[Weekly Compilation of Presidential Documents Volume 34, Number 43 (Monday, October 26, 1998)]
[Pages 2073-2075]
[Online from the Government Publishing Office, www.gpo.gov]

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The President's Radio Address

October 17, 1998

    Good morning. This week we reached an agreement on a balanced budget 
that invests in our people and our future. I'm proud of the results: 
100,000 new teachers and funds for after-school programs for hundreds of 
thousands of children; new environmental protections and an advance in 
our clean water initiative to deal with the 40 percent of our lakes and 
rivers that aren't yet fit for

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swimming or drinking; aid for struggling farmers. We set aside the 
surplus until we save Social Security.
    This new budget will also help to strengthen our economy by meeting 
our commitment to the International Monetary Fund, a challenge I set for 
America in my State of the Union Address 9 months ago.
    Although I'm pleased we've accomplished this, 8 days of progress 
cannot entirely make up for 8 months of partisanship. Let me tell you 
why this challenge has been so important. Our economy is the strongest 
in a generation. We have a budget surplus and nearly 17 million new 
jobs. Unemployment has been below 5 percent for more than a year, at a 
28-year low. Inflation is at historic lows. Wages are once again on the 
rise.
    More than ever, this economic strength rests upon the strength of an 
increasingly interdependent world. Our own recent growth depends heavily 
on expanded exports of American products and services. But over the last 
year, the world's financial markets have been in turmoil. Countries all 
around the world are having a difficult time managing their own 
economies and, therefore, affording American goods, from wheat to 
apples, from computer chips to jumbo jets. We must act to promote our 
own prosperity and to protect our people at this critical moment by 
working to stabilize the global economy and helping our friends to 
restore growth. This week we did.
    A month ago I said that the balance of risk in the world economy had 
shifted from inflation to slowdown and that all nations must work 
together to promote growth. Through the International Monetary Fund, 
nations can join forces to help countries in trouble help themselves. 
That's why I worked with Democratic and Republican Members of Congress 
to meet our commitment to the IMF, with a package of tough reforms to 
make the Fund more accountable, more focused on growth, better equipped 
to address the economic crisis of the 21st century.
    Our contribution will leverage a total of $90 billion in new funds 
for the IMF, expanding its reserves by 40 percent. Now the IMF is 
stronger and ready to act. We must make certain that when it acts, it 
acts to promote global growth and to limit the reach of financial 
crisis. In turn, this will foster a stronger economy here at home and 
help our own workers, farmers, and ranchers. It is an insurance policy 
for our own economy.
    By funding the IMF and keeping our economy sound and strong, the 
United States is doing its part in the world economy. But the world's 
other leading economies must also do theirs. Europe must continue to 
promote growth and keep its markets open. And Japan, the world's second 
largest economy and by far the largest in Asia, faces the most important 
task of all. I welcome the substantial assistance in Japan's legislation 
to repair its troubled banking system. Now it's critical to avoid 
further delay by moving quickly and using that money most effectively.
    The United States values our strong relationship with Japan, our 
political, our security, and our economic partnership. But now the 
health of Asia's economy and, indeed, the world, depends upon Japan. 
That is why it must spur economic growth, open and deregulate its 
economy, and take these immediate steps to strengthen its financial 
system.
    Working with our international partners, we must take further action 
to promote global growth and to strengthen the world financial system. 
It is particularly important to find new ways to keep this crisis from 
spreading. We stand ready to help countries that develop policies to 
keep their economy strong, and we must continue our work to modernize 
international financial institutions to meet the challenges of this 
changing world economy.
    When he led the effort to create the International Monetary Fund, 
President Franklin Roosevelt said that it ``spelled the difference 
between a world caught again in the maelstrom of panic and economic 
warfare, or a world in which nations strive for a better life through 
mutual trust, cooperation, and assistance.'' This week we have 
strengthened the IMF's ability to make that difference. When America 
acts and America leads, we can build a stronger, more prosperous 
economy, not only for our own people but also for the entire world.
    Thanks for listening.

Note: The President spoke at 10:06 a.m. from the Oval Office at the 
White House.

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