The proposals include promoting orderly integration of financial markets and involving the private sector in the prevention and resolution of financial crises, IMF director for policy development and review department Jack Boorman told newsmen here yesterday.

The Asian crisis, where few realised the depth of problems faced by banks or firms in South Korea, Thailand and Indonesia, have heavily influenced the ideas being presented to IMF's policy-setting interim committee, he said.

Referring to complaints about IMF rescue operations launched in various countries facing financial crises, Boorman admitted certain flaws in such steps saying IMF "rescued not a country or people, but reckless investors who poured money into projects without adequateevaluation of risks".

"The IMF proposes sharpening the focus of fund surveillance on appropriate sequencing of capital account liberalisation and the examination of whether effective safeguards are in place in member-countries," he added.

It is also proposed to increase the effectiveness of IMF's coordination with the World Bank by setting up a bank-fund financial sector liaison committee, Boorman said. He also stated that review was under way of various countries' experiences with controls on capital flows.