Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance
description
Transcript of Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance
![Page 1: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/1.jpg)
Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance
By Mark WeisbrotBy Mark WeisbrotCo-Director of the Co-Director of the
Center for Economic and Policy Research (CEPR)Center for Economic and Policy Research (CEPR)
Thursday, October 9, 2008Thursday, October 9, 2008
![Page 2: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/2.jpg)
10. The IMF totally 10. The IMF totally missed the two biggest missed the two biggest
asset bubbles in the asset bubbles in the history of the world.history of the world.
![Page 3: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/3.jpg)
Home PricesHome Prices
60
80
100
120
140
160
180
200
Year
Per
cent
of 1
954$
(1st
Qua
rter
)
House Prices Rent
![Page 4: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/4.jpg)
Price-to-earnings ratioPrice-to-earnings ratio
![Page 5: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/5.jpg)
9. The IMF is 9. The IMF is unaccountable.unaccountable.
![Page 6: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/6.jpg)
8. Developing 8. Developing countries have no countries have no significant say in significant say in IMF decisions.IMF decisions.
![Page 7: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/7.jpg)
Voting Structure of the IMFVoting Structure of the IMF Pre-Singapore IMF Voting Rights
All Others37.2% Japan
6.1%
Germany6.0%
France4.9%
United Kingdom4.9%
United States17.0%
Korea & Singapore1.2%
Australia & New Zealand
1.9%
Mexico1.2%
Brazil1.4%
India1.9%
Russia2.7%
China2.9%
Canada2.9%
Italy3.2%
High-Income Oil Producers*
4.5%
* High-income oil producing countries include: Saudia Arabia, Kuwait, the United Arab Emirates, Qatar, Brunei, and BahrainSource: Bryant, Ralph C. (2008). "Reform of IMF Quota Shares and Voting Shares: A Missed Opportunity." Washington, DC: Brookings Institution (April 8). http://www.brookings.edu/~/media/Files/rc/papers/2008/0409_imf_bryant/0409_imf_bryant.pdf
![Page 8: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/8.jpg)
Voting Structure of the IMFVoting Structure of the IMF Current IMF Voting Rights
All Others37.7% Japan
5.9%
Germany5.8%
France4.8%
United Kingdom4.8%
High-Income Oil Producers*
4.3%
China3.6%
Italy3.1%
Canada2.8%Russia
2.6%India1.9%
Korea & Singapore1.7%
Mexico1.4%
Australia & New Zealand1.8%
Brazil1.4%
United States16.5%
* High-income oil producing countries include: Saudia Arabia, Kuwait, the United Arab Emirates, Qatar, Brunei, and BahrainSource: IMF, 2008. "IMF Members' Quotas and Voting Power, and IMF Board of Governors." http://www.imf.org/external/np/sec/memdir/members.htm
![Page 9: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/9.jpg)
7. The IMF is at the head 7. The IMF is at the head of a creditor’s cartel of a creditor’s cartel that has pressured that has pressured
developing countries to developing countries to adopt harmful policies adopt harmful policies
over the last three over the last three decades.decades.
![Page 10: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/10.jpg)
6. The IMF made a 6. The IMF made a mess in the last set mess in the last set
of financial and of financial and economic crises: economic crises:
Argentina, East Asia, Argentina, East Asia, Russia…Russia…
![Page 11: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/11.jpg)
Per Capita GDP in Asian Crisis Per Capita GDP in Asian Crisis Countries, (1997=100)Countries, (1997=100)
![Page 12: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/12.jpg)
Per Capita GDP in Argentina, 1990-Per Capita GDP in Argentina, 1990-20082008
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
10,000.00
11,000.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
![Page 13: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/13.jpg)
5. The IMF has 5. The IMF has shown no serious shown no serious efforts at reform efforts at reform despite repeated despite repeated
failures.failures.
![Page 14: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/14.jpg)
4. The IMF’s economic 4. The IMF’s economic projections can be projections can be way off target and way off target and may be politically may be politically
influenced.influenced.
![Page 15: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/15.jpg)
IMF Projected GDP Growth for IMF Projected GDP Growth for Argentina and Actual GrowthArgentina and Actual Growth
![Page 16: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/16.jpg)
3. The IMF’s 3. The IMF’s recommended recommended
economic economic policies have, in policies have, in general, failed.general, failed.
![Page 17: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/17.jpg)
Latin America's Latin America's Unprecedented Long-Term Unprecedented Long-Term
Growth CollapseGrowth Collapse 82.0
9.014.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
1960-1980 1980-2000 2000-2007
Tota
l Gro
wth
(%)
Western Hemisphere: Total growth in per capita real GDP (Purchasing Western Hemisphere: Total growth in per capita real GDP (Purchasing Power Parity)Power Parity)
![Page 18: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/18.jpg)
Slowdown in Economic Slowdown in Economic GrowthGrowth
![Page 19: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/19.jpg)
2. The IMF has been a 2. The IMF has been a champion of the champion of the
de-regulated global de-regulated global financial flows that financial flows that
played a huge role in played a huge role in the current mess.the current mess.
![Page 20: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/20.jpg)
1.The IMF is run 1.The IMF is run mostly by the mostly by the
Treasury Treasury Department.Department.
![Page 21: Top Ten Reasons Why the IMF Shouldn’t Take the Lead in Reform of Global Finance](https://reader035.fdocuments.in/reader035/viewer/2022070419/56815c74550346895dca8998/html5/thumbnails/21.jpg)
U.S. Treasury U.S. Treasury Secretary Secretary Paulson. Paulson. Compensation Compensation at Goldman at Goldman Sachs in 2006: Sachs in 2006: $164 million$164 million..