MercoPress. South Atlantic News Agency

Brazil blasts IMF

Brazilian president Fernando Cardoso accused the International Monetary Fund of “using questionable methods for accounting countries debts” and made an appeal to strengthen regional economies, particularly the Mercosur block.

Addressing the Chilean Congress in Valparaíso Mr. Cardoso stressed that "globalization must be at the service of the common citizen" and condemned what he described as current asymmetries that "enable large countries with greater influence over multinational credit institutions, to act with a total absence of political sensitivity". <'>"The current IMF debt accounting policy makes it extremely difficult for the smaller countries to attract new credits and investments", said President Cardoso.

Further on Mr. Cardoso indicated "a strong cohesion" was essential for Mercosur, adding that leaving aside Argentina's financial problems, "Mercosur objective is to ensure a coordinated and competitive insertion of our economies in world markets".

"The more integrated our countries, the greater the credibility of our demands for a symmetrical hemispheric understanding that benefits equally all of us", said Mr. Cardoso in direct reference to the US sponsored Free Trade Association of the Americas.

The Brazilian president stressed that fairer trade conditions meant a "greater access to the US market" and anticipated Brazil would seek a greater symmetry during the next World Trade Organization negotiation round.

Mr. Cardoso also blasted "speculative" financial capital that recently but recurrently attacked countries such as Argentina, Brazil, Mexico and Southeast Asia and said he expected the Development Financing Summit in Monterrey will give the issue all the necessary attention and time.

Finally in reference to world efforts to support democracy and governance, Mr. Cardoso recalled that "what has always been missing is sensitivity from the large countries that have a dominating influence in multilateral credit institutions".