British premier Gordon Brown has called for major reform of the International Monetary Fund, saying the body is not able to tackle the global financial crisis.
The comments came ahead of a pre-G20 warm up summit being hosted by Chile’s President Michelle Bachelet. Speaking in the Chilean city of Vina del Mar, Brown said the IMF was not able to respond to the world’s current needs. ‘‘We cannot have an International Monetary Fund that simply deals with the balance of payments crisis in individual countries. That was the old world. We need an international institution, a new International Monetary Fund, that can deal with global and not local competition, international flows of capital, not just natural flows of capital and global open economies and not just the sheltered economies of the past. So we must reform the International Monetary Fund,’‘ said Brown. The British prime minister, who is in Chile to drum up support for next weeks G20 summit in London, is also set to meet Argentina’s president Cristina Fernandez. But Brown has been quick to dismiss claims that the sovereignty of the Falkland Islands is up for discussion.