IMF's Message for Indonesia after Soeharto's Resignation

“Though the experience has been harmful, painful for the Indonesian people ... the consequences of this is that the IMF has changed a lot.”

The Asian crisis began in Thailand and spread through the region like wildfire, crushing currencies, sucking liquidity out of banks and driving foreign debt to bankruptcy levels. Violent protests erupted on the streets of Jakarta, bringing an end to the three-decade rule of military strongman Soeharto, who resigned in 1998.

The IMF came to the rescue with $40 billion in bailouts for Indonesia, South Korea and Thailand, but many said the policies it imposed on governments were too tough on the poor and vulnerable. The Fund announced in November that it would double its capital and adopt measures to give China and other emerging-market economies a greater say.

Proposed by the Group of 20 advanced and emerging-market economies, the package of long-sought reforms aims to better reflect the growing importance of big emerging-market and developing economies in the global economy.