37 pm Report abuse
the bond traders (Goldman Sachs, JP Morgan Chase, Citi, HSBC etc etc=The Federal Reserve=IMF/WORLD bank=DEBTOCRACY
6 NicoDin (#) Jun 25th, 2011 - 10:15 am Report abuse
@Fido Dido

Have you read Fido Confessions of an Economic Hit Man?

The third world countries are left holding a huge debt...Economic Hit Man goes to the country and say can’t pay your debt... vote with us in the next critical UN vote or send troops in support of our to some places in the world like Iraq... Umm

Any similarity with brainwashed Mohammeds situation its just pure coincidence

: )
7 GeoffWard (#) Jun 25th, 2011 - 05:31 pm Report abuse
Ptolemy #4,
if hindsight is always 20-20,
why do Argentineans have a very different hindsight from that of TFI & the UK?
Because hindsights are always conditioned by xenophobia, partial histories and blinding predjudices.

In the face of all these conditioners (and many others), hindsight does not stand a chance.
8 Fido Dido (#) Jun 26th, 2011 - 03:28 am Report abuse

Have you read Fido Confessions of an Economic Hit Man?
Yes, great book.
Correction. it's not just brainwashed mohammeds, but brainwashed mad mohammeds.

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