Who runs the world__ Wrestling for influence _ The Economist

Chinas s hare of votes will inc reas e to 381 s till

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: tes will inc reas e to 3.81%, s till far s hort of its weight in the world ec onom y. Meanwhile, old power patterns s till determ ine who holds the two top jobs : the www.economist.com/node/11664289 3/9 1/14/14 Who r uns the wor ld?: Wr estling for influence | The Economist bank is run by an Am eric an, the fund by a European. But a bigger problem for both organis ations is relevanc e. Until the late 1990s the IMF, m onitor of exc hange rates and lender of las t res ort to s truggling governm ents , had plenty of work. But em erging ec onom ies , onc e its c hief c lients and s ourc e of earnings in repaid interes t and loans , are thes e days often awas h with their own c as h. Earlier this year the IMF board voted to c ut s taff and s ell off about an eighth of its gold res erves (s om e 400 tonnes ) to m eet expec ted future funding s hortfalls . W ith no obvious role in c oping with the afterm ath of the rec ent banking and s toc km arket turbulenc e, its future role m ay be m ore as an expert ec onom ic advis er. Som e worry that the world m ay s till need a lender of las t res ort. Critic s think the fund's days s hould be num bered and its res erves put to better us e for developm ent. Still others m us e that what is needed is a W orld Inves tm ent Organis ation, to s et bas ic rules and better trac k the huge and c om plex flows of c as h that now was h around in hedge funds , s overeign wealth funds , banks and financ ial m arkets . The W orld Bank has a m ore c ertain future, but s till needs to retool. Com petition has s tiffened from private c apital m arkets . Many governm ents that onc e needed the bank's help for dam s , roads and other big projec ts are earning plenty from the s ale of raw m aterials . Even in Afric a, the readines s of China and India to s pend liberally without s trings in purs uit of oil and m inerals m eans that the Sudans and the Congos c an take the bank's c as h and ignore the c onditions attac hed. Yet the bank s till has a role lending to unfas hionable c aus es , or c ountries whic h donors neglec t. It c ould als o provide...
View Full Document

Ask a homework question - tutors are online