Saturday, April 26

US fails to support IMF reform

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.


susan said...

This is an interesting aspect on developments internationally I hadn't been aware of until now, Lindsay.

Both the Tea Party and the Heritage Foundation are underwritten and ruled by the wealthiest members of American society. The Right - the ideological supporters of plutocrats - won't even process evidence, logic, and analysis. Nevertheless, there's a large number of Americans who are disgusted with the ongoing power grabs by the plutocrats. You might find the numbers quoted in this article interesting.

Any system absent a basic ethical framework and sense of community is doomed. It seems to me that a lot of countries are looking closely at the new Russia and China agreements that would benefit more Eurozone countries economicly than hanging out with the neighbourhood bully. Should Brazil and India throw in with Russia and China, things (ie, the petro-dollar) could change quickly.

Best wishes.

Lindsay Byrnes said...

Hi Susan,
Thanks for your interest and for the reference which I think sums up much of the problem is due to the extraordinary amount of money needed to be elected, “the vast majority of campaigns for federal office are won by the candidate that raises the most money".
Best wishes