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'Currency crisis temporary, but lesson for future'
HONG KONG. Sept 26: Southeast Asia's currency falls, and the forest fire ashes polluting the region’s air are temporary crises, but it's important to remember to fight the causes when the dramas are over. World Bank President James D Wolfensohn said Thursday, reports AP.
"One thing the Bank is doing constantly now is taking on new initiatives, whether or not we re asked." Wolfensohn told reporters on the final day of the bank's annual meetings with the International Monetary Fund, central bank governors and finance ministers from 180 countries.
"We have a really tragic situation going on near us in this region," Wolfensohn said, referring to the thick air pollution covering parts of Indonesia. Malaysia, Singapore and Brunel, caused by the out-of-control burning of rain forests in Indonesia.
"We're ready to come in if money is necessary, but money
doesn't appear to be the problem." Wolfensohn said. Environmental crises, like currency crises, tend to grab headlines, then disappear from public memory, he said. "Were going to try to keep reminding them."
He said he had invited the leaders of the timber companies of the world to a meeting to discuss how to prevent such crises in the future.
In the same way. he said, although the Southeast Asian currency and stock market fluctuations were one focus of the three-day IMF-World Bank meetings, perhaps more Important were the discussiohs with Mexico on the programms it continues to implement in the wake *tS currency col,aPse in
In the Southeast Asian markets. "what we see at the moment is not a new trend. It's a temporary setback." Wolfensohn said. "We'II soon be back on the path of stability."
The Mexican crisis had affected markets from India to Poland. "People were saying, it's
the end of the world." Wolfensohn said. But in Hong Kong "good discussions were held with the Mexicans about continuing the programmes that have brought stability to Mexico and the region."
Thailand, where the Southeast Asia market tumble began this summer, received a large IMF-sponsored bailout loan in July, much like Mexico did to bail It out of its crisis.
Wolfensohn said the successes of the IMF-World Bank meetings were the discussions on poverty and support from all the ministers of the bank's intention to ensure that its development aid projects are free of corruption.
The task of managing corruption is the task of the governments." he said. "The Bank is not a world government." He said that when governments indicate they are interested in transparency and openness, the Bank will be helpful. "When they are not. we will continue to ask questions." he said.