Top Ten Reasons Why the IMF Shouldnt Take the Lead in Reform of Global Finance By Mark Weisbrot Co-Director of the Center for Economic and Policy Research (CEPR) Thursday, October 9, 2008 Slide 2 10. The IMF totally missed the two biggest asset bubbles in the history of the world. Slide 3 Home Prices Slide 4 Price-to-earnings ratio Slide 5 9. The IMF is unaccountable. Slide 6 8. Developing countries have no significant say in IMF decisions. Slide 7 Voting Structure of the IMF Slide 8 Slide 9 7. The IMF is at the head of a creditors cartel that has pressured developing countries to adopt harmful policies over the last three decades. Slide 10 6. The IMF made a mess in the last set of financial and economic crises: Argentina, East Asia, Russia Slide 11 Per Capita GDP in Asian Crisis Countries, (1997=100) Slide 12 Per Capita GDP in Argentina, 1990-2008 Slide 13 5. The IMF has shown no serious efforts at reform despite repeated failures. Slide 14 4. The IMFs economic projections can be way off target and may be politically influenced. Slide 15 IMF Projected GDP Growth for Argentina and Actual Growth Slide 16 3. The IMFs recommended economic policies have, in general, failed. Slide 17 Latin America's Unprecedented Long-Term Growth Collapse Western Hemisphere: Total growth in per capita real GDP (Purchasing Power Parity) Slide 18 Slowdown in Economic Growth Slide 19 2. The IMF has been a champion of the de-regulated global financial flows that played a huge role in the current mess. Slide 20 1.The IMF is run mostly by the Treasury Department. Slide 21 U.S. Treasury Secretary Paulson. Compensation at Goldman Sachs in 2006: $164 million.
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