Some issues which may warrant closer examination include: •  Ensuring that resources in the Poverty Reduction and Growth Facility – our main lending instrument for developing countries – remain adequate to meet future demands;  •  New ways to help low-income countries deal with economic shocks;  •  In the case of low-income countries which do not need or want IMF lending, how to enhance the IMF’s role in signaling to others the strength of these countries’ policies;  •  The role of the Fund in supporting low-income countries’ poverty reduction strategies; and  •  Our relationship with donors and aid agencies. As a partner of the 2002 Monterrey Consensus, the IMF is committed to supporting countries in their efforts to reduce poverty and reach the Millennium Development Goals. Our unique position gives us the potential to contribute to building both pillars of the Monterrey Consensus. On one side, we can work with countries to design policies and build institutions that will help them grow out of poverty. On the other, we can advocate for more and better international support, and help with its coordination. Nevertheless, examining the issues highlighted earlier will help frame a better understanding of the areas of low-income country work for which the IMF can take responsibility, and those that will fall to other institutions and actors. It would be helpful to have greater definition in this area as we approach the U.N. Millennium Summit in September. Fifth, the IMF’s internal governance and management.
This is no easy task in the present situation. The labour market is quite different today than it was 5-10 years ago. Unemployment is relatively low and there is a labour shortage in some parts of the economy, despite the slowdown in economic activity. Moreover, there are tendencies towards demands for compensation, which, if they were to spread, could provide further complications for wage formation. The trends with regard to labour supply are also worrying. Demographical developments, such as an increasing number of elderly people over the coming decade, will create a demand for more employees to work in geriatric care, for instance. At the same time, the number of persons available on the labour market is declining. An addition problem is the high frequency of absence due to sickness. It is evident that a central target for economic policy should be to get more people in work. This would facilitate wage formation and create greater scope for economic growth in future. This is perhaps just as important a theme for a hearing in the Committee on Finance as wage formation in itself. It concerns measures that are largely in the hands of the Riksdag. Thank you!