“As a result of the downturn, developed countries are not expected to help 28 countries facing twin shocks of rising food and fuel prices, Zoellick said. “For the poor, the costs of the crisis could be lifelong,” he said.”
Thanks, Mr. Zoellick.
First, developed countries will have to think twice about lecturing any other country on transparency, legality, freedom or democracy. Their moral position is bankrupt, not just their banks.
Second, leaving the poorest people to fend for themselves seems to be in line with one strain of US government policy since WW II – which sees third world populations as a dire threat to world resources.
Third, Mr. Zoellick, do us a favor and leave the world alone. Stop managing world trade in your favor, creating crises, and then “helping”….
Update:
AFP has this update on Zoellick’s remarks, which seems to suggest that aid to third-world countries will be maintained. Aid doesn’t seem to have done India much good. Still, in a crisis caused by foreign governments, it might be necessary, although how is the question.
“Zoellick significantly told the news conference that the International Finance Corp, the private sector lending arm of the IMF, was exploring the possibility of a fund to help recapitalize banks in the developing world.With donor aid programs under pressure due to the financial crisis, the World Bank estimates that up to 100 hundred million people are at risk of falling into poverty because of higher food and energy prices.
“The large surge in food and energy prices — and an associated rise in inflation — present major policy challenges for most countries, further compounded by the uncertain global conditions as the financial crisis unfolds,” an update for the Development Committee said.
For his part, Zoellick stressed that “aid flows must be maintained,” adding that “today’s meeting of ministers was unanimous in that regard.”
Comment:
The private sector lending arm of the IMF…..again, those unnatural and dangerous public-private partnerships. What’s to stop a private investor lending on outrageous terms to foreign central banks? Do developing countries have the resources to monitor the kinds of financial instruments used?
I find some relevance to my most recent article on today’s exit of free markets to a sovereign social welfare state as dictated through Adam Smith’s “Wealth of Nations”.
You can read my whole article at http://bdgroupllc.blogspot.com
Smith believed that while human motives were often driven by selfishness and greed, the competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and argued against the formation of monopolies. It seems that his fears have shown their relevance and we are in this global dilemma.
We have become a national welfare state for the rich with these bailouts. I want my voting rights to the new United States of America corporation of AIG, Feddie, and the banks that are being rescued. This social welfare state for the rich, or commonly called Reaganomics does not work! When will we learn…?