• The members of the Club of Madrid urged the IMF to strengthen democratic governance in those countries where it intervenes, and to be more democratic in its own procedures and decision making.
  
• The Club of Madrid, chaired by Fernando Enrique Cardoso, stressed that "the prospects for democratic survival and success require more effective international cooperation, in order to assist democratic governments in times of financial crisis, and to prevent crises from recurring".

Madrid, November 4th, 2003. The General Assembly of the Club of Madrid, chaired by former Brazilian president Fernando Henrique Cardoso, released a final declaration on the impact of International Monetary Fund (IMF) programs on the democratic governance of the countries where it intervenes.

After analyzing the relation between the IMF and several countries currently in the process of democratic transition and consolidation and which have experienced financial crises over the last twelve years, the 26 members present at the general assembly called on "all democratic governments to pursue sound economic policies within the framework of a market economy and their own democratic procedures." "We urge them, " the final declaration adds, "…to focus on effective strategies to foster and enhance sustainable development in the long-term."

The former heads of state and government, the representatives of the constituent foundations of the Club (FRIDE – Fundación para las Relaciones Internacionales y el Diálogo Exterior– of Spain, and the Gorbachev Foundation of North America) and a select group of experts from around the world analyzed the cases of Brazil, Korea and Poland.

These experiences led the members of the Club of Madrid to stress that "democracy has proven to be not only a great value in itself, but also a system capable of designing and applying effective and sustainable market economy policies."

The new role of the IMF

Although the IMF is primarily a financial institution with a fundamentally economic focus, the members of the Club of Madrid urged the Fund to recognize the link between democracy and economic policies. The former heads of state and government pointed out that "democracies are much stronger with good economic policies" and stressed that the IMF should be sensitive to the impact of its policies on the democratic governance of the countries in which it chooses to act.

The members of the Club of Madrid urged "the IMF to be more transparent in the formulation, communication and explanation of the requisites and conditions of the economic policy requirements that it expects from governments that seek its assistance". They added: "Policies must be technically correct but citizens must also perceive them to be politically and socially fair". The members of the Club also urged the Fund "to become more democratic in its own modus operandi".

"The Club of Madrid," the declaration concluded, "…also calls attention to the fact that the economy has become global, but politics has not; it is therefore urgent that the international community work towards a new model of global governance, that responds to the crucial needs of citizens, to sustainable development and social justice."

The Club of Madrid has decided to further elaborate its recommendations in a report on the IMF and its relationship with democratic governance in the countries where it intervenes. That report will be published in 2004.

For further information:

• Description of Second General Assembly
• Final Declaration
• Country-Case papers

Contact:

Bassat Ogilvy Consejeros de Comunicación
Mariló Sánchez Sastre
Juan A. Martínez
Tel: 91 398 47 36
91398 47 23
Fax: 91 398 47 27

Letter from the President

It is an honor for me, as President of the Club of Madrid, to offer these words of introduction. Democracy is a universal value that transcends cultural and religious differences. Defending democracy takes priority over the particular interests of any nation, since no other political system is as favorable for economic and social development. In this respect, democracy goes hand in hand with peace, since the only alternatives to freedom of expression and representative government are oppression and violence. Peace requires an agreement entered into freely by citizens, without fear, and with respect for reason and the right of law; in other words, within a democratic framework.

I am sure you will share my idea that for democracy to grow there must be a guaranteed space for public debate, a forum designed to improve the quality of citizenship. The Club of Madrid contributes to the debate by offering the valuable personal experience of its members -- former heads of state and government of democratic countries -- and the knowledge of and advice from an outstanding group of political and academic experts.

With our direct knowledge of the challenges and difficulties confronting not only young, but also mature democracies, the members of the Club of Madrid would like to offer ourselves to actively promote democracy, and to share our experiences in order to help others navigate the difficult road to freedom.

We, the members of the Club of Madrid, have taken on this serious obligation; as a group we seek to spark the democratic advances that could guarantee peace and the advancement of humankind. Part of this task will also be to contribute to overcoming the lack of international governance. We believe that it is extremely important to apply specific measures and practical recommendations, such as those developed in the course of the work of the Club of Madrid.

I hope you share our enthusiasm for the ambitious task we have set out to accomplish. With our efforts, we wish to contribute to building a better world - we will be satisfied if, as one of our members says, we are at least able to set one piece of tile in this mosaic of progress.

Fernando Henrique Cardoso
Former President of Brazil
President of the Club of Madri