Europe throws some bones to the developing world – IHT
European leaders suggested Friday that the International Monetary Fund could also become the worlds financial watchdog, with increased powers to curb financial crises with more money to aid troubled economies.
But Brazil and other emerging-market nations have long complained that their representation in the fund and the World Bank is insufficient. Da Silva said the Group of 20 was better positioned to forge new international financial regulations, because it more broadly represents both rich and developing countries.
Europe wants to stay relevant
Europe which has a major say in the IMF and World Bank, after the USA, obviously wants to increase its role – and decrease US importance. To gets its way, it has gone on a major diplomatic offensive – to the extent of restoring diplomatic ties with Cuba.
To placate the Third World, the duopoly and Europe may show some token resistance – and finally give the Third World some minuscule voting rights. The Third World must not waste time on reforming the IMF and World Bank – but instead focus on setting up a system to manage the Third reserve currency.
As an interim measure, to deal with the current liquidity problem, the US Fed, the IMF and World Bank should be pressured to part with some liquidity.
Why flog the IMF and World Bank dead horses.