Bali, Indonesia - World leaders, finance ministers, heads of banks and nongovernmental organizations begin the Annual IMF and World Bank Meetings held this year in Indonesia. Ahead of the meetings the IMF issued stark warnings that another global financial crisis could be on the horizon. As the meetings kickoff, the currency of Indonesia hit lows reminiscent of the devastating "Asian Financial Crisis" of the 1990s.
"While we are dealing with a different situation since the last time the Indonesian Rupiah hit these terrible lows, the ghost of financial crisis haunts this year's IMF and World Bank meetings in Bali," noted Jubilee USA Executive Director Eric LeCompte, who tracked IMF and World Bank meetings for the last decade. "The IMF is saying our economy is stable now, but there are some serious risks to stability on the horizon and global inequality is on the rise."
The International Monetary Fund released two reports this week on the state of the global economy. Both the IMF Global Financial Stability Report and World Economic Outlook Report raise concerns around risky behavior and a lack of financial transparency spurring future crisis.
"A lack of transparency in the financial system and in government budgets is a serious concern around the world," shared LeCompte who serves on UN finance expert groups. "In Indonesia, a lack of budget transparency meant that hundreds of people recently lost their lives from a tsunami when the government did not make minimal investments to repair their tsunami detection system."
LeCompte's organization, Jubilee USA, has organized a high-level event for October 12th during the Annual Meetings which focuses on budget transparency and financial crisis prevention. The event will further explore the need for economic aid and debt relief when countries experience economic shocks or natural disasters. Speakers include Finance Ministers and senior staff from the IMF, G-24 and the Vatican.
Read more about Jubilee USA's Panel at IMF Meetings
Read in Indonesian about Jubilee USA's Panel at IMF Meetings
Read the Global Financial Stability Report