Posts tagged ‘IMF’

The IMF Succession

By , 20 May, 2011, No Comment

I’ve got a post up at Foreign Exchange arguing for a non-EU replacement for DSK:

If one grants the premise of the European argument (that the IMF should be controlled by the people who need it most), one has to grant that the people who need it most aren’t European, and will be less so as time goes on. Indeed, the best way to address the controversy surrounding and resentment toward the IMF in many parts of the developing world, rather than making crass jokes, is to remind people that its primary function is – and has always been – to fight poverty, and to push for a developing world candidate on the grounds that it should be more accountable to those it serves.

More, including my own favorite candidate, here.

More on Ireland

By , 30 November, 2010, No Comment

Another quickie Ireland at Foreign Exchange today, this time looking at the politics of the deal with an Irish TD:

Going into the conversation, I was under the impression that Ireland might hope to renegotiate at a lower interest rate after the crisis has stabilized somewhat. Deputy Fleming was determined to disabuse me of this assumption.

Over time, he says, “people will begin to see that the interest rate is not so bad. If the financial situation stabilizes, by year 3 [of the loan period], it may be possible to be raising funds in the bond markets again at a rate that is lower than the rate on offer [in the EU settlement], and we may not have to draw it all down at that rate.” In other words, there’s no plan to renegotiate a better deal in Brussels, but there is a plan to aggressively hack at the deficit domestically, and then leverage the Brussels offer to renegotiate with the bond markets.

For more such optimistic predictions, read the whole thing.

Gordon’s Day

By , 2 April, 2009, 2 Comments

Gotta hand it to Gordon today. Somehow, he’s pulled world leaders back from their insanity to agree to principles for that were, only a day ago, the butt of jokes among policy wonks. A triumph.

In the past week, much of the American media has referred to the IMF infusion in particular as though it were proposed by President Obama in the lead-up to this meeting. That’s wrong.

As readers of this blog will know, the whole combination of trade, aid, and regulation was the brainchild of Gordon Brown and the subject of his speech in Congress some weeks ago. At the time, the American media focused on his praise of the United States and on the symbolism of the moment, so American readers never processed the weight of his policy prescriptions.

Meanwhile, the Obama administration, realizing that a dramatic expansion of fiscal stimulus was not in the cards, began talking up the IMF infusion as though it were their plan, and journalists in the US political press have followed suit. World leaders were smart enough to let Gordon announce the comminque himself (he did superbly; video below), but the talking heads in the American press still spent the evening news discussing whether this as an achievement of the Obama team.

Obama and his celebrity charm get some credit for helping curmudgeonly Gordon get this done; surely Obama had some role in stopping Nicholas Sarkozy from throwing another tantrum. But the policies–using the IMF as a form of trade subsidization and trade as a form of development aid–don’t bear any signs of his input. That my colleagues in the political media insist on declaring otherwise only facilitates conservative critiques that they are in Obama’s tank.

Moreover, I find this strategy of taking credit for others’ ideas unnerving. There were two stories buried in the inside section of the NYT these past weeks about a Congressional effort–led by Ted Kennedy–to devise a health care bill, even before the administration has a Health Secretary. The emerging plan sounds a lot more like Hillary Clinton’s proposal from last spring than the Obama plan, but if it looks liable to get Congressional passage, you can bet it will get Obama branding.

Come on, Mr. President. Your popularity ratings are sky-high, where Gordon Brown is fighting for his political life. You are young with years ahead of you, where Ted Kennedy is singing his swan song. Take a back seat, for once, and give credit where it’s due.

I have drunk the Pimms

By , 6 March, 2009, 5 Comments

Larry Smith, one of my favorite political bloggers, has held my interest this year because he’s a liberal who has refused to drink the Obama Kool-Aid, and as a Brit, has risen above ideology by being able to critique his own Labour Party. But he has a ghastly post this week detailing all the reasons he’s ga-ga over President Obama’s first month in office, for which I took him to task in his comments section.

To be honest, I’m not in a great place to point fingers. Because while I am still pretty irked by President Obama, I have gone ga-ga for Gordon Brown. It’s been coming on for some time–for a while I was able to separate my admiration for his intelligence and his principles from his lack of political savvy and charisma. That division shattered when he addressed Congress on Wednesday–it was a personal, eloquent and yet forceful policy address the likes of which, as the British papers were quick to point out, Brown has never made in Westminister.

So in part, I just swooned to see Brown succeed on both political and policy fronts. But I was also bowled over by the content of his argument:

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