The World Bank and the IMF won't admit their policies are the problem

[Disir]

The people who run the global economy wanted the world to know that they understood what had caused the Brexit vote and given Donald Trump a shot at the White House. They talked a lot about the need for inclusive growth and a capitalism that worked for all. To those who have been left behind in the past three decades, they said: we get it, we feel your pain.

The recognition that there is a problem is progress. Lagarde means it when she says the growing gap between rich and poor is holding back the global economy. Kim genuinely wants to see the fruits of growth skewed towards the bottom 40% in every country. The World Bank, IMF and WTO can sense that they are sitting on the edge of a volcano that could blow at any time. They fear, rightly, that a second big crash within a decade would create a backlash leading to protectionism and the rise of dark political forces that would be difficult, if not impossible, to control.

...The next big one could come from anywhere and it is good that the World Bank and IMF are aware of the risks. Even so, there was an air of unreality about the discussions in Washington last week.

The reason was simple: there was not the slightest hint from the IMF or World Bank that the policies they advocated during the heyday of the so-called Washington consensus – austerity, privatisation and financial liberalisation – have contributed to weak and unequal growth, with all the political discontent that this has caused.

Even worse, Lagarde and Kim seemed oblivious to the fact that the Washington consensus approach is alive and well within their organisations. The IMF’s remedy for Greece and Portugal during the eurozone crisis has been straight out of the structural adjustment playbook: reduce public spending, cut salaries and benefits, insist that state-owned enterprises return to the private sector, reduce minimum wages and restrict collective bargaining. Between them, the IMF and the European authorities are turning Greece into a developing country. It would be fascinating to see what sort of response Lagarde would get if she tried talking about inclusive growth to homeless people huddled on the streets of Athens.
The World Bank and the IMF won't admit their policies are the problem

They have actually admitted their policies are the problem. They just have no intention of changing them.

 

[SassyIrishLass]

The next big one isn't that far off...the left thinks this economy is all peaches and cream, healthy....they couldn't be more wrong

 

[dfens]

The entire global economy is a ponzi scheme. We are at the point in time where we are just starting to run out of suckers, and the wealthy are trying to keep the game going.

 

[baileyn45]

The people who run the global economy wanted the world to know that they understood what had caused the Brexit vote and given Donald Trump a shot at the White House. They talked a lot about the need for inclusive growth and a capitalism that worked for all. To those who have been left behind in the past three decades, they said: we get it, we feel your pain.

The recognition that there is a problem is progress. Lagarde means it when she says the growing gap between rich and poor is holding back the global economy. Kim genuinely wants to see the fruits of growth skewed towards the bottom 40% in every country. The World Bank, IMF and WTO can sense that they are sitting on the edge of a volcano that could blow at any time. They fear, rightly, that a second big crash within a decade would create a backlash leading to protectionism and the rise of dark political forces that would be difficult, if not impossible, to control.

...The next big one could come from anywhere and it is good that the World Bank and IMF are aware of the risks. Even so, there was an air of unreality about the discussions in Washington last week.

The reason was simple: there was not the slightest hint from the IMF or World Bank that the policies they advocated during the heyday of the so-called Washington consensus – austerity, privatisation and financial liberalisation – have contributed to weak and unequal growth, with all the political discontent that this has caused.

Even worse, Lagarde and Kim seemed oblivious to the fact that the Washington consensus approach is alive and well within their organisations. The IMF’s remedy for Greece and Portugal during the eurozone crisis has been straight out of the structural adjustment playbook: reduce public spending, cut salaries and benefits, insist that state-owned enterprises return to the private sector, reduce minimum wages and restrict collective bargaining. Between them, the IMF and the European authorities are turning Greece into a developing country. It would be fascinating to see what sort of response Lagarde would get if she tried talking about inclusive growth to homeless people huddled on the streets of Athens.
The World Bank and the IMF won't admit their policies are the problem

They have actually admitted their policies are the problem. They just have no intention of changing them.

It always blows my mind that these people think they can sit in their ivory towers and understand what is happening in every corner of the world. The arrogance and mindlessness is astounding.

 

[EdwardBaiamonte]

the growing gap between rich and poor is holding back the global economy..

So then why not end liberal policies that cause inequality:

1) liberals destroyed the family creating millions of poor single Mom's unsuited for work and equality

2) liberal unions drove 30 million jobs off shore creating 30 million inequal

3) highest liberals corporate tax rate in world drove 20 million jobs off shore and created 20 million inequal

4) liberal deficits encourage China and Japan to buy our debt rather than our products with their dollars thus unemploying 5 million and creating 5 million more inequals

5) Obamacare prevents businesses from hiring and growing thus recessing 20% of our economy creating more inequals

6) Liberal union war on our schools has destroyed them rendering many of our kids unfit for work anad equality!!

7)) Liberal war on religion has left many Americans aimless and without drive or ambition to work and thus inequal.

8) Liberals support minimum wage making it illegal to hire many who then cant achieve equality

9) liberals invited in 20 million illegals to take our jobs thus making equality impossible for 20 million.​