Re: IMF says globalization might be bad for the poor--and World Bank

World Bank AND IMF, doing their separate "studies" both agree: they are 
destroying economies and lives:

I have seen these posted together at:

World Bank and IMF studies are anti-corporate globalist!
http://www.indymedia.org/front.php3?article_id=301449&group=webcast

Pass around one handy weblink for both if you want. Nice image there of the 
World Bank as a Trojan Horse, shown as a float in a protest parade.



Regards,

Mark Whitaker


At 05:44 AM 3/19/2003 -0800, you wrote:
> A friend of mine sent me this message with the comment:
>
> "the wheel has been discovered!"
>
> PR
>
> >
> >
> > >IMF - no clear proof globalization helps the poor
> > >Reuters, 03.17.03, 6:15 PM ET
> > >
> > >By Anna Willard
> > >
> > >WASHINGTON, March 17 (Reuters) - The International
> > Monetary Fund sounded
> > >more like its critics on Monday when it admitted
> > there is little evidence
> > >globalization is helping poor countries.
> > >
> > >The IMF, which has often been the target of violent
> > anti-globalization
> > >protests, in a new study found economic integration
> > may actually increase
> > >the risk of financial crisis in the developing world.
> > >
> > >"Theoretical models" show that financial integration
> > can increase economic
> > >growth in developing countries, the research found,
> > but in practice it is
> > >difficult to prove this link.
> > >
> > >"In other words, if financial integration has a
> > positive effect on growth,
> > >there is as yet no clear and robust empirical proof
> > that the effect is
> > >quantitatively significant," the new report said.
> > >
> > >An overview of the study, which was put together by
> > four researchers
> > >including the fund's chief economist Kenneth Rogoff,
> > describes the
> > >conclusions as "sobering".
> > >
> > >The IMF often recommends that poor countries open
> > their economies to
> > >foreign investors and free-market policies. But
> > critics say those policies
> > >damage vulnerable economies, raising poverty rates
> > and destroying the
> > >environment.
> > >
> > >The fund's report found a small group of developing
> > countries have picked
> > >up the "lion's share" of capital flows as financial
> > links between
> > >countries have become more integrated. Nations with
> > good economic policies
> > >are more likely to reap the most benefits and steer
> > clear of financial crisis.
> > >
> > >HIGHER RISK OF CRISES
> > >
> > >International financial integration should also help
> > countries to reduce
> > >economic volatility, the study said, but in reality
> > this has not happened.
> > >
> > >"Indeed, the process of capital account
> > liberalization appears to have
> > >been accompanied in some cases by increased
> > vulnerability to crises," the
> > >report said.
> > >
> > >"Globalization has heightened these risks since
> > cross-country financial
> > >linkages amplify the effects of various shocks and
> > transmit them more
> > >quickly across national borders."
> > >
> > >In the last 10 years, developing countries from
> > Thailand and Russia to
> > >Argentina, have seen their economies collapse, even
> > though many of them
> > >were trying to follow IMF-prescribed open market
> > policies.
> > >
> > >CAUTION NEEDED
> > >
> > >The paper concludes that countries must carefully
> > balance integration in
> > >the world economy with strong economic policies and
> > the building of strong
> > >institutions, including banks and regulatory systems.
> > >
> > >"The evidence presented in this paper suggests that
> > financial integration
> > >should be approached cautiously, with good
> > institutions and macroeconomic
> > >frameworks viewed as important," the IMF said.
> > >
> > >But the report was unable to come up with a "clear
> > road map" for how this
> > >should be done. Such questions should be tackled on a
> > case-by-case basis,
> > >the IMF concluded.
> >
>
>
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