The world has made a wrong turn since Thailand last hosted the IMF gathering in 1991: ALEX BRUMMER

When the International Monetary Fund (IMF) and World Bank last held its annual gathering in Bangkok in 1991, the world was in a very different place.Thailand’s capital has blossomed into a metropolis with dozens of glass-and-steel towers reaching to the heavens.At street level, however, it seems little has changed, with food stalls, open-fronted bars beckoning you in and Thai massage parlours by the score.On my arrival here 35 years ago, I was immediately drawn to a press release announcing that Boris Yeltsin’s Russia had applied to join the IMF’s citadel of free-market capitalism.Many of the subsequent sessions were concerned with how the Fund and Western powers would raise resources to meet the modernisation needs of Russia, the former USSR republics and Eastern bloc countries.There was an air of triumphalism among the Group of Seven industrial countries at the thought of spreading free-market ideas to new converts. Thailand’s capital Bangkok, pictured, has blossomed into a metropolis with dozens of glass-and-steel towers reaching to the heavensBritain would be able to free up resources from defence and enjoy the peace dividend. How life has changed. As the UK’s former Defence Secretary John Healey, now Chancellor, flies in for a rapid-fire series of meetings, he must surely have on his mind the latest Budget bombshell from the Institute for Fiscal Studies.It estimates that the Government will have to find £35billion between now and the end of this Parliament to fund ballooning welfare spending and military commitments to Nato.The heady days when Russia was seen as a friend to be supported ended with the unprovoked invasion of Ukraine in 2022. It is now the sworn enemy of European democracies. Only President Trump, in a bizarre deal with the Kremlin for the supply of diesel, is giving any leeway to Yeltsin’s successor, Vladimir Putin.The rest of the world has jumped ahead as well. In 1991 Thailand was counted among the Asian tigers with a scorching growth rate of 11 per cent. Asia was on a tear. It is still the fastest-growing region in the world, expanding at a 5 per cent clip, driven by China and India. Thailand’s growth has normalised at 2.25 per cent. At the 1991 meeting, Thailand’s government was so concerned about traffic gridlock during the Fund’s visit, with the arrival of 12,000 delegates and private sector bankers, that it declared a series of public holidays designed to keep citizens off the streets.Traffic is as disastrous as ever, but there are fewer colourful tuk-tuks and more digital ride-hailing services such as Grab.The triumph of online means the Thai authorities can in 2026 order people in offices to work from home, to ease the limousine congestion.Last time out the big puzzle for the Western democracies (the G20 had not been invented yet) was whether the IMF, World Bank and Western banking system could garner sufficient capital resources to fund the reforms and transformation of Russia and former Eastern bloc nations into functioning modern states. The European Bank for Reconstruction and Development (EBRD), the glistening bank based in London, was designed for this purpose.Precisely the opposite is the case at this year’s meetings. An explosion of government, household and financial sector debt has taken place in recent times and has reached $365 trillion.A combination of sovereign borrowing following the great financial crisis, Covid, the war in Ukraine and conflict in the Middle East means that debt now exceeds output in almost all G7 countries.HM Treasury says Healey will be advising fellow finance ministers to put ‘fiscal discipline’ at the heart of what they do to control borrowing costs. Tell that to the Americans. Monday’s Wall Street Journal highlighted Britain’s fiscal nightmare, pointing out that a bloated welfare bill is imperilling financial stability and the UK is now paying ‘even more for its debt than spendthrift France’.The paper notes that debt interest payments are on track to hit £130billion by the end of this Parliament.It doesn’t look as if the world is ready for any lectures from Labour.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you