Low-Income Countries in Asia and the Role of the IMF Wanda Tseng Deputy Director IMF Asia and Pacific Department September 14, 2006

Outline Recent performance of low-income PRGF countries in Asia Key policy challenges Role of the Fund

Low Income Countries in Asia

Growth performance has been generally encouraging.....

And the region as a whole have already met the MDG poverty goal.

There are also encouraging signs of progress on human development indicators.

Some Caveats, however, ............ Gains in poverty reduction have not been always even Global environment could become less benign Suspension of the Doha Round trade talks is a set back Avian Flu pandemic

... and a large development gap remains.

Further growth and poverty reduction Key Policy Challenges Developing human capital Maintaining sound macroeconomic policies Further growth and poverty reduction Building strong institutions

Case study I: Vietnam What was the issue? Support for the Doi-Moi reform program How did we help? Intensive support under IMF financial programs (1994-2004). Technical Assistance General policy advice

Case study II: Cambodia What was the issue? Strengthening public finances How did we help? Technical Cooperation Action Program, designed jointly with the authorities and donors.

Case study III: Bangladesh What was the issue? Expiration of quotas under WTO’s Multifiber Agreement How did we help? IMF lent Bangladesh $78 million under the Trade Integration Mechanism in April 2004.

Thank you