Monday, March 18, 2002

Better Late Than . . . March 17, 2002 "President Bush's speech on Thursday announcing a $5 billion increase in foreign aid for poor countries is important — not only as a substantive breakthrough for this administration, but also, one hopes, as a psychological one." " . . . the president said our increased foreign aid must be conditioned on countries' improving their governance, rule of law, social safety nets, investment climates and anticorruption practices. We can't force elections, but we can use our aid to pressure developing countries to give their people more voice, more rule of law and a fairer slice of the pie, which are their people's real priorities. Here's a tip: The reason Islam seems like such an angry religion today is because so many Muslims are angry. The reason so many Muslims are angry is because most of them live under antidemocratic regimes backed by America, with lagging economies and shrinking opportunities for young people." " . . . Muslim countries made up 20 percent of the world's population, yet only 4 percent of the world's trade." " . . . Kyoto climate change treaty. . . . [ratification] would also send a hugely positive signal to the world — that America understands that if it's going to have lasting allies in a global war on terrorism, it has to be the best global citizen it can be. The attitude that we are entitled to consume 25 percent of the world's energy, while we're only 4 percent of the world's population, is obnoxious. Selfishness and hubris are a terrible combination." "Mr. Bush has repeatedly told the world: If you're not with us, you're against us. He needs to remember this: The rest of the world is saying the same thing to us." ... [more] "To the Editor: Thomas L. Friedman ('Better Late Than . . .,' column, March 17) finds it 'obnoxious' that Americans 'consume 25 percent of the world's energy, while we're only 4 percent of the world's population.' Americans produce 31.5 percent of the world's output — including food and pharmaceuticals exported to foreign countries. What's so obnoxious? DONALD J. BOUDREAUX Fairfax, Va., March 17, 2002 The writer is chairman of the department of economics, George Mason University." 3:34:29 PM  Google It!  comment  []

As Global Lenders Refocus, a Needy World Waits March 17, 2002 " . . . the World Bank and the International Monetary Fund . . . [were] Created 57 years ago to reduce poverty and to stabilize foreign currency markets . . . calls for reform and accountability at the World Bank, which has recently been accused of squandering billions on ineffective projects. The I.M.F. will also have much to answer for." "The decades-long debate over the role of the bank and the fund heated up in 1997 . . . Since Sept. 11, as rich nations have focused on resentment in the developing world, matters have grown more urgent. . . . Both now say they are improving their performance through internal reforms, even as they also grasp for new responsibilities. But the world's hunger for radical change — in terms of which countries receive aid, how much is made available and how it is distributed — could overtake their efforts." "The World Bank . . . in the past focused on building dams, paving roads or wiring electricity grids but now deal more with improving health and education. The I.M.F. sends teams of economists, with billions in loans, to rescue countries facing financial crises. . . . The I.M.F., meanwhile, has been under attack for its handling of the crisis in Argentina. Despite billions in aid and advice, the country defaulted on about $141 billion in public debt, froze private bank accounts and devalued the peso, instantly destroying the purchasing power of millions of families and resulting in mass unemployment, hunger and civil unrest. Economists say the situation shows just how little the fund understands economic fundamentals of many countries." "Like an emergency room doctor who gives every patient an appendectomy regardless of the symptoms, the institutions treated almost every developing nation the same — with a package often referred to as "structural adjustment." Usually, in return for aid, they imposed strict budgetary discipline, the ending of subsidies for food and other basics, increases in the cost of public services like health care and the elimination of trade barriers. With so many changes coming at once, depressed economies struggled to grow as imports flooded in and traditional industries collapsed. Sometimes, poverty worsened. . . . 'The signals came from outside the World Bank that things were not going all that well, that the structural adjustments policies were not delivering what everyone hoped' . . . " "CRITICISM of the bank and the fund peaked in 2000, when a commission organized by Congress and headed by Allan H. Meltzer, a professor of economics at Carnegie Mellon University, released a report calling for wholesale reform of both institutions, especially the World Bank."  ... [more] 3:21:49 PM  Google It!  comment  []

[Democracy's Flaw] "Meanwhile, my good friends the French are proceeding to prove that when a democracy reaches the point where more voters are receiving benefits from the government than are paying taxes, that they will then proceed to vote for ever rising benefits and will destroy their own economies through out-of-control social spending. Living on memories of past glory, they are like old men sitting in a tavern, grumbling into their cups about how they used to be big and strong and virile, remembering how important they were when they were younger. And they are doing their best now to try to make the rest of Europe the same way, and there's a good chance they will succeed and will convert the entire economic block into a declining has-been. What used to be a lot of small nations who could make their own decisions and maybe do well on their own will become a single confederation caught in political and bureaucratic gridlock. Europe is probably fucked, too." ... [more] 2:36:17 PM  Google It!  comment  []

Ousted Japan Politician Lashes Out "Makiko Tanaka, the popular politician who was fired as Japan's first female foreign minister, delivered a scathing attack . . . "  ... [more] 8:36:20 AM  Google It!  comment  []

Yen Takes Biggest Fall in Six Months March 18, 2002 "Japan's currency shed two yen against the dollar on Monday, its biggest one-day drop in almost six months, as a slide in Tokyo stocks fueled concern that recent capital flows into Japan have started reversing."  ... [more] 8:29:01 AM  Google It!  comment  []