This year 2025 marks the 80th anniversary of the establishment of the IMF. Minister Kato sent a video message to the opening session of the Event: "Asia and the IMF: Resilience through Cooperation", held by the IMF at this occassion of the anniversary.
Good morning, everyone.
I am honored to give an opening remark for the event, “Asia and the IMF: resilience through cooperation.” I sincerely welcome that this event, which further deepens cooperation between the IMF and Asian countries and envisions the future of the fund, is held on the occasion of the 80th anniversary of the establishment of the IMF, at here, in Tokyo. Also, upon opening up the event, I would like to show my respect to Dr. Georgieva for her contribution in stabilizing the world economy with strong leadership, and I would like to thank all the staffs from IMF headquarter and the office of Asia and pacific for their efforts to realize this event. Up to now, based on the idea that strengthening free and open international economic system contributes to the development of the world economy as well as Japan’s national interest, Japan has supported the international financial system as the partner of IMF, not only on a daily operational basis as the second largest shareholder, but also in the face of crises. For example, at the time of the Global Financial Crisis, Japan led the world in concluding a Bilateral Borrowing Arrangement equivalent of 100 billion dollars with IMF to strengthen its resources, and contributed in strengthening the Global Financial Safety Net. Also, when the COVID-19 pandemic spread worldwide in 2020, Japan backed the IMF’s strong support towards low-income and vulnerable countries under economic crisis, through rapid and voluntary financial contribution. In addition to these contributions under crises, Japan has supported the IMF’s concessional lending facility for low income countries and capacity development, as a top donor for a long time. I strongly believe that our support to the IMF, both in normal times and during crises, has contributed, not only to solve problems of target countries but also to stabilize the international monetary and financial system, which is essential for the growth of the world economy, including Japan.
Turning to the current situation of the world economy, we see various structural transformations and uncertainties: intensifying natural disasters, both in terms of their scale and frequency due to climate change, heightened geopolitical tensions, global demographic changes, and disruptive technological innovations. Last year October, when I attended the Fiftieth International Monetary and Financial Committee Meeting held in Washington D.C., I stated that, “Under the huge transformation of the world economy, as this year marks the 80th anniversary of Bretton Woods, this is the perfect opportunity to start the discussion of IMF’s future role and its characteristics from a long-term perspective.” As I have heard that this event also covers such topics, I would like to present some perspectives that I consider as important. To start with, even though the global economy transforms, the fundamental role of the IMF will not change. Namely, IMF’s mission, which is to solve issues that affect the balance of payments of member countries, as the center of the Global Financial Safety Net, through coordination with other institutions, should be maintained. On top of that, to fulfill its unchanging mission effectively while adapting to the transforming exogenous environment and diversified members countries’ needs, the IMF should constantly review its available facilities and continuously polish them. From this perspective, I believe the three following points as important. Firstly, addressing the needs of low-income countries and small island states, which are the most vulnerable to various shocks, should be positioned as the central function of the IMF. On top of that, we should reconsider whether the IMF’s current system is fully responding to the needs of these countries. Secondly, balance of payment needs faced by countries vary from immediate to medium- and long-term, as well as from actual to potential, stemming from exogenous factors or domestic structural issues. Given such varieties, the IMF should be able to address the full spectrum of various balance of payment needs. Thirdly, the perspective to strengthen the IMF’s institutional foundation that support its operations is necessary, considering the heightened uncertainty around the world economy. For example, if the IMF’s support for low-income countries and vulnerable small island states is positioned as core functions, their financial self-sustainability should be further enhanced. From this perspective, we propose to discuss broadly on further measures, such as further utilizing GRA net income/reserve or methods to reflect members’ voluntary financial contributions in the governance of the IMF.
With these points in mind, I expect everyone participating in the event to have “outside of the box” discussions on the future of the IMF, without being bound by existing frameworks.I would like to conclude my message, hoping that this event will mark a new chapter in the relationship between the IMF, that celebrates its 80th anniversary, Asia and Japan.
Thank you for listening.