nomic and exchange rate policies. The question was not exchange systems, can enhance economic performance, so much one of capital account liberalization having but without simultaneous moves to strengthen finan- been too fast, since some of the countries in Asia fol- cial institutions, they can also contribute to banking lowed a gradualist approach. Rather, successful opening crises and other economic problems. of the capital account appears to call for coordinated and Financial reforms involve monetary and portfolio concurrent reforms irrespective of the pace of reforms. shocks. To prevent such shocks from leading to financial crises, policymakers should introduce indirect instru- Conclusion ments of monetary control early, strengthen financial Financial sector reforms require mutually supporting institutions, and implement prudential regulation and reforms in a number of areas, the study concludes. supervision, according to the study. A mix of these Reforms to certain sectors, such as monetary and instruments can help ensure adequate monetary control and support financial market development. The study recommends that capital account liberal- Duisenberg to deliver ization be approached as an integrated part of compre- Per Jacobsson lecture hensive reform strategy and should be paced with the implementation of appropriate prudential measures Wim Duisenberg,President of the European Central Bank,will and macroeconomic exchange rate policies. deliver this year’s Per Jacobsson lecture “The Past and Future of Countries that implemented successful financial sector European Integration—A Central Banker’s View.” The lecture reforms and avoided financial crises significantly boosted will be given on September 26, 1999, at 3:00 p.m. at the Omni Shoreham hotel in Washington, D.C. The lecture takes place their economic performance. Those that experienced two days before the formal opening of this year’s IMF–World financial crises, however, suffered a decline in perfor- Bank Annual Meetings. mance. The study’s finding argues forcefully for ensuring A national of the Netherlands,Duisenberg has been the pres- that financial reforms, when undertaken, be properly ident of the European Central Bank since its establishment on managed and implemented with requisite attention to June 1, 1998. Prior to that, he was president of the bank’s pre- both stabilization and financial system soundness. cursor, the European Monetary Institute. In the course of a dis- tinguished career in the international monetary field, he has Jeffrey Hayden IMF External Relations Department served as president (1982–97) of the De Nederlandsche Bank— the Netherlands central bank — and as its executive director Copies of Sequencing Financial Sector Reforms: Country (1981–82). He was chairman of Experiences and Issues, edited by R. Barry Johnston and the board and president of V. Sundararajan, are available for $27.50 each from IMF the Bank for International Publication Services. See page 284 for ordering details. Photo copyrighted, Settlements from 1988 to 1990 and from 1994 to 1997, as well not available as a member of the bank’s Photo Credits: EPA-Hurriyet for AFP page 273; Denio board of directors (1982–97). Zara and Padraic Hughes for the IMF, pages 274, 280, He also served as his country’s and 288; and Ralph Orlowski for Reuters, page 282. minister of finance from 1973 Artwork: Massoud Etemadi page 286. to 1977 and was a member of parliament for the socialist party from 1977 to 1978. Wim Duisenberg, Selected IMF rates Duisenberg is a graduate of the University of Groningen, where European Central Week SDR interest Rate of Rate of Bank President. he was awarded a Ph.D. in 1965, and a former staff member of beginning rate remuneration charge the IMF. August 16 3.36 3.36 3.82 Established in 1964 in honor of the third managing direc- August 23 3.38 3.38 3.84 tor of the IMF, the Per Jacobsson lectures are usually held The SDR interest rate and the rate of remuneration are equal to annually and are designed to promote informed international a weighted average of interest rates on specified short-term domestic obligations in the money markets of the five countries discussion of current issues in monetary affairs. whose currencies constitute the SDR valuation basket (as of * * * January 1, 1999, the U.S. dollar was weighted 41.3 percent; euro (Germany), 19 percent; euro (France), 10.3 percent; Japanese Attendance at the Per Jacobsson lecture is by invitation yen, 17 percent; and U.K. pound, 12.4 percent). The rate of only and is restricted for reasons of space. Persons interested remuneration is the rate of return on members’ remunerated reserve tranche positions. The rate of charge, a proportion (cur- in being added to the invitation list should write to rently 113.7 percent) of the SDR interest rate, is the cost of using The Secretary the IMF’s financial resources. All three rates are computed each Friday for the following week. The basic rates of remuneration Per Jacobsson Foundation and charge are further adjusted to reflect burden-sharing International Monetary Fund arrangements. For the latest rates, call (202) 623-7171 or check the IMF website (www.imf.org/external/np/tre/sdr/sdr.htm). 700 19th Street N.W. Data: IMF Treasurer’s Department August 30, 1999 Washington, D.C. 20431 282 ©International Monetary Fund. Not for Redistribution .