Kevin J Kelley
12 October 2008
New York — The International Monetary Fund should have anticipated and acted to address the crisis destabilising global markets, Finance Minister John Michuki said on Saturday at the IMF annual meeting in Washington.
Mr Michuki also blasted the rich nations for stumbling into a "debacle" that will harm Kenya and other developing nations.
"Who is going to compensate the innocent countries that are likely to suffer from this debacle through no fault of their own?" he asked.
Mr Michuki suggested that sanctions should be imposed on those countries responsible for triggering the crisis.
He noted that international financial institutions place sanctions on countries that "look delinquent" in meeting their obligations.
The IMF failed in its responsibilities to help maintain discipline in financial institutions, Mr Michuki added.
"The surveillance that should have been put in place from the IMF...appears not to have been applied with certain members of the IMF," he said at a press briefing by three African finance ministers.
It is too early to know the degree to which capital flows into Kenya may be restricted as a result of the crisis, the minister added.
"We are watching carefully," he said.
Mr Michuki called on donor nations not to allow the financial turmoil to disrupt their commitments to increase aid to Africa.
"We hope that when the strong nations correct the distortions that have entered into the market they will simultaneously put in place a continued programme of aid that does not interrupt investments and growth in Africa," Mr Michuki said.
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