In ”Hockey slams US for blocking IMF reform” (Australian Financial Review 11thApril 2014) Treasurer Joe Hockey has conceded that Australia’s G20 goal of ushering through governance reforms to the International Monetary Fund is likely to fail, causing him to lash the US Congress for blocking the changes.
Hockey is justified in his criticism of the US Republican Party who have thwarted plans for IMF reforms , notwithstanding those moves were backed by almost all other nations, to increase bailout funds by US314m (A335m) and give China more say in management.The inescapable conclusion is the US is currently under hostage to the Tea Party and the far-right Heritage Foundation, who continues to demonstrate a great distrust for all multilateral institutions. But such intransience underpins the reasons we are unable to make any progress, as we simply can’t trust one another.
The wider question to ask is why should G20 countries support Washington's global economic expansionary policies and persuade others to adopt its agenda to punish Moscow for its position against the Ukraine, given its lack of support to reform the IMF, a move previously agreed upon.
The U.S. deserves the strongest possible condemnation from Hockey for its insular approach to global good governance and lack of concern in providing sound economic leadership by supporting the IMF.
The best option is now to implement "Plan B" reforms without Washington's consent, which will involve closer links with those who are willing to be part of the team.