Source #2: 10 Reasons to Abolish the IMF & World Bank by Kevin Danaher.
Danaher is an anti-globalization activist (please note that anti-globalization does not mean isolationist, rather it means that he objects to the unjust, undemocratic nature of historical and contemporary globalization). The extremely leftist anti-globalization perspective is an important one to my research because these protestors are the ones who most consistently, courageously, and truthfully expose the many and severe problems of global economic institutions and their practices. Admittedly, they are often so angry at the injustices (which is understandable) that they forget that for reform to be practical, it must connect to the current order. As the title of his book suggests, Danaher proposes that we abolish the World Bank and IMF. However, he does not prove that this is a feasible option or that this is the best option. He assumes after listing the problems with the IMF and World Bank that no amount of reform will shape the World Bank and IMF into democratic, just, accountable institutions. I believe that while his heart is in the right place, abolition is not the best option because it is not feasible given the current state of affairs. While the injustices of the current order also make me very angry, I believe that we cannot use force to overthrow it, that for a solution to be sustainable, we must still consider all interests and not only the interests of the oppressed.
I agree with Danaher that the key problem of current international economic institutions is that they are undemocratic. He points out that they empower large corporations (whose primary aim, we must remember, is profit) to influence every aspect of our lives and to shape our governments agendas (whose primary aim, in theory, is the welfare of its people), yet these same large corporations cannot be held accountable by governments or citizens. I believe this speaks to a general and disturbing trend that more and more important decisions that directly affect people's lives are shifting from the political sphere to the economic sphere. I believe that the economic sphere needs to be politicized so that economic decisions can be democratic and accountable to the people they affect.
Monday, March 30, 2009
Friday, March 6, 2009
White Man's Burden?
Source #1: Globalization and Its Discontents Joseph E. Stiglitz
I am two chapters into Stiglitz’s Globalization and Its Discontents. Stiglitz offers remarkably clear and balanced insights into the two of the largest engines of globalization: the World Bank and IMF. His perspective is an interesting one: a Nobel Prize winning academic, he also has substantial policy experience: he served as one of Clinton's economic advisors when Russia began its transition from communism and he served as Chief Economist and Senior VP of the World bank during the financial crises of the late 90s. Through studying the failures of both governments and markets, he has come to believe that neither are sufficient on their own. Through his work with the World Bank, he’s visited many countries, spoken to thousands of government officials, finance ministers, central bank governors, academics, development workers, people at NGOs, bankers, business people, students, political activists and farmers. As a result of his experiences, he has a strong aversion to ideological dogmatism, and advocates solutions based on what works in the real world. He has witnessed first hand how globalization policies have devastated developing countries, and he is highly critical of the current economic system. He denounces market fundamentalism, expresses frustration at how dogmatic and unfair many globalization policies are, and recognizes that the poorest and weakest have not benefited from globalization at all. He points out how Western countries have been hypocritical in their claims to fight poverty, because the policies that they've pursued are predictably detrimental to poorer countries to the benefit of Western nations. He points out how global institutions like the World Bank and IMF are not transparent, accountable, or democratic (they are dominated by the commercial and financial interests of the wealthiest industrial countries). Yet, he is not blindly critical (a rather refreshing change from the often angry, extremely leftist perspectives that I’ve become accustomed to absorbing). He still believes that globalization may be a force for good and recognizes that globalization has led to some improvements in some areas of the world. He understands the motivations of those against globalization but points out that some protestors have gone to excesses and completely overlooked the benefits of globalization. However, he recognizes and applauds the protestors for putting reform on the global agenda. His descriptions have brought home the message that economic policies have a very real effect on actual people; we should emulate his cool-headed but compassionate approach to reforming economic policies.
I am two chapters into Stiglitz’s Globalization and Its Discontents. Stiglitz offers remarkably clear and balanced insights into the two of the largest engines of globalization: the World Bank and IMF. His perspective is an interesting one: a Nobel Prize winning academic, he also has substantial policy experience: he served as one of Clinton's economic advisors when Russia began its transition from communism and he served as Chief Economist and Senior VP of the World bank during the financial crises of the late 90s. Through studying the failures of both governments and markets, he has come to believe that neither are sufficient on their own. Through his work with the World Bank, he’s visited many countries, spoken to thousands of government officials, finance ministers, central bank governors, academics, development workers, people at NGOs, bankers, business people, students, political activists and farmers. As a result of his experiences, he has a strong aversion to ideological dogmatism, and advocates solutions based on what works in the real world. He has witnessed first hand how globalization policies have devastated developing countries, and he is highly critical of the current economic system. He denounces market fundamentalism, expresses frustration at how dogmatic and unfair many globalization policies are, and recognizes that the poorest and weakest have not benefited from globalization at all. He points out how Western countries have been hypocritical in their claims to fight poverty, because the policies that they've pursued are predictably detrimental to poorer countries to the benefit of Western nations. He points out how global institutions like the World Bank and IMF are not transparent, accountable, or democratic (they are dominated by the commercial and financial interests of the wealthiest industrial countries). Yet, he is not blindly critical (a rather refreshing change from the often angry, extremely leftist perspectives that I’ve become accustomed to absorbing). He still believes that globalization may be a force for good and recognizes that globalization has led to some improvements in some areas of the world. He understands the motivations of those against globalization but points out that some protestors have gone to excesses and completely overlooked the benefits of globalization. However, he recognizes and applauds the protestors for putting reform on the global agenda. His descriptions have brought home the message that economic policies have a very real effect on actual people; we should emulate his cool-headed but compassionate approach to reforming economic policies.
Independent Study Proposal for Ms. Lewis
Topic: The World Bank and IMF
Thesis: The World Bank and IMF must be democratized and made accountable to all citizens so that they can be more effective in fulfilling their stated goals of reducing poverty and promoting economic stability.
Sources
1) Stiglitz, Joseph E. Globalization and Its Discontents. New York: W. W. Norton & Company, 2003.
Nobel Prize winning economist gives an insider's analysis of the World Bank and IMF; describes the major economic events of the last decade; describes his disillusionment with how the IMF puts financial and commericial interests ahead of the interests of developing nations; offers a reform agenda
2) Danaher, Kevin. 10 Reasons to Abolish the IMF & World Bank. Toronto: Publishers Group Canada, 2004.
Shows how institutions of "free trade" are widening the gap between the rich and poor and undermining basic democratic values; calls for the IMF and World Bank to be replaced with new international economic institutions based on democratic, sustainable, just and humane values.
3) Blustein, Paul. The Chastening: Inside the Crisis That Rocked the Global Financial System and Humbled the IMF. Cambridge: PublicAffairs, 2003.
Behind-the-scenes look at the role of the IMF in the economic crises of the 90s; exposes the flaws in the IMF which prevent it from effectively promoting eocnomic stability
4) Brooks, Stephen G., and William C. Wohlforth. "Reshaping the World Order: How Washington Should Reform International Institutions." Foreign Affairs Mar. 2009: 49-63.
Reform recommendations for out-of-date international institutions; the role of the US
5) Stiglitz, Joseph E. "Capital-Market Liberalization, Globalization and the IMF." Oxford Review of Economic Policy 20 (2004): 57-71.
Why market liberalization often leds to increased economic instability
6) Stiglitz, Joseph E. "Democratizing the International Monetary Fund and the World Bank: Governance and Accountability." Governance 16 (2003): 111-39.
The IMF's system of governance has lead to predictably counter-productive policies; the World Bank reformed its agenda to more effectively reduce poverty; the lessons that the IMF can learn from the World Bank; recommendations for IMF reforms
Thesis: The World Bank and IMF must be democratized and made accountable to all citizens so that they can be more effective in fulfilling their stated goals of reducing poverty and promoting economic stability.
Sources
1) Stiglitz, Joseph E. Globalization and Its Discontents. New York: W. W. Norton & Company, 2003.
Nobel Prize winning economist gives an insider's analysis of the World Bank and IMF; describes the major economic events of the last decade; describes his disillusionment with how the IMF puts financial and commericial interests ahead of the interests of developing nations; offers a reform agenda
2) Danaher, Kevin. 10 Reasons to Abolish the IMF & World Bank. Toronto: Publishers Group Canada, 2004.
Shows how institutions of "free trade" are widening the gap between the rich and poor and undermining basic democratic values; calls for the IMF and World Bank to be replaced with new international economic institutions based on democratic, sustainable, just and humane values.
3) Blustein, Paul. The Chastening: Inside the Crisis That Rocked the Global Financial System and Humbled the IMF. Cambridge: PublicAffairs, 2003.
Behind-the-scenes look at the role of the IMF in the economic crises of the 90s; exposes the flaws in the IMF which prevent it from effectively promoting eocnomic stability
4) Brooks, Stephen G., and William C. Wohlforth. "Reshaping the World Order: How Washington Should Reform International Institutions." Foreign Affairs Mar. 2009: 49-63.
Reform recommendations for out-of-date international institutions; the role of the US
5) Stiglitz, Joseph E. "Capital-Market Liberalization, Globalization and the IMF." Oxford Review of Economic Policy 20 (2004): 57-71.
Why market liberalization often leds to increased economic instability
6) Stiglitz, Joseph E. "Democratizing the International Monetary Fund and the World Bank: Governance and Accountability." Governance 16 (2003): 111-39.
The IMF's system of governance has lead to predictably counter-productive policies; the World Bank reformed its agenda to more effectively reduce poverty; the lessons that the IMF can learn from the World Bank; recommendations for IMF reforms
Welcome!
Welcome to Mimi's CPW4U The World Bank and IMF Uncovered blog. Since their inception at the 1944 Bretton Woods agreement, the World Bank and International Monetary Fund have played important roles in shaping the global economic order. The purpose of this blog is threefold. First, I hope to gain a basic understanding of the structure and history of both institutions, and examine how they have shaped our international economic system. Second, I plan to evaluate the effectiveness of the institutions in fulfilling their stated goals of reducing poverty and promoting economic growth. Third, I hope to explore recommendations and develop my own recommendations for reworking the World Bank and IMF to create a more just, democratic and sustainable world. Greater awareness of how the global economy works is critical, especially as we are in the greatest economic crisis in recent times. We must become more informed and active citizens and use this crisis to reform the economic system to create a better future for all.
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