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Posts Tagged ‘World Bank’
March 28th, 2012 at 1:46 pm
Obama’s World Bank Nominee Not Fond of Economic Growth
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Last week, President Obama made the surprising announcement that Dartmouth University President Jim Yong Kim — a relatively obscure figure — was his nominee to become the next President of the World Bank, the international organization that works to spur economic development throughout the world. Thanks to some careful digging by the NYU Development Research Institute, we’re now learning a bit more about Jim’s views — and the details are a little startling. The Ivy League executive seems to think of economic growth as a zero-sum game — and one in which the developed world has been consistently sticking it to the little guys. A few excerpts from his writing:

… the quest for growth in GDP and corporate profits has in fact worsened the lives of millions of women and men.

Using Cuba as an example, Chapter Thirteen makes the case that when leaders prioritize social equity and the fundamental right of all citizens to health care, even economically strapped governments can achieve improved and more equitable health outcomes.

… [G]rowth – the market-led economic growth sought by governments, the growth in profits celebrated by businesses, and the growth in power and influence of transnational financial and corporate interests – often comes at the expense of the disenfranchised and vulnerable…  As the imperatives of growth at any cost increasingly determine economic and social policy and the behavior of global corporations, more people join the ranks of the poor and greater numbers suffer and die.

And if this isn’t bad enough, the final passage cited by the NYU group finds Jim quoting Noam Chomsky.

Dinesh D’Souza caught a lot of flak for positing in his book, “The Roots of Obama’s Rage,” that the president’s ideology could be traced largely to the Kenyan anti-colonialism of his father. While I think that D’Souza overstated the case rather severely, instances like this one remind us of the germ of truth to his argument.

Whether Obama is decrying a world where international negotiations were “just Roosevelt and Churchill sitting in a room with a brandy” or picking a new World Bank President who seems to find the very practice of capitalism predatory, there seems to be a consistent suspicion that someone somewhere is being victimized. Should Jim Yong Kim become the head of the World Bank, it will be the people of the developing world — caught in the downward economic spiral that always accompanies attempts at implementing “social justice” — who will be the victims.

May 20th, 2011 at 1:12 pm
Why a European “Must” Run the IMF

In an email regarding yesterday’s post, reader Eric Coykendall sent this helpful article from Foreign Policy explaining why a European traditionally heads the International Monetary Fund (IMF): a so-called “gentlemen’s agreement” brokered by economist John Maynard Keynes.

The origins of the gentlemen’s agreement date back to shortly after the Bretton Woods conference in 1944, which established both the IMF and World Bank. According to Miles Kahler’s history, Leadership Selection in the Major Multilaterals, Bretton Woods architect John Maynard Keynes had assumed that his main collaborator at the conference, Treasury Department official Harry Dexter White, would run the IMF. U.S. President Harry Truman also supported White’s choice. However, Treasury Secretary Frederick Vinson, with strong backing from Wall Street, argued that an American should run the World Bank — Washington Post publisher Eugene Meyer got that job in 1946 — and that it wouldn’t be proper for the United States to run both of the world’s major financial institutions. White’s possible communist sympathies — he’s widely suspected today of having been a Soviet agent — may also have played a role in the decision. In the end, Belgium’s Camille Gutt was eventually appointed to run the IMF.

In the wake of scandal engulfing the recently resigned Dominique Strauss-Kahn from France, developing nations like Brazil and South Africa are pushing for a non-European to manage the world’s leading investment/bailout bank.  In the article sent by Coykendall,  FP makes this keen observation about the European double-standard likely to decide the outcome.

The question of nationality is sure to come up again if Strauss-Kahn steps down, but Europeans will not be eager to part with the position. Some, such as German government spokesman Christoph Steegmans, argue that owing to the IMF’s critical role in stemming Europe’s current financial crisis, the managing director should be someone who is familiar with “Europe’s particularities, the currency questions and also the political circumstances here.” Strangely, when the IMF was primarily giving loans to countries in Africa and Latin America, local knowledge didn’t seem to be quite as much of a factor.