The World Bank and IMF are in Crisis: It’s Time to Push a Radical New Vision
The article by David Adler and Yanis Varoufakis was published to indicate the necessity for changes at the mission of the World Bank and the IMF. The publication came at the time when Jim Yong had stepped down as the president of the World Bank three and a half years before completion of his contract. Both the World Bank and the International Monetary Fund (IMF) are the two remaining institutions of the Bretton Woods System that had been established in 1944 after an agreement among the United States, Canada, Western European countries, Japan, and Australia. The system that relied heavily on a fixed exchange rate regime had led to the effectiveness of the capitalist system in the 1950s and 1960s. The system led global finance along ‘Atlanticist’ lines whereby the European countries chose the managing director of the IMF while the U.S. selected the head of the World Bank. The exit of Jim Yong presents the organizations an opportunity to establish a new vision.
David Adler and Yanis Varoufakis argue that it is time that the two institutions reconsider the proposition by John Maynard Keynes to establish a multilateral International Clearing Union (ICU). The system would help countries keep their currencies and central banks. Besides, countries would agree to denominate all international transactions in a conventional accounting unit that Keynes suggested to be gold. Afterward, the IMF would tax persistent surpluses and deficits to maintain a balance of capital flows among countries (Smallman and Brown 19). The suggested reformation of the World Bank and the IMF would adopt global approach financial issues rather than rely on a few countries for skewed solutions.
The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.
The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.The concepts of global financial management highlighted in the article are synonymous with the concepts learned in the classroom. People have been in constant search for a better world. The advent of globalization has helped countries achieve significant milestones. The management of the financial system must include all countries across the globe.