A Wise Decision

Thursday, September 20, 2001; Page A34

WHEN THE World Bank and International Monetary Fund were confronted with the possibility of massive street protests against the annual meetings in downtown Washington, we urged the two global institutions to proceed with their original schedule lest they be seen as bowing to the threat of violence. Last week's terrorist attacks on the Pentagon and World Trade Center have obviously and dramatically changed the equation. This sudden emergency, as well as the planning and execution of a government response, will have the Bush administration and federal law enforcement officials preoccupied for some time in the future. District officials will be likewise engaged. World Bank and IMF leaders therefore acted prudently when they decided this week to cancel the meetings set for Sept. 29 and 30.

This unexpected change in plans may be a blessing in disguise. The annual event has become a famously expensive, convention-like affair that attracts hordes of visitors and "dignitaries" who aren't remotely connected to the mission and work of the two institutions. The elaborate social activities surrounding the gatherings -- and the planning, preparation and expense that they entail -- add little to the purpose of the meetings, and may even detract from the all-important review of World Bank and IMF policies and the consideration of issues affecting the global economy that should take place. This year's pause gives annual meeting organizers an opportunity to reconsider their approach.

This is not to say the meetings' seminars, workshops, side business deals and speeches of finance ministers to half-empty ballrooms sprinkled with dozing delegates aren't of some value to some portion of the regular attendees. But the shareholder governments who strongly influence the World Bank and IMF ought to use this occasion to push for streamlined gatherings that remain focused on how to address international monetary and development issues. Those governments should also reconsider the wisdom -- and take into account the expense -- of staging the annual World Bank-IMF meetings in Washington for two consecutive years and then in another country in the third year. The costs of shipping large numbers of World Bank and IMF management and staff overseas to participate in a confab ought to be closely and critically reviewed. A strong case can be made for the elimination of that custom and for restructuring the annual meetings -- not because of the threat of protests, but because change is overdue.