FROM THE OFFICE OF PUBLIC AFFAIRS

It is a pleasure to join colleagues for my first IMF and World Bank Spring Meetings

Although global growth has slowed since last fall, it is important to focus on the sound foundation for recovery that is already in place and take further steps to strengthen prospects.

While the U.S. economy has slowed, I have confidence in its resilience. Economic fundamentals - productivity growth, the flexibility of our labor and capital markets, and low inflation - remain strong. The slowing economy reinforces the need for immediate and permanent tax relief to undergird more vigorous economic growth. Others, too, need to contribute to strong global growth. Japan and Europe have work to do as well. And developing countries also need to do more to lay the foundation for a bright future. A healthy global economy requires all of us to perform to our full potential.

We must all focus on the challenge of working together to forge the most effective IMF possible. I also believe that we need to create an institution that is ever more focused, effective and accountable. I envision an IMF that, while sharpening its ability to respond to financial disruptions swiftly and appropriately, does so less frequently because it has succeeded in preventing crises from developing in the first place. This means making clear diagnoses of problems that are still at an early stage and taking the proper policy steps before a problem turns into a crisis.

The ongoing review of conditionality offers further opportunities to set priorities for the Fund's endeavors. I look forward to further discussion to ensure that key issues receive full consideration. It will be particularly important to consider a number of questions, such as, how to achieve country ownership of high quality programs, how to promote selectivity in lending, how to ensure that programs address macroeconomically relevant challenges facing countries, and how to maintain the integrity and accountability of the Fund.

I also want to highlight recent progress at the Fund in the ongoing fight against financial abuse. Anti-money laundering efforts are critical to the integrity of the international monetary system, which is central to the IMF's role. I welcome the recent decision in the Fund to recognize the Financial Action Task Force standard for combating money laundering that has been endorsed by countless international groups representing a significant majority of countries.

In closing, I want to stress one current that should run through all of our efforts to strengthen the effectiveness of the IMF - enhancing transparency and accountability. The days are long past when the work of public institutions could be largely shielded from public view. I look forward to meaningful discussions on how we can make further progress on these important issues.