Frankly, I'm very skeptical about the ability of the IMF or foreign aid in general to bring prosperity to economically troubled nations. They act as if they have this down to a science, but have few success stories. Countries tend to become dependent on IMF bailouts and foreign aid, and less competitive economically. I think a laissez-faire economic policy and free trade is the best solution. I can understand aid that is earmarked to rebuild infrastructure, but beyond that aid tends to disrupt the natural economy. See Von Mises on this. Economic Agenda
IMF haze obscures Iraq's horizon
The message being trumpeted by ministers from the Group of Seven leading industrial nations, the International Monetary Fund and the World Bank was all about a new �spirit of cooperation�.
But, in truth, only a last-minute deal to paper over the deep divisions between the key players prevented these Washington talks, under the umbrella of the IMF spring meetings, deteriorating into another disastrous breakdown in international co-operation. The global diplomatic tensions that have undercut the credibility of the United Nations came dangerously close to severely poisoning world economic relations � and to consigning the IMF and the World Bank to the same fate as a hapless and hamstrung UN.
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Despite the huge resource advantages that oil has offered the Gulf states, the opportunities and potential offered by this wealth have often been squandered. As George Abed, of the IMF�s Middle Eastern department, details in a recent analysis, growth across much of the Middle East has faltered over the past two decades as the rest of the developing world has enjoyed a relatively robust expansion.
Ironically, the non-oil economies of the region have actually done better. Across the Middle East and North Africa as a whole, real GDP growth has averaged only 3.5 per cent over the past three decades � substantially less than the 5 per cent average for all developing countries.
As Abed explains, this poor performance has flowed from a near-vacuum over economic and political reform, widespread corruption, a failure by the Middle Eastern states to take advantage of globalisation, under-developed financial markets, and trade restrictiveness. A crucial factor has been the growth of unwieldy public sectors as oil wealth has fuelled a relentless expansion of government activities by authoritarian regimes, crowding out private sector development. The consequences of all this have been baleful for the people of the region and disastrous for global stability.
Iraq offers to chance to create an alternative model � one to which the people of other Middle Eastern countries could aspire. A successful and wisely led reconstruction drive could not only dispel many of the deep-seated suspicions over America�s motives in Iraq, but create a beacon for the region and a bulwark against fundamentalism. For this to happen, though, there must first be vision and leadership from the US, and goodwill and commitment from Europe. It is a challenge to which both must quickly rise.
IMF haze obscures Iraq's horizon
The message being trumpeted by ministers from the Group of Seven leading industrial nations, the International Monetary Fund and the World Bank was all about a new �spirit of cooperation�.
But, in truth, only a last-minute deal to paper over the deep divisions between the key players prevented these Washington talks, under the umbrella of the IMF spring meetings, deteriorating into another disastrous breakdown in international co-operation. The global diplomatic tensions that have undercut the credibility of the United Nations came dangerously close to severely poisoning world economic relations � and to consigning the IMF and the World Bank to the same fate as a hapless and hamstrung UN.
>>
Despite the huge resource advantages that oil has offered the Gulf states, the opportunities and potential offered by this wealth have often been squandered. As George Abed, of the IMF�s Middle Eastern department, details in a recent analysis, growth across much of the Middle East has faltered over the past two decades as the rest of the developing world has enjoyed a relatively robust expansion.
Ironically, the non-oil economies of the region have actually done better. Across the Middle East and North Africa as a whole, real GDP growth has averaged only 3.5 per cent over the past three decades � substantially less than the 5 per cent average for all developing countries.
As Abed explains, this poor performance has flowed from a near-vacuum over economic and political reform, widespread corruption, a failure by the Middle Eastern states to take advantage of globalisation, under-developed financial markets, and trade restrictiveness. A crucial factor has been the growth of unwieldy public sectors as oil wealth has fuelled a relentless expansion of government activities by authoritarian regimes, crowding out private sector development. The consequences of all this have been baleful for the people of the region and disastrous for global stability.
Iraq offers to chance to create an alternative model � one to which the people of other Middle Eastern countries could aspire. A successful and wisely led reconstruction drive could not only dispel many of the deep-seated suspicions over America�s motives in Iraq, but create a beacon for the region and a bulwark against fundamentalism. For this to happen, though, there must first be vision and leadership from the US, and goodwill and commitment from Europe. It is a challenge to which both must quickly rise.
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