[The IMF has, says Congress and the NYTimes, become more inclusive of China and Russia (see previous Frontlines post, https://revolutionaryfrontlines.wordpress.com/2015/12/29/ny-times-on-the-liberalizing-of-the-international-monetary-fund/). But others, looking deeply, see the new IMF rules as counter-attacks on Chinese and Russian other-imperialist initiatives. See this lengthy article for more details. — Frontlines ed.]
The nightmare scenario of U.S. geopolitical strategists seems to be coming true: foreign economic independence from U.S. control. Instead of privatizing and neoliberalizing the world under U.S.-centered financial planning and ownership, the Russian and Chinese governments are investing in neighboring economies on terms that cement Eurasian economic integration on the basis of Russian oil and tax exports and Chinese financing. The Asian Infrastructure Investment Bank (AIIB) threatens to replace the IMF and World Bank programs that favor U.S. suppliers, banks and bondholders (with the United States holding unique veto power).
Russia’s 2013 loan to Ukraine, made at the request of Ukraine’s elected pro-Russian government, demonstrated the benefits of mutual trade and investment relations between the two countries. As Russian finance minister Anton Siluanov points out, Ukraine’s “international reserves were barely enough to cover three months’ imports, and no other creditor was prepared to lend on terms acceptable to Kiev. Yet Russia provided $3 billion of much-needed funding at a 5 per cent interest rate, when Ukraine’s bonds were yielding nearly 12 per cent.”Continue reading →
[The IMF and the World Bank are key instruments of the finance/montary/credit-debt management of the entire world. Enacted at the end of WWII to establish US leadership of the world imperialist system, both IMF and WB have come under endless criticism and challenges over the decades, but the emergence of new imperialist powers from post-socialist Russia and China has posed historically-contending blocs-in-formation as unprecedented dangers to the once-presumed “permanent” US hegemony. Both IMF and WB have become increasingly tattered and less effective instruments, as challenges have grown. Congressional reforms aimed at a more durable structure for the IMF are hailed by the media-of-empire NY Times in the following editorial, which writes, strategically, ‘If the fund and the World Bank are to remain relevant and be truly global organizations, they cannot be seen as European and American fiefs.’ — Frontlines ed.]
Congress Gets Out of the I.M.F.’s Way
By The New York TimesEDITORIAL BOARD, December. 22, 2015
The House went into holiday recess after passing a measure that included ratification of International Monetary Fund reforms.
After five years of Republican foot-dragging, members of Congress last week ratified an agreement that will increase the capital of the International Monetary Fund and give developing countries like China and India a greater say in the organization.
This should strengthen the fund at a time when its expertise is needed to help revive a slowing global economy. In 2010, the Obama administration negotiated an agreement with other countries to double the I.M.F.’s capital to about $755 billion, so it could lend more money to troubled countries like Greece and Spain. The changes also gave more voting power in the fund’s management to China, India, Brazil and Russia while slightly reducing the clout of European countries and the United States. Continue reading →
Investigation Tears Veil Off World Bank’s “Promise” to Eradicate Poverty
by Kanya DAlmeida (united nations), Inter Press Service, Thursday, April 16, 2015
UNITED NATIONS, Apr 16 (IPS) – An expose published Thursday by the International Consortium of Investigative Journalists (ICIJ) and its media partners has revealed that in the course of a single decade, 3.4 million people were evicted from their homes, torn away from their lands or otherwise displaced by projects funded by the World Bank.
Nearly 50 percent of the estimated 3.4 million people who were physically or economically displaced by World Bank-funded projects in the last decade were from Africa and Asia. Credit: Abdurrahman Warsameh/IPS
Over 50 journalists from 21 countries worked for nearly 12 months to systematically analyse the bank’s promise to protect vulnerable communities from the negative impacts of its own projects.
Reporters around the world – from Ghana to Guatemala, Kenya to Kosovo and South Sudan to Serbia – read through thousands of pages of World Bank records, interviewed scores of people including former Bank employees and carefully documented over 10 years of lapses in the financial institution’s practices, which have rendered poor farmers, urban slum-dwellers, indigenous communities and destitute fisherfolk landless, homeless or jobless. Continue reading →