Press Release No. 10/217

Press Release: IMF Managing Director Dominique Strauss-Kahn Says Peru Sets Example to Others, Discusses Regional Outlook

May 27, 2010

Peru sets an example to other emerging markets of how to reach a fast track of growth and poverty reduction by carrying out strong economic policies, International Monetary Fund Managing Director Dominique Strauss-Kahn said today in Lima.

“With a recovery underway that will see growth in Peru of between 6-7 percent this year, the challenge now is to manage success by continuing the timely and gradual phasing out stimulus and avoid the build-up of inflationary pressures, which hit the poor hardest,” Mr. Strauss Kahn added after discussions with President Alan García, Minister of Economics and Finance Mercedes Aráoz and President of the Central Reserve Bank Julio Velarde.

Responding to the decision today by Peru to give final approval to the 2008 amendments of the IMF Articles of Agreement, Mr. Strauss-Kahn said, "This is a welcome decision. The amendment is a landmark reform in the governance of the IMF that gives dynamic emerging market economies and low-income countries a bigger voice in the IMF."

Mr. Strauss-Kahn discussed the outlook for the region in a roundtable with Minister Mercedes Aráoz, and the finance ministers of Bolivia, Luis Arce, of Mexico, Ernesto Cordero, and of Uruguay, Fernando Lorenzo. “The global economic crisis demonstrates how Latin America has turned a corner, “Mr. Strauss-Kahn said.  “Thanks to adept management of their economies in recent years, the countries of the region were able to cushion their populations from the adverse effects of themselves against the downturn and bounce back quickly.”  Another positive change is that growth throughout the region has been accompanied by a fall in poverty and social inequality. The televised discussion, hosted by America NTV-Canal Sur, will be broadcast throughout Latin America from May 30.

Mr. Strauss-Kahn also answered questions from students from Peru and other countries in the region at a townhall meeting hosted by Lima’s Universidad Nacional Mayor de San Marcos. “The strength of this region is in its youth. I want to understand the concerns of the future leaders of Latin America,” Mr. Strauss-Kahn said.  The event was the culmination of an “Ask the IMF” campaign, run in collaboration with the Consorcio de Investigación Económica y Social and Peru’s El Comercio newspaper, in which 600 young people from Latin America posed 1,000 questions over 10 days to Mr. Strauss-Kahn.   

During the final day of his two-day visit to Lima, Mr. Strauss Kahn will address the Third Meeting of Finance Ministers of the Americas and Caribbean on May 28.