Europe and the US are good at being fair. What makes IMF and World Bank work, if they do, is having fair countries run them. Emerging countries are backwards because their courts, government, schools, businesses, etc. are bad at being fair and reasonable. So they fail as societies.
It isn’t money. If China and Russia set up their own IMF and World Bank with their money, they will fail. Those countries are poorly run by bad people who are corrupt. They will fail at running institutions.
The main job of IMF and World Bank is to fight unfairness by governments in the third world. Their job is not giving money to dictators or corrupt judges. Their job is to make people be fair.
The important thing IMF and World Bank do is not give money, its to signal which governments are fair and which are not. That is why America, Australia, Canada, Europe, and New Zealand should run the IMF and World Bank. These are the places that do fairness. The others don’t, whether they are rich or not.
What came of the oil money? What does Saudi aid do? Fund terrorism and war that destabilizes countries and regions, and ultimately us.
China and Russia are bad. They can’t do good. Those who go to their IMF and World Bank will be showing they are criminals exploiting their people and engaged in corruption. China and Russia out of the World Bank and IMF would be a step forward. Same with Saudi Arabia.
WASHINGTON, Oct 20 (Reuters) – U.S. Treasury Under Secretary David McCormick said on Saturday that progress so far in amending the International Monetary Fund’s voting power to give emerging nations more recognition is disappointing.
“We’re disappointed that we haven’t moved forward more quickly,” McCormick told reporters in a telephone news conference. “It’s one of those things where we’ve made some progress but not enough.”
Outgoing IMF managing director Rodrigo Rato initiated the effort to reform the Fund by strengthening the way it monitors the world economy and currency exchange rates and by revamping its voting structure to better reflect the rising importance of emerging powers like India and China.
India is a borrower and is still very thin in being developed. This not reforming IMF, this is killing the good in it, and leaving just the bad. The academics may have understood it better, even if they were flawed.