The timing of Martin Wolf's assertion that the IMF is in financial crisis because of its own success is curious. For it comes at a time when the US economy shows ever-increasing signs of a housing-led slowdown.

Resident Fellow Desmond Lachman

It also comes at a time when both oil and non-oil international commodity prices appear to be correcting abruptly from their spectacular run-up over the past three years.

To be sure, since 2002 there has been a marked strengthening in the external positions of many emerging market economies.

However, this improvement would appear to be more a reflection of the favourable external conditions that these countries have enjoyed rather than of the implementation of IMF prescribed policies.

Indeed, a recent IMF study estimates that the substantial run-up in international commodity prices since 2002 has boosted these countries' export earnings by more than a cumulative 20 per cent of their gross domestic product. It remains to be seen how many emerging countries, especially in Latin America, will fare in the event that there is a significant slowing in US economic growth and further sell-off in commodities.

Should that occur, we might find that the many announcements of the IMF's demise were premature.