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COMMERCIAL POLICY BY ALEJANDRO VELEZ, PH.D. COMMERCIAL POLICY

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COMMERCIAL POLICY

BY

ALEJANDRO VELEZ, PH.D.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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COMMERCIAL POLICY

  • A WHOLE HOST OF ACTIONS BY SOVEREIGN GOVERNMENTS WHICH TRADITIONALLY HAVE CENTERED ON REGULATING IMPORTS (AND SOMETIMES EXPORTS, E.G., US SUPER COMPUTERS) BUT WHICH CAN ALSO INCLUDE POLICIES ON INVESTMENTS, THE ENVIRONMENT. LABOR, ETC.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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COMMERCIAL POLICY

  • HOW DOES THE US PROPOSE AND

    AND ENACT COMMERCIAL POLICY LEGISLATION?

  • DIFFERENTLY FROM OTHER DME’S!

  • HOW?

  • ______ AUTHORITY

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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COMMERCIAL POLICY

  • POLITICAL PARTIES AND PRESIDENTS HAVE VARIED IN APPROACHES BUT THERE HAS BEEN UNEXPECTED COMMONALITIES. I THINK ECONOMISTS HAVE BEEN A MAJOR REASON. CEA MAGNIFIED OUR INFLUENCE. GOOD RESEARCH AND PRESTIGE OF PROFESSION, ETC.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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COMMERCIAL POLICY

  • THE STRANGE CONVERSION OF WILLIAM J. CLINTON TO A FREE TRADER.

  • AL GORE MAY NOT BE SO CONVINCED??

  • NADER, BUCHANAN MAY BODE POORLY FOR FREE TRADE?

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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US COMMERCIAL POLICY

  • PRE-GATT

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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US COMMERCIAL POLICY

  • GATT UP TO COLLAPSE OF SOVIET UNION

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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US COMMERCIAL POLICY

  • 1989 TO LAUNCHING OF WTO

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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US COMMERCIAL POLICY

  • WTO

    • URUGUAY ROUND

    • ISSUES (INTELLECTUAL PROPERTY, SERVICE TRADE, BANKING/INVESTMENT, AGRICULTURAL SUBSIDIES, STEEL-CHEMICALS,

    • ACCOMPLISHMENTS

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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REFORM OF IMF, WORLD BANK: A CASE STUDY

  • MELTZER REPORT

    • BACKGROUND (R.V.,R.A.,L.C.,T.P.)

    • PROPOSALS (E.G.,S.H.,D.B.)

    • PROS AND CONS(J.H.,K.C.,D.S.,J.M.)

    • CONCLUSIONS (S.T., A.V.)

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer Commission (Background)

International Economics

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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International Financial Institution Advisory Commission

  • Established in 1998 to oversee American funding in International Financial Institutions

  • Had a very short life (6 months) and made many findings

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Reasons for Establishment

  • Congress wanted to know what good was coming from money that was used for Foreign Aid

  • Assessment of International Financial Institutions was wanted for the financing of future Foreign Aid Programs

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Reasons for Establishment (cont.)

  • Oversee roles of seven international financial institutions

    • IMF

    • World Bank

    • Inter-American Dev. Bank

    • Asian Dev. Bank

    • African Dev. Bank

    • WTO

    • Bank for International Settlements

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Votes of the Commission

  • Write-off all claims against HIPCS(heavily indebted poor countries)

  • End practice of extending long-term loans for poverty reduction

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Exchange Types

  • Bretton Woods (Fixed on the Dollar)

    • Establishes the IMF and World Bank to help in the redevelopment of torn countries from WWII

    • Aid was based on a fixed rate system

  • “Dirty Float” (No more fixed rates)

    • Causes problems with initial plans of IMF and World Bank- they were established to work with a fixed exchange rate

    • GATT established in 1948 to reduce tariff barriers.

    • WTO replaces GATT in 1995

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Problems of Institutions

  • High Cost with Low Effectiveness

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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REFORM OF IMF, WORLD BANK

  • MELTZER REPORT

    • POLITICS

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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REFORM OF IMF, WORLD BANK

  • MELTZER REPORT

    • ISSUES

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Major Proposals of the Bank for International Settlements

Proposals for Change and Growth

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Three Categories of the BIS’s Tasks

  • International Monetary and Financial Cooperation

  • Agent and Trustee activities

  • Financial Assistance to Central Banks

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Role of the BIS

  • Acts as secretariat for several committees who propose international standards and offer guidance on so called “best practices”.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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BIS Proposals

  • The Capital Accord, set minimum capital standards for international banks.

  • It called for linking capital requirements to a crude measure of the banks’ risk by assigning different risk weights for different categories of bank assets or commitments.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Capital Adequacy Framework

  • Expected to give banks more choice in assessing credit risk by allowing them to adopt an internal rating system.

  • This is used to set capital requirements and by linking required capital, where possible, to credit-rating agencies’ ratings of bank borrowers.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Conditions for Supervision

Licensing

Structure of the Banking System

Prudential Regulation

Methods of ongoing supervision

Information gathering and use

Powers of Supervisors

Cross-border Banking

Basal Committee on Banking Supervisions’ 25 Core Principles for Effective Banking Supervision (Principles Covered)

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Other Proposals of the BIS

  • The Commission recommends that the BIS remain a financial standard setter.

  • Implementation of standards, and decisions to adopt them should be left to domestic regulators or legislatures.

  • The Basel Committee on Bank Supervision should align its risk measures more closely with credit and market risk. Current practice encourages misallocation of lending.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Continuation of BIS Proposals

  • Some streamlining of the BIS organizational structure would be desirable

  • The Commission recommends that any expansion of membership in the BIS or its committees or groups be undertaken gradually and deliberately to avoid disruption of the information exchange that central bakers find valuable.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Created from the Bretton Woods system, the World Bank is an institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

The eventual goal: the Alleviation of Poverty Worldwide

The Development Banks

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Multilateral Banks institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • World Bank Group, Asian Development Bank, Inter-American Development Bank, and African Development Bank

  • World Bank thought that three banks could serve their constituencies better than a distant institution dominated by industrial countries.

  • Served as a dominant source of international resources to emerging economies up until the 1980’s.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Problems with Development Banks institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Cold War ended, strategic gesture became outmoded

  • New generation of public and private leadership arose in developing nations.

  • Dev. Banks differ in financial size; Africa is the smallest with 5-10% of the total amount.

  • Relative importance of banks has been declining.

  • In past 7 years, WB has lent $18 billion to LDC’s, as compared to the private sectors $1,450 billion.

  • WB must accept fact that they are no longer a significant source of funds to emerging economies.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Problems continued… institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Developing banks claim they lend to countries with denied access to market financing and private investors…but, all of the banks lend mainly to most credit-worthy countries; basically those that have private investors there already.

  • International Bank for Reconstruction and Development (IBRD) lending to LDC’s has fallen from 40% to 1% in six years.

  • 70% of the WB money is loaned out to a dozen economies, while the remaining 30% is divided up by 145 developing countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Problems continued… institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Crisis lending is IMF responsibility, not the WB’s.

  • Regional banks repeat the WB organizational structure. Recently, WB expanded its offices in some of the Regional bank areas only creating conflict, competition, and confusion.

  • Their patterns of lending in past 3 years are very similar: to the same countries and for the same purposes.

  • WB doesn’t need to pump in more money, the local banks and private investors can recover by themselves.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Recommendations institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Development Banks should be renamed as Development Agencies; it would define their role as the alleviators of poverty world wide.

  • Resource transfers to countries with a per capita income of <$4000 will be eliminated within five years; Starting at $2500, funding will be limited.

  • Funds expended based on “user fees.” “User fees” consist of working projects such as: vaccinated children, kilowatts of electricity delivered, cubic meters of water treated, passing literacy tests, miles of functioning roads…etc.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Recommendations continued institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • If the countries show improvement in specific areas, the money will be granted. No results, no funds.

  • The supplier of the service receives the money, not the government.

  • An obligation to meet the “user fees” imposes the discipline on the country receiving assistance. This replaces the deferred 20-50 yr payment schedule.

  • If grants are given instead of loans, receiver countries would not have to pay back the principal and interest.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Recommendations continued institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • The grants may consume large quantities of money of the Development Agencies and they would have to ask member countries for more money. But this has a positive aspect. It forces the Dev. Agencies to have better performance and credibility to ask for more funding.

  • Services would be performed by outside private-sector providers (NGO’s and charitable org.) or public-sector entities, and awarded on competitive bid.

  • Loans would be conditional upon a precise set of reforms, and disbursement would begin after institutional reforms are enacted.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Recommendations continued institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Regional programs should be the primary responsibility of their Regional Agencies: Asian, Inter-American, and African Agencies. No overlap from the World Bank and its regional partners.

  • WB is principal source of aid for ADB until it can manage on its own. WB should be the responsible for the Mid-East and few remaining European countries.

  • Should concentrate on production of world goods such as: treatment for AIDS, safeguard natural resources, inter-country infrastructure systems…etc.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Recommendations continued institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • World Development Agency should reduce its role in the private-sector, only giving technical assistance and setting practice standards. Investment, guarantees, and lending to private sector should be eliminated.

  • Multilateral Investment Guarantee Agency (MIGA) should be eliminated. Many countries already have their own political insurance agencies.

  • WB and Regional Banks should write-off entirely their claims against all heavily indebted poor countries

  • The United States should spend more to alleviate poverty.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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The Meltzer Commission institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

Chapter 5

The World Trade Organization

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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World Trade Organization-GATT institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Formerly known as GATT, the General Agreement on Tariff and Trade.

  • Two principle activities: agreements on nondiscriminatory reductions in tariff duties, quotas and other quantitative restrictions on trade in goods.

  • Managed dispute settlement procedures arising under the agreements.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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WTO institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • WTO replaced GATT January 1, 1995.

  • WTO agreement incorporated and extended earlier GATT agreements.

  • It also made two important additions:

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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WTO Commission Recommendations institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Two general areas:

    • General Principles of operation

    • The role of the WTO in promoting financial stability, safety, and soundness.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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General Principles institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Two main functions:

    • administers the process by which trade rules change

    • the WTO serves as a quasi-judicial body to settle disputes.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Effects of Quasi-judicial institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • There is some risk that WTO rulings will override national legislation in areas of health, safety, environment, and other regulatory policies.

  • The commission believes that quasi-judicial decisions of international organizations should not supplement legislative decisions.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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More recommendations institution where rich industrialized nations gather money in markets to distribute funds as loans to emerging members.

  • Rulings or decisions by the WTO under treaties or international agreements must remain subject to explicit legislative enactment by the US Congress or by the national legislative authority.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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This would limit the WTO’s authority to impose sanctions on a country for violation of rules.

Benefits: strengthens democratic accountability and precludes delegation and erosion the legislative function.

Instead of retaliation, countries guilty of illegal trade practices should pay an annual fine equal to the value of the damages assessed by the panel or provide equivalent trade liberalization.

………

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Commission recommends rules to enhance financial stability. on a country for violation of rules.

Such rules can reduce risk, spread best managerial practices, increase competition, and reduce the role of gov’t in the allocation of bank loans.

Commission also recommends that explicit min. financial standards be phased in as a condition for assistance from the IMF in a financial crisis.

Enforcement of the preconditions should remain the IMF’s responsibility.

Rules for financial stability

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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In the end... on a country for violation of rules.

  • Proposals and recommendations should be the responsibility of the groups on banking and financial standards.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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The WTO has proved effective in settling disputes about tariffs and trade restrictions.

It should not extend its procedures to set domestic policies and regulations, including regulation of banking services, accounting practices, or financial standards.

These should remain the responsibility of specialized agencies.

Conclusion

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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International Monetary Fund tariffs and trade restrictions.

By: Dianna Bejarano

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Beginnings: tariffs and trade restrictions.

  • Established at the Bretton Woods Conference after WWII to prevent a reoccurrence of monetary & financial instability.

  • The founders expected the IMF to “make short-term loans to assist countries with payment deficits and to advise countries that failed to remove controls on currents accounts.”

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Some Problems: tariffs and trade restrictions.

  • IMF assistance postponed debt reduction.

  • IMF assistance delayed renegotiation of the debt & the resumption of capital inflows, investment and economic recovery.

  • IMF control often undermined the sovereignty and democratic processes of member govt’s.

  • IMF is deficient in providing liquidity during crises.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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The Mission of the New IMF: tariffs and trade restrictions.

  • The commission recommends that the IMF……

    ‣act as a quasi-lender of last resort to solvent emerging economies by providing short-term liquidity.

    --IMF loans should have a short maturity (max 120 days)

    --IMF loans should have a penalty rate

    --IMF would be considered a “stand-by lender”

    --in a crisis, the Fund should borrow convertible currencies

    as needed to finance short-term liquidity loans.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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(Continued) tariffs and trade restrictions.

‣ collect and publish financial & economic data from

member countries, and disseminate those data in a timely & uniform manner.

‣ provide advice (but not impose conditions)

relating to economic policy.

‣should uphold that if member countries default on their loan debs that they would not be eligible for help from other multilateral agencies or other member countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Reform of imf world bank54 l.jpg
REFORM OF IMF, WORLD BANK tariffs and trade restrictions.

  • MELTZER REPORT

    • PRO AND CON IN THE PRESS

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


World opinion on meltzer commission l.jpg

World Opinion on Meltzer Commission tariffs and trade restrictions.

Fernando Lopez

“chema” Monterey

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Treasury reply to imf world bank reform commission report l.jpg
Treasury Reply to IMF/World Bank Reform Commission Report tariffs and trade restrictions.

  • The U.S. Department of the Treasury has rejected core recommendations of the Congressional-appointed International Financial Institution Advisory Commission report, saying they would so weaken the International Monetary Fund (IMF) and the multilateral development banks that these institutions could no longer serve vital U.S. interests.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Financial daily from the hindu group of publications on indiaserver com monday march 27 2000 l.jpg
Financial Daily tariffs and trade restrictions.from THE HINDU group of publications on indiaserver.comMonday, March 27, 2000

  • Now, the Meltzer Commission has recommended a drastic change in the scope and size of operations of the Bretton Wood twins. These recommendations show sensitivity to policy failures of the IMF/IBRD, both in the South-East Asian crisis and in Russia. Perhaps, these changes, suggested by the Meltzer group, are inevitable. Many other experts also believed that the IMF was becoming too powerful for its own good. The suggested changes would, however, reduce the IMF's role to essentially a vendor of short-term loans. No longer can it try to cross over to a larger-than-life vision of taking part in the long-term development of the world.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer report j bradford delong may 2000 l.jpg
The Meltzer Report tariffs and trade restrictions.J. Bradford DeLongMay 2000

  • Last March the Meltzer Commission--established by the U.S. Congress as part and parcel of the legislation adding $18 billion to the U.S.'s capital contribution to the IMF--issued its Report. The press registered that the Commission had called for thorough-going reforms of the World Bank and IMF. But it quickly dropped from sight: the Report was more than 100 pages long. Much of it was written in economese, that peculiar language that only academic economists speak with fluency.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Reshaping imf and world bank meltzer commission report april 8 14 2000 l.jpg
Reshaping IMF and World Bank tariffs and trade restrictions.Meltzer Commission ReportApril 8-14, 2000

  • The report has a broad remit, extending, besides the IMF and the World Bank to the regional development banks, the Bank for International Settlements (BIS) and the World Trade Organization. But the last two are peripheral to the main thrust of the report. The focus of the report is on the IMF and the World Bank. The commission has tried to reassess their role in the new economic environment which has changed the conditions governing their functioning.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer commission and the g 7 l.jpg
The Meltzer Commission And the G-7 tariffs and trade restrictions.

  • The commission’s reforms will no doubt challenge vested interests, whether they be the internal bureaucracies of the institutions which would lose their empires or the ruling elites in the developing countries which in the past have acquired squatters’ rights on the funds of the IMF and the World Bank or the industrial countries which influence these international institutions, particularly the IMF, to provide ‘slush funds’ to support the decisions of the G-7 finance ministers or other groups of powerful members.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide61 l.jpg
MELTZER REPORT MISSES THE MARK tariffs and trade restrictions.Commission’s recommendations for World Bank, IMF need further consideration

  • Three issues in the commission’s report – debt forgiveness, capital controls, and development policies – warrant further consideration. The first of these involves debt forgiveness. The commission agrees that debt forgiveness for highly indebted poor countries (HIPCs) should be one of the first steps in reforming the global financial system

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide62 l.jpg
MELTZER REPORT MISSES THE MARK tariffs and trade restrictions.Commission’s recommendations for World Bank, IMF need further consideration

  • As for the second issue – capital controls – the commission does not seem to recognize these as useful public policy tools, but its recommendations, when examined closely, are contradictory. The final issue involves the parameters of the development debate, which the commission defines too narrowly. The commission encourages fiscal and monetary restraint and financial deregulation – which have been shown to be harmful to working people – and continues to ignore the growing criticism of increased labor market flexibility

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide63 l.jpg
MELTZER REPORT MISSES THE MARK tariffs and trade restrictions.Commission’s recommendations for World Bank, IMF need further consideration

  • Redesigning the international financial institutionsThe IMF and World Bank have been criticized for their mishandling of financial crises and the ineffective design and implementation of development projects, providing an impetus to reform these and other international financial institutions (IFIs). Fortunately, the issue is no longer whether, but how these institutions should be reformed.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide64 l.jpg

Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • WASHINGTON, DC, March 7, 2000 - A coalition of development and environmental advocates today said a new report by a Congressionally appointed commission is a welcome acknowledgement that the International Monetary Fund (IMF) and World Bank Group are largely failing in their mission to address world poverty and economic stability, and need major overhaul. However, the groups say that while the report contains some laudable recommendations, it fails to address other key fundamental problems

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide65 l.jpg

Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • According to the report, written by a panel of economists headed by Allan Meltzer, the failures of the World Bank Group and IMF can be traced to "overlapping missions," "ineffectiveness, corruption, and waste of resources," and failure to develop successful regional programs in agriculture, forestry, environment, health care, and other sectors - among other problems. But while the Commission also said "lack of transparency and accountability" contributed to this failure, it did not offer any reforms to address this problem.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Meltzer report wants wto powers reined in l.jpg
Meltzer report wants WTO powers reined in and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The only unanimous recommendations of the Meltzer Commission are those that: (1) the IMF, the World Bank and the regional development banks write off in their entirety all claims against the heavily indebted poor countries (HIPCs), and (2) the IMF should restrict its lending to the provision of short-term liquidity and end its current practice of extending long-term loans for poverty reduction and other purposes

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Limiting the Scope of the World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredby James D. Wolfensohn

  • We are, of course, pleased that the issue of poverty reduction should be headline news. We share the commission’s concern that more must be done by all the players in the fight against poverty, and we applaud all who broach this difficult subject. We also welcome the commission’s call for debt relief, and we hope that funding support from Congress will follow it. This is crucial.

  • We nevertheless believe that a number of the commission’s proposals are based on a fundamental misreading of the development challenges we face today. Poor people in developing countries will be the losers if these proposals are implemented. If the World Bank were to withdraw entirely from Asia and from Latin America; if it were to stop lending to countries with a per capita income above $4,000 a year, it would cut out the marginalized, the poorest, the excluded who live in these countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Commission report has IMF, WB shaking and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMarch 6, 2000

  • US COMMISSION REPORT ON IMF, WORLD BANK REFORMS DUE SHORTLY. As if the IMF needed some more bad news, it is about to be told by a new report that it should engage in some serious downsizing, says the FT's "Observer" column (p.17). The thoughts of the report's chief authors are poised to come out on Wednesday, when a US congressional commission on international financial institutions makes its own views known. Among other big changes it is likely to recommend, it wants to make the IMF just a provider of emergency finance and turn the World Bank into a provider of grants, not loans.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


World opinion on meltzer commission69 l.jpg

World Opinion on Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Fernando Lopez

chema Monterey

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Treasury reply to imf world bank reform commission report70 l.jpg
Treasury Reply to IMF/World Bank Reform Commission Report and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The U.S. Department of the Treasury has rejected core recommendations of the Congressional-appointed International Financial Institution Advisory Commission report, saying they would so weaken the International Monetary Fund (IMF) and the multilateral development banks that these institutions could no longer serve vital U.S. interests.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Financial daily from the hindu group of publications on indiaserver com monday march 27 200071 l.jpg
Financial Daily and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredfrom THE HINDU group of publications on indiaserver.comMonday, March 27, 2000

  • Now, the Meltzer Commission has recommended a drastic change in the scope and size of operations of the Bretton Woods twins. These recommendations show sensitivity to policy failures of the IMF/IBRD, both in the South-East Asian crisis and in Russia. Perhaps, these changes, suggested by the Meltzer group, are inevitable. Many other experts also believed that the IMF was becoming too powerful for its own good. The suggested changes would, however, reduce the IMF's role to essentially a vendor of short-term loans. No longer can it try to cross over to a larger-than-life vision of taking part in the long-term development of the world.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer report j bradford delong may 200072 l.jpg
The Meltzer Report and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredJ. Bradford DeLongMay 2000

  • Last March the Meltzer Commission--established by the U.S. Congress as part and parcel of the legislation adding $18 billion to the U.S.'s capital contribution to the IMF--issued its Report. The press registered that the Commission had called for thorough-going reforms of the World Bank and IMF. But it quickly dropped from sight: the Report was more than 100 pages long. Much of it was written in economese, that peculiar language that only academic economists speak with fluency.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Reshaping imf and world bank meltzer commission report april 8 14 200073 l.jpg
Reshaping IMF and World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMeltzer Commission ReportApril 8-14, 2000

  • The report has a broad remit, extending, besides the IMF and the World Bank to the regional development banks, the Bank for International Settlements (BIS) and the World Trade Organization. But the last two are peripheral to the main thrust of the report. The focus of the report is on the IMF and the World Bank. The commission has tried to reassess their role in the new economic environment which has changed the conditions governing their functioning.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer commission and the g 774 l.jpg
The Meltzer Commission And the G-7 and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The commission’s reforms will no doubt challenge vested interests, whether they be the internal bureaucracies of the institutions which would lose their empires or the ruling elites in the developing countries which in the past have acquired squatters’ rights on the funds of the IMF and the World Bank or the industrial countries which influence these international institutions, particularly the IMF, to provide ‘slush funds’ to support the decisions of the G-7 finance ministers or other groups of powerful members.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide75 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Three issues in the commission’s report – debt forgiveness, capital controls, and development policies – warrant further consideration. The first of these involves debt forgiveness. The commission agrees that debt forgiveness for highly indebted poor countries (HIPCs) should be one of the first steps in reforming the global financial system

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide76 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • As for the second issue – capital controls – the commission does not seem to recognize these as useful public policy tools, but its recommendations, when examined closely, are contradictory. The final issue involves the parameters of the development debate, which the commission defines too narrowly. The commission encourages fiscal and monetary restraint and financial deregulation – which have been shown to be harmful to working people – and continues to ignore the growing criticism of increased labor market flexibility

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide77 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Redesigning the international financial institutionsThe IMF and World Bank have been criticized for their mishandling of financial crises and the ineffective design and implementation of development projects, providing an impetus to reform these and other international financial institutions (IFIs). Fortunately, the issue is no longer whether, but how these institutions should be reformed.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide78 l.jpg

Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • WASHINGTON, DC, March 7, 2000 - A coalition of development and environmental advocates today said a new report by a Congressionally appointed commission is a welcome acknowledgement that the International Monetary Fund (IMF) and World Bank Group are largely failing in their mission to address world poverty and economic stability, and need major overhaul. However, the groups say that while the report contains some laudable recommendations, it fails to address other key fundamental problems

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide79 l.jpg

Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • According to the report, written by a panel of economists headed by Allan Meltzer, the failures of the World Bank Group and IMF can be traced to "overlapping missions," "ineffectiveness, corruption, and waste of resources," and failure to develop successful regional programs in agriculture, forestry, environment, health care, and other sectors - among other problems. But while the Commission also said "lack of transparency and accountability" contributed to this failure, it did not offer any reforms to address this problem.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Meltzer report wants wto powers reined in80 l.jpg
Meltzer report wants WTO powers reined in and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The only unanimous recommendations of the Meltzer Commission are those that: (1) the IMF, the World Bank and the regional development banks write off in their entirety all claims against the heavily indebted poor countries (HIPCs), and (2) the IMF should restrict its lending to the provision of short-term liquidity and end its current practice of extending long-term loans for poverty reduction and other purposes

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Limiting the scope of the world bank by james d wolfensohn81 l.jpg
Limiting the Scope of the World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredby James D. Wolfensohn

  • We are, of course, pleased that the issue of poverty reduction should be headline news. We share the commission’s concern that more must be done by all the players in the fight against poverty, and we applaud all who broach this difficult subject. We also welcome the commission’s call for debt relief, and we hope that funding support from Congress will follow it. This is crucial.

  • We nevertheless believe that a number of the commission’s proposals are based on a fundamental misreading of the development challenges we face today. Poor people in developing countries will be the losers if these proposals are implemented. If the World Bank were to withdraw entirely from Asia and from Latin America; if it were to stop lending to countries with a per capita income above $4,000 a year, it would cut out the marginalized, the poorest, the excluded who live in these countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Commission report has imf wb shaking march 6 200082 l.jpg
Commission report has IMF, WB shaking and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMarch 6, 2000

  • US COMMISSION REPORT ON IMF, WORLD BANK REFORMS DUE SHORTLY. As if the IMF needed some more bad news, it is about to be told by a new report that it should engage in some serious downsizing, says the FT's "Observer" column (p.17). The thoughts of the report's chief authors are poised to come out on Wednesday, when a US congressional commission on international financial institutions makes its own views known. Among other big changes it is likely to recommend, it wants to make the IMF just a provider of emergency finance and turn the World Bank into a provider of grants, not loans.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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World Opinion on Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Fernando Lopez

chema Monterey

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Treasury reply to imf world bank reform commission report84 l.jpg
Treasury Reply to IMF/World Bank Reform Commission Report and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The U.S. Department of the Treasury has rejected core recommendations of the Congressional-appointed International Financial Institution Advisory Commission report, saying they would so weaken the International Monetary Fund (IMF) and the multilateral development banks that these institutions could no longer serve vital U.S. interests.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Financial daily from the hindu group of publications on indiaserver com monday march 27 200085 l.jpg
Financial Daily and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredfrom THE HINDU group of publications on indiaserver.comMonday, March 27, 2000

  • Now, the Meltzer Commission has recommended a drastic change in the scope and size of operations of the Bretton Woods twins. These recommendations show sensitivity to policy failures of the IMF/IBRD, both in the South-East Asian crisis and in Russia. Perhaps, these changes, suggested by the Meltzer group, are inevitable. Many other experts also believed that the IMF was becoming too powerful for its own good. The suggested changes would, however, reduce the IMF's role to essentially a vendor of short-term loans. No longer can it try to cross over to a larger-than-life vision of taking part in the long-term development of the world.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer report j bradford delong may 200086 l.jpg
The Meltzer Report and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredJ. Bradford DeLongMay 2000

  • Last March the Meltzer Commission--established by the U.S. Congress as part and parcel of the legislation adding $18 billion to the U.S.'s capital contribution to the IMF--issued its Report. The press registered that the Commission had called for thorough-going reforms of the World Bank and IMF. But it quickly dropped from sight: the Report was more than 100 pages long. Much of it was written in economese, that peculiar language that only academic economists speak with fluency.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Reshaping imf and world bank meltzer commission report april 8 14 200087 l.jpg
Reshaping IMF and World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMeltzer Commission ReportApril 8-14, 2000

  • The report has a broad remit, extending, besides the IMF and the World Bank to the regional development banks, the Bank for International Settlements (BIS) and the World Trade Organization. But the last two are peripheral to the main thrust of the report. The focus of the report is on the IMF and the World Bank. The commission has tried to reassess their role in the new economic environment which has changed the conditions governing their functioning.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


The meltzer commission and the g 788 l.jpg
The Meltzer Commission And the G-7 and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The commission’s reforms will no doubt challenge vested interests, whether they be the internal bureaucracies of the institutions which would lose their empires or the ruling elites in the developing countries which in the past have acquired squatters’ rights on the funds of the IMF and the World Bank or the industrial countries which influence these international institutions, particularly the IMF, to provide ‘slush funds’ to support the decisions of the G-7 finance ministers or other groups of powerful members.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide89 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Three issues in the commission’s report – debt forgiveness, capital controls, and development policies – warrant further consideration. The first of these involves debt forgiveness. The commission agrees that debt forgiveness for highly indebted poor countries (HIPCs) should be one of the first steps in reforming the global financial system

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide90 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • As for the second issue – capital controls – the commission does not seem to recognize these as useful public policy tools, but its recommendations, when examined closely, are contradictory. The final issue involves the parameters of the development debate, which the commission defines too narrowly. The commission encourages fiscal and monetary restraint and financial deregulation – which have been shown to be harmful to working people – and continues to ignore the growing criticism of increased labor market flexibility

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide91 l.jpg
MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Redesigning the international financial institutionsThe IMF and World Bank have been criticized for their mishandling of financial crises and the ineffective design and implementation of development projects, providing an impetus to reform these and other international financial institutions (IFIs). Fortunately, the issue is no longer whether, but how these institutions should be reformed.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


Slide92 l.jpg

Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • WASHINGTON, DC, March 7, 2000 - A coalition of development and environmental advocates today said a new report by a Congressionally appointed commission is a welcome acknowledgement that the International Monetary Fund (IMF) and World Bank Group are largely failing in their mission to address world poverty and economic stability, and need major overhaul. However, the groups say that while the report contains some laudable recommendations, it fails to address other key fundamental problems

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • According to the report, written by a panel of economists headed by Allan Meltzer, the failures of the World Bank Group and IMF can be traced to "overlapping missions," "ineffectiveness, corruption, and waste of resources," and failure to develop successful regional programs in agriculture, forestry, environment, health care, and other sectors - among other problems. But while the Commission also said "lack of transparency and accountability" contributed to this failure, it did not offer any reforms to address this problem.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer report wants WTO powers reined in and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The only unanimous recommendations of the Meltzer Commission are those that: (1) the IMF, the World Bank and the regional development banks write off in their entirety all claims against the heavily indebted poor countries (HIPCs), and (2) the IMF should restrict its lending to the provision of short-term liquidity and end its current practice of extending long-term loans for poverty reduction and other purposes

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Limiting the Scope of the World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredby James D. Wolfensohn

  • We are, of course, pleased that the issue of poverty reduction should be headline news. We share the commission’s concern that more must be done by all the players in the fight against poverty, and we applaud all who broach this difficult subject. We also welcome the commission’s call for debt relief, and we hope that funding support from Congress will follow it. This is crucial.

  • We nevertheless believe that a number of the commission’s proposals are based on a fundamental misreading of the development challenges we face today. Poor people in developing countries will be the losers if these proposals are implemented. If the World Bank were to withdraw entirely from Asia and from Latin America; if it were to stop lending to countries with a per capita income above $4,000 a year, it would cut out the marginalized, the poorest, the excluded who live in these countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Commission report has IMF, WB shaking and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMarch 6, 2000

  • US COMMISSION REPORT ON IMF, WORLD BANK REFORMS DUE SHORTLY. As if the IMF needed some more bad news, it is about to be told by a new report that it should engage in some serious downsizing, says the FT's "Observer" column (p.17). The thoughts of the report's chief authors are poised to come out on Wednesday, when a US congressional commission on international financial institutions makes its own views known. Among other big changes it is likely to recommend, it wants to make the IMF just a provider of emergency finance and turn the World Bank into a provider of grants, not loans.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer Report and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredPros and Cons

Dennis Stanko

Keely Collins

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Pros and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • Report recognizes the pitfalls of the current IMF system- cause of social and environmental damage, IMF and World Bank’s inability to address world poverty and economic stability

  • Finds correctly that the World Bank should restrict financial support to sectors that have a direct and demonstrable connection to poverty alleviation and sustainable development.

  • Makes valid recommendations:

    • IMF should restrict lending to the provision of short-term liquidity countries in financial difficulties.

    • Loans should only be made to countries that have met preconditions for financial soundness.

    • World Bank should focus efforts on low-income countries that lack access to capital markets.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Cons and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • Doesn’t address the need to develop accountability and democracy in the IMF.

  • Doesn’t address changes in society- move from fixed exchange, absence of cold-war concerns.

  • Doesn’t specifically address how to aid the countries that don’t qualify/

  • Fails to address greater need for attention to the environmental and social implications through assessments.

    • For example- it overlooks a number of important sectors that can help fulfill this mandate to benefit the social and environmental aspects such as investments in renewable energy, education, and improved urban living.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Sources and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

www.igc.org/trac/headlines/2000

Press Release- Friends of the Earth/Center of Concern. “USA: Congressional Panel Says IMF, World Bank Fail to Help Poor.” March 7, 2000

Wolf, Martin. “USA: Between Revolution and Reform-The Meltzer Commission’s Vision.” Financial Times. March 8, 2000.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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US COMMERCIAL POLICY and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • SOME KEY IDEAS

  • CONCLUSIONS

  • THESE COULD BE VERY INTERESTING TIMES AHEAD!

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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World Opinion on Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Fernando Lopez

chema Monterey

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Treasury Reply to IMF/World Bank Reform Commission Report and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The U.S. Department of the Treasury has rejected core recommendations of the Congressional-appointed International Financial Institution Advisory Commission report, saying they would so weaken the International Monetary Fund (IMF) and the multilateral development banks that these institutions could no longer serve vital U.S. interests.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Financial Daily and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredfrom THE HINDU group of publications on indiaserver.comMonday, March 27, 2000

  • Now, the Meltzer Commission has recommended a drastic change in the scope and size of operations of the Bretton Woods twins. These recommendations show sensitivity to policy failures of the IMF/IBRD, both in the South-East Asian crisis and in Russia. Perhaps, these changes, suggested by the Meltzer group, are inevitable. Many other experts also believed that the IMF was becoming too powerful for its own good. The suggested changes would, however, reduce the IMF's role to essentially a vendor of short-term loans. No longer can it try to cross over to a larger-than-life vision of taking part in the long-term development of the world.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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The Meltzer Report and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredJ. Bradford DeLongMay 2000

  • Last March the Meltzer Commission--established by the U.S. Congress as part and parcel of the legislation adding $18 billion to the U.S.'s capital contribution to the IMF--issued its Report. The press registered that the Commission had called for thorough-going reforms of the World Bank and IMF. But it quickly dropped from sight: the Report was more than 100 pages long. Much of it was written in economese, that peculiar language that only academic economists speak with fluency.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Reshaping IMF and World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMeltzer Commission ReportApril 8-14, 2000

  • The report has a broad remit, extending, besides the IMF and the World Bank to the regional development banks, the Bank for International Settlements (BIS) and the World Trade Organization. But the last two are peripheral to the main thrust of the report. The focus of the report is on the IMF and the World Bank. The commission has tried to reassess their role in the new economic environment which has changed the conditions governing their functioning.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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The Meltzer Commission And the G-7 and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The commission’s reforms will no doubt challenge vested interests, whether they be the internal bureaucracies of the institutions which would lose their empires or the ruling elites in the developing countries which in the past have acquired squatters’ rights on the funds of the IMF and the World Bank or the industrial countries which influence these international institutions, particularly the IMF, to provide ‘slush funds’ to support the decisions of the G-7 finance ministers or other groups of powerful members.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Three issues in the commission’s report – debt forgiveness, capital controls, and development policies – warrant further consideration. The first of these involves debt forgiveness. The commission agrees that debt forgiveness for highly indebted poor countries (HIPCs) should be one of the first steps in reforming the global financial system

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • As for the second issue – capital controls – the commission does not seem to recognize these as useful public policy tools, but its recommendations, when examined closely, are contradictory. The final issue involves the parameters of the development debate, which the commission defines too narrowly. The commission encourages fiscal and monetary restraint and financial deregulation – which have been shown to be harmful to working people – and continues to ignore the growing criticism of increased labor market flexibility

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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MELTZER REPORT MISSES THE MARK and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredCommission’s recommendations for World Bank, IMF need further consideration

  • Redesigning the international financial institutionsThe IMF and World Bank have been criticized for their mishandling of financial crises and the ineffective design and implementation of development projects, providing an impetus to reform these and other international financial institutions (IFIs). Fortunately, the issue is no longer whether, but how these institutions should be reformed.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • WASHINGTON, DC, March 7, 2000 - A coalition of development and environmental advocates today said a new report by a Congressionally appointed commission is a welcome acknowledgement that the International Monetary Fund (IMF) and World Bank Group are largely failing in their mission to address world poverty and economic stability, and need major overhaul. However, the groups say that while the report contains some laudable recommendations, it fails to address other key fundamental problems

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Congressionally-appointed Panel Acknowledges Failures of IMF and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • According to the report, written by a panel of economists headed by Allan Meltzer, the failures of the World Bank Group and IMF can be traced to "overlapping missions," "ineffectiveness, corruption, and waste of resources," and failure to develop successful regional programs in agriculture, forestry, environment, health care, and other sectors - among other problems. But while the Commission also said "lack of transparency and accountability" contributed to this failure, it did not offer any reforms to address this problem.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer report wants WTO powers reined in and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • The only unanimous recommendations of the Meltzer Commission are those that: (1) the IMF, the World Bank and the regional development banks write off in their entirety all claims against the heavily indebted poor countries (HIPCs), and (2) the IMF should restrict its lending to the provision of short-term liquidity and end its current practice of extending long-term loans for poverty reduction and other purposes

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Limiting the Scope of the World Bank and World Bank to Help the World's Poor, But Lack of Accountability Remains Unansweredby James D. Wolfensohn

  • We are, of course, pleased that the issue of poverty reduction should be headline news. We share the commission’s concern that more must be done by all the players in the fight against poverty, and we applaud all who broach this difficult subject. We also welcome the commission’s call for debt relief, and we hope that funding support from Congress will follow it. This is crucial.

  • We nevertheless believe that a number of the commission’s proposals are based on a fundamental misreading of the development challenges we face today. Poor people in developing countries will be the losers if these proposals are implemented. If the World Bank were to withdraw entirely from Asia and from Latin America; if it were to stop lending to countries with a per capita income above $4,000 a year, it would cut out the marginalized, the poorest, the excluded who live in these countries.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Commission report has IMF, WB shaking and World Bank to Help the World's Poor, But Lack of Accountability Remains UnansweredMarch 6, 2000

  • US COMMISSION REPORT ON IMF, WORLD BANK REFORMS DUE SHORTLY. As if the IMF needed some more bad news, it is about to be told by a new report that it should engage in some serious downsizing, says the FT's "Observer" column (p.17). The thoughts of the report's chief authors are poised to come out on Wednesday, when a US congressional commission on international financial institutions makes its own views known. Among other big changes it is likely to recommend, it wants to make the IMF just a provider of emergency finance and turn the World Bank into a provider of grants, not loans.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Conclusions and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Conclusions and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Meltzer Commission

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

  • Established to oversee how American funds were being spent by international financial institutions.

    • Lobbied for reform within international financial institutions (e.g. World Bank, IMF, and WTO).

      • These Reforms would enhance global financial stability

      • Commission can monitor the world economy and focus on diminishing the probability of crises occurring.

    • Created the Bank for International Settlements to encourage efficiency and growth in world banking.

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Transparency about IMF, WB operations

Deficiencies in IMF-WB projects

Need to respect countries’ sovereignty

Green Agenda has been partly included

Poor PR job on part of reformers

Media has contributed to radicalizing debate

Foreign press supportive but pessimistic

IMF/WB on defensive, defending its scalp

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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Meltzer Commission and World Bank to Help the World's Poor, But Lack of Accountability Remains Unanswered

Need for WB/IMF administrative overhaul

WTO partial overhaul

More sensitivity to nationalism

Sharper mission statements

S. Hernandez, E. Gonzalez,D. Bejarano, L. Cabanilla,F.Lopez, A. Velez,R.Valencia, R.Ashley, S.Torres,J. Hinojosa, K. Collins, D.Stanko, J. Monterey


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