[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 Times EDITORIAL 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