2 - The Michigan Daily - Tuesday, October 6, 1998
IMF discusses financial crisis
Committee cites serious worsening of economic prospects
WASHINGTON (AP) - The policy-setting com-
mittee for the International Monetary Fund said
Sunday that the global economic outlook has "wors-
ncd considerably," but ended a day of discussions on
the subject by papering over disagreements on how to
halt the widening financial crisis.
The IMF's interim committee pledged "concrete
And rapid action" to deal with the worst global eco-
nomic crisis in 50 years but used vague language indi-
cating substantial disagreement still exists.
Citing deepening recessions in Japan and many
Asian nations, the collapse of the Russian ruble and
stock market turmoil around the world, the IMF panel
said, "The outlook for the world economy has worsened
considerably since the committee's April meeting."
The United States and a number of other nations in
recent weeks have put forward major proposals to
overhaul the operations of the IMF, which has been
widely criticized for bungling the way it has handled
the Asian crisis.
However, the final IMF statement underscored how
much disagreement remains over just what approach
should be taken. None of the major measures were
adopted, although the group pledged to continue
working toward agreement on a coordinated strategy.
"Now is the time to follow up with concrete and
rapid action," the IMF statement said, although it indi-
cated many of the proposals would not be acted on
until next spring.
The disagreements between nations on the IMF
panel reflected the differences that surfaced in discus-
sions Saturday among the finance ministers and cen-
tral bank presidents of the world's seven wealthiest
Despite a major Clinton administration effort to pro-
ject unity among economic powers in these meetings,
there is still strong disagreement over the proper course
to follow. The weekend discussions represented the start
of the annual meetings of the 182-nation IMF and its
sister lending organization, the World Bank.
U.S. officials insisted that they were happy with
the initial support they have received for a major ini-
tiative Clinton unveiled Friday that would accelerate
emergency IMF loans to countries threatened with
In its statement, the IMF committee said it would
"explore" such an approach but stressed that nothing
could be done without the United States and other
major members replenishing the IMF's depleted
Several nations, including Britain and Japan, had
said earlier in the day that agreement of the U.S. ini-
tiative depended heavily on whether the U.S. Congress
ends its delay and approves an $18 billion U.S. contri-
bution before its scheduled adjournment later this
The final IMF statement did prod Japan, as the
world's second largest economy, toward moving much
more quickly to jump-start its economy and deal with
an estimated $1 trillion in debt weighing down its
It also criticized Russia for defaulting on billions of
dollars in foreign loans in August - an action that
shocked markets around the world - and urged the
government of Boris Yeltsin to take "immediate mea-
sures to re-establish confidence in the ruble" and
resume payments to foreigners holding Russian debt.
Despite the policy disputes at the IMF, the United
States pushed ahead Sunday with efforts to assemble
a multibillion-dollar bailout plan for Brazil, the latest
country threatened by panicked investors seeking to
pull out their money.
It was expected that perhaps a $30 billion emergency
credit line for Brazil could be announced yesterday if
final results are known by then in that country's presi-
dential election. Incumbent Fernando Henrique
Cardoso was projected as the winner by exit polls.
But on proper policies to pursue in their own coun-
tries, the major economic powers showed less agree-
British and German monetary officials resisted
pressures to follow the lead of the U.S. Federal
Reserve in cutting interest rates to spur growth and
make sure that a slowdown in Europe doesn't add fur-
ther drag on an already weakened global economy.
More than $100 billion in IMF bailout packages
have been put together since the start of the Asian cri-
sis. They provided help only after a country's econo-
my was decimated and its resources depleted by
investors seeking to flee.
Under the Clinton proposal, the IMF would offer
credit earlier in hopes of averting a disastrous flight of
The University of Michigan
Auditions will consist of scales and, sight-reading.
Drum Set players will also need to demonstrate various styles.
REHEARSALS for both Bands will be on Tuesday evenings.
Continued from Page 1
cant group in the middle," Klinkman said.
While the physician's guide to mental
health may list 16 different types of
depressions, Klinkman said, those labels
do not apply to those who have sporadic
Experts at the University's office of
Counseling and Psychological Services
Positions open for:
t k ' G Z t':
The Psi Upsilon Fraternity ac
that appeared in the October
2nd and 5th editions of The
Michigan Daily contained an
error. The Psi Upsilon
address should have read
1000 Hill Street. we
apologize for any inconve-
nience this may have caused.
said they hope depression can be iden-
tified. Thursday is National Depression
Screening Day. The office is planning
to hold free screenings for depression
in the Michigan League from 10:30
a.m. to 5:30 p.m. Participants will
receive a questionnaire and the answers
will be scored to detect whether the indi-
vidual possibly has major depression.
"You clearly can determine if someone
is depressed," said LaReese Collins, asso-
ciate director for outreach and liaison for
CPS and coordinator of the University
effort. Tihe screenings are anonymous.
During last year's National Depression
Screening Day, more than 80,000 people
nationwide were screened at 2,400 sites.
But Klinkman said questionnaires are
not a reliable way to identify depression,
adding that about half of those who
received similar questionnaires in his
study registered a high depression score.
At most, half of those diagnosed had
major depression. Klinkman compared
major depression to chronic asthma
and minor depression to appendicitis,
a problem which can be resolved
quickly and easily.
Those who screen positive from the test
will be given referrals for psychological
services, Collins said.
PLAYING AUDITIONS WILL BE HELD OCTOBER 6-8, 1998
Sign up at Revelli Hall anytime between 2 and 6 pm.
For more information call 764-0582 after 1 pm.
**Those selected for Women's Basketball Band will receive an honorarium"
AROUND TH NATION
Court action may spur more drug tests
WASHINGTON - Public schools nationwide may be encouraged to requir
more students to take drug tests after the Supreme Court allowed an Indiana dis-
trict to continue such tests.
Rejecting an appeal by teen-agers and their parents yesterday, the court let a rural
school district conduct random drug tests for all students in extracurricular act'
ties - from sports teams to the library club - even if they are not individur
suspected of using drugs.
The justices, acting without comment, left intact a federal appeals court ruling
that said such testing does not violate students' privacy rights.
Starting its 1998-99 term with a flurry of paperwork, the court issued orders in
more than 1,600 cases. It granted full review to just six.
Outside the stately courthouse, more than 1,000 members of the National
Association for the Advancement of Colored People noisily demonstrated yester-
day to protest the court's lack of minority law clerks. NAACP President Kweisi
Mfume and 18 other people were arrested for trying to demonstrate on court prop-
erty rather than on the public sidewalk.
The court's action in the drug-testing case is not a decision and therefore set.
national precedent. It remains binding law in three states - Indiana, Illinois
Wisconsin - and it may entice educators in other states to expand drug testing.
Congress expands The public housing overhaul was
attached to the fiscal 1999 spending
subsidized housing bill for the Departments of Veterans
Affairs and Housing and Urban
WASHINGTON - Congress agreed Development, which was given a $2
yesterday on legislation that expands the billion boost in funding over the cur-
availability of subsidized housing for the rent year.
first time in five years and allows hous-
ing authorities to move more working ee plad l
families into apartments now reserved Teen p ea sgilIin
almost exclusively for the poor. in school shootings
After years of political stalemate,
Republicans and Democrats compro- PADUCAH, Ky. - A timid-looking
mised on a bill that would update the teen-ager who opened fire on a high
Depression-era public housing laws school prayer circle, killing three fellow
that critics contend have allowed many students, pleaded guilty but mentally ill
housing projects to become centers of yesterday and will have to spend at least
urban blight and crime. 25 years in prison.
"We have begun the process of decon- With his arms folded, Michael Ad*
centration of the poor," said Sen. Connie Carneal, a slightly built youngster with
Mack (R-Fla.) "It won't happen glasses whose fair complexion and rosy
overnight, but we are trying to create a cheeks made him look younger than his
mix, to have role models, to have a foun- 15 years, acknowledged carrying out the
dation for building a community." attack last Dec. 1 at Heath High School
Under the measure, managers of in West Paducah.
housing projects could admit new resi- Five other people were wounded in
dents with annual incomes of up to the rampage, one of a series of school
$35,000 - or higher in the most shootings that rocked the nation during
expensive areas of the country. the last school year.
AROUND THE WORLD
expressed concern that Milosevic was
U.S. envoy warns "playing the classic game of making
Yugoslavia of strikes false promises" to avoid NATO mili-
BELGRADE, Yugoslavia - With Clinton, in a telephone call w9
NATO attacks said to be only days Russian President Boris Yeltsin, said
away, a top U.S. envoy arrived yester- Milosevic's compliance with U.N.
day with an I1th-hour warning to demands "must be verifiable, tangible
Yugoslavia's president to halt his crack- and irreversible," press secretary Joe
down on ethnic Albanians in Kosovo or Lockhart said at the White House.
Richard Holbrooke began talks with China sig scivil
Slobodan Milosevic yesterday evening
after arriving from Brussels, Belgium, nghts agreem ent
where he conferred with senior NATO
officials. UNITED NATIONS - China
Before boarding a plane for signed an important international
Belgrade, Holbrooke said conditions in agreement on civil and political rights
the southern Serbian province had not yesterday that guarantees protection
improved since the alliance started two ' against arbitrary arrest while securing
weeks ago to finalize plans for air raids freedom of thought, religion and
to force Milosevic to halt his offensive expression.
against Kosovo Albanian separatists. The treaty provides for fair trials,
Holbrooke said he planned to drive prohibits torture, or cruel or degrading
home to Milosevic "the extreme gravi- punishment, and recognizes that citi-
ty of the situation" Holbroke negoti- zens have the right to life, liberty and a
ated the peace deal with Milosevic and prompt appearance before a judge a
other Balkan leaders that ended the 3 seizure by authorities.
1/2-year Bosnian war in 1995.
In Washington, President Clinton - Compiledfom Daily wire reports.
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EDITORS: Maria Hackett, Heather Kamins. Jeffrey Kosseff, Chris Metinko,
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