G-20 Slams IMF Over Delayed Governance Reforms

During the G-20 finance ministers meeting, officials took the opportunity to slam the IMF for failing to implement long overdue governance reforms. 

g20 finance ministersThe Group of 20 leading and developing nations reiterated its dissatisfaction over the pace of the International Monetary Fund’s governance reform and urged the United States to ratify an agreement that would provide broader representation to developing countries, a draft communique of G-20 finance ministers and central bank governors said Tuesday.

“We stay deeply disappointed over continued delays in progress of the IMF’s governance and quota allocation reforms agreed in 2010,” the document stated.

The United States has failed to make good on a reform

Currently, awaiting ratification in the U.S. Congress, the United States has failed to make good on a reform that if enacted would increase the size of the IMF’s core source of funding and increase the representation of emerging market and developing countries at the IMF in order to accurately reflect their weight in the global economy.

“Considering the importance of these reforms to keep trust for the IMF, its legitimacy and efficiency, we confirm that their quickest implementation remains a priority for the fund. We continue urging the United States to ratify the 2010 reform as soon as possible,” the draft communique said.

The changes to the voting shares, known as quotas, cannot proceed without the United States, which holds the only controlling share of IMF votes.

The IMF continues to be the target of global protests

Meanwhile, the IMF continues to be the target of global protests largely focused on economic justice, including opposition to austerity policies, such as public services cuts, reductions in labor rights, wages and working conditions.

According to a December 2013 study published by the Initiative for Policy Dialogue at Columbia University, which examined 843 protests across 84 countries occurring between January 2006 and July 2013, the IMF was the target of 20 percent of the total protests.

The survey also found that 25 percent of IMF protests occurred in high-income countries and 24 percent took place in low-income countries.

Source:  G-20 Slams IMF Over Delayed Governance Reforms  TeleSUR

2 thoughts on “G-20 Slams IMF Over Delayed Governance Reforms

  1. Pingback: IMF blackmails Cyprus into making people homeless | Dear Kitty. Some blog

  2. Where is the surprise in the US’ interest and the interest of the other “Western democracies” in democratizing the IMF to not only make it look like the faces of the world but also to represent the economic weight of emerging nations like China, Brazil, India, Russia and South Africa among others?

    The US and the other western nations are being true to form as historically they have opposed any real change to democratize international bodies that they typically use to advance their domination and plunder of developing countries in Africa, Asia, Latin America and the Caribbean. This is true whether it is the democratization of the UN ‘s Security Council,the IMF, World Bank or the WTO among others.

    Thus the news about the tardiness and delay of the US Congress to implement the governance reforms at the IMF, an international financial organization that is fundamentally in the service of Wall Street bankers and other financiers around the globe is simply not surprising.

    First of all, the US Congress is essentially in the service of the American financial oligarchy which is another way of saying Wall Street. Indeed, the senior Senator from Illinois, Senator Durban, a few years ago in an interview with the distinguished American journalist, Bill Moyers on Capitol Hill remarked in a frank moment “that the banks owned this place” in reference to the US Congress which is seated on Capitol Hill.

    The truth is that except for a few dignified Congressional representatives in both the House of Representatives and the Senate who try hard to represent the interests of the people who sent them to Congress, the majority of them are servants of the super-rich and Wall Street who bankroll their election campaigns. This is equally true of democrats and Republicans. Indeed, it is true of democrat and republican Presidents as well. Indeed, some political commentators say that President Obama in his first run for the White House in 2008 got the most money for his presidential run from Wall Street in US history.

    The point is that the American political system from top to bottom is corrupted with big money including that of Wall Street’s. Consequently, Wall Street’s servants in Congress and the White House are no doubt consulting with their financiers behind closed doors about how to proceed with the implementation of the governance reforms agreed upon nearly five (5) years ago. There is no doubt in my mind that Wall Street’s many servants in the US Congress are delaying the implementation of these reforms to give voice and representation to the BRICS and other developing nations because they have to get Wall Street’s approval about the pace and extent of these reforms as it relates to their bottom line.

    The fact is that Wall Street and its guardians in the US Congress really have no interest or are at best reluctant to democratize the IMF because they are worried that with more voices from the developing and so called emerging nations such as the BRICS, Wall Street’s financial interests are likely to be challenged more by the representatives of these nations in the IMF board meetings etc. Thus, the US is very reluctant to yield its majority shares of votes in the IMF which gives it veto powers about critical policy decisions of the Fund to keep Wall Street and global financiers happy.

    The role of the IMF is essentially to promote very harsh austerity programs of budgetary cuts of social services among other expenditures, wage freezes, deregulation, devaluation of the currencies of countries primarily developing countries to ensure that Wall Street and other bankers are paid the debt owned to them by these countries. In other words, the IMF has evolved into what is essentially an international debt collector for global bankers no matter what the costs maybe in unemployment, inadequate hospitals, doctors, teachers, schools, housing, worsening hygienic situations and so on for the vast majority of people on earth in these developing and emerging nations. For the IMF and its zealous director, Ms. Lagarde, the interests of Wall Street and international bankers are supreme no matter what the costs maybe for the peoples of the world.

    To understand the delays of the US Congress on implementing the agreed upon governance reforms at the IMF outside of the context of Wall Street’s machinations is in my opinion a big mistake.

    Another dimension to the delay of the US Congress to implement the governance reforms at the IMF is perhaps the fear and discomfiture that the white power structures in the US and elsewhere is probably experiencing about the rise of emergent nations like China, India, Brazil, Russia and South Africa, the so-called BRICS that are primarily people of color. However, I don’t believe that the latter is their main concern in effecting these agreed upon reforms which reflect not only global changes in the economic size of the BRICS in the global economy but also very importantly these changes reflect the faces of the world which are not all white faces or even mainly white faces.The US Congress and Wall Street must also come to grips with these global realities. The sooner the better for them though off course they are probably less worried about the colors of the faces of the BRICS since they know very well that they are people of color Chinese, Indians, Africans and others who are sometimes even better guardians of their own oppression than white supremacists. As such their concerns are likely to be more geopolitical and economic as represented by these global shifts that are manifested by the rise of China and other BRICS and the increasing assertion of developing countries particularly in Latin America in defense of political and economic sovereignty.

    However, as the struggle against the IMF and global finance continue to demand reforms and democracy at the IMF and other global institutions, the people of Greece have recently shown the IMF, Wall Street, the German Chancellor, Merkel and their servants in the US Congress and other power structures that victory against austerity policies and putting the interests of bankers over those of the people is not tenable. So, we take hope from the victory of the people of Greece that when all else fail the power of the people wins.

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