"Circumstance has handed the IMF the chance to prove its inherent worth to its members. Hopefully the organisation will take it."When I wrote that on 27 October about IMF conditionality and the luggage the dogma was producing for the organisation it was without believing a scant 2 days later this press release (or any sort of suppleness at all) would appear.
This is a huge and welcome departure from trend and potentially a key weapon to defend developing/emerging markets against credit crisis fallout: it puts content ($100bn) where before there was mainly style. Conditionality is not going anywhere. But under this facility it is now, as circumstance demands, more pragmatic, less dogmatic and carries less (if any) of a stigma.
Well worth listening through Mr Strauss-Kahn's press conference (click image below for link) and reading this analysis by the Wall Street Journal. The Managing Director's comments on stroppy, IMF-hating Argentina, from 7'30" to 9' 36"are particularly diplomatic (and entertaining).