terça-feira, setembro 23, 2003
The Poverty of Nations: International Monetary Fund Socialism Run Amok
On Sept. 23, the World Bank Group and the board of governors of the International Monetary Fund will meet in Dubai to try -- yet again -- to determine “how current international monetary issues should be addressed.”
Let’s hope they bring some fresh ideas because -- despite a $1.5 billion annual budget, 100-plus offices and more than 10,000 employees -- their current approach isn’t working. The World Bank’s motto is: “Our dream is a world without poverty.” But its assistance has done little or nothing to alleviate poverty and, in many cases, has helped perpetuate the systems that brought the hardship in the first place.
In most cases, though, the assistance hasn’t helped. Why? Largely because recipients have failed to address the main causes of their economic ruin -- corruption, repressed economies, weak judicial systems and excessive state ownership of key enterprises.
The World Bank and the IMF won’t come close to realizing the dream of "a world without poverty" as long as they keep feeding money to countries with repressed economies and weak judicial systems. These factors breed corruption and deter growth. And the aid merely enables the problems to persist. Argentina, for example, recently used IMF funds to pay government debts so it could avoid much-needed reform of its corrupt public sector.
posted by Miguel Noronha 3:02 da tarde
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