Het Neoliberale Geloof 393

'Reform is needed. Reform is in the air. We can't afford to fail
The task is to build a new financial architecture. If we flunk it, the pain will strike most cruelly in the world's poorest countries

Joseph Stiglitz
The Guardian, Friday 27 March 2009

The financial crisis that began in America's sub-prime mortgage market has now become a global recession – with growth projected to be a negative 1.5%, the worst performance since the Great Depression. Even countries that had done everything right are seeing marked declines in growth rates, and even deep recessions. And much of the most acute pain will be felt by developing countries.

A UN commission of experts on reforms of the international monetary and financial system, which I chair, has just published its preliminary report. It focuses especially on the impact of the crisis on developing countries and the poor everywhere, which is likely to be severe. An estimated 30 million more people will be unemployed in 2009 compared to 2007. The increase could even reach 50 million. Progress in reducing poverty may be halted. The report warns that: "Some 200 million people, mostly in developing economies, could be pushed into poverty if rapid action is not taken to counter the impact of the crisis."

While this is a global crisis, responses are undertaken by national
governments, who quite naturally look after their own citizens' interest
first. Particularly invidious are protectionist measures, such as the US
"buy America" provision in its stimulus package. In fact, the World Bank
reports that 17 of the group of 20 countries have engaged in protectionist measures, after making a commitment not to do so in their meeting in Washington in November. By focusing on national, as opposed to global impacts, the global stimulus will be less – and the global recovery weakened.

While there is a consensus that all countries should undertake strong
fiscal stimulus measures, many developing countries do not have the
resources, and it calls for a concerted approach for additional funding,
both for spending and liquidity support for countries and corporations in
developing countries that are strained by the current credit crunch.
Developed countries should contribute 1% of stimulus spending; there should be an immediate issue of special drawing rights (SDRs), the "IMF money" that can be used especially to help those facing difficulties, and an expansion of regional efforts, such as the Chang Mai initiative in Asia.

It is important that any assistance be provided without the usual strings.
Conditions such as those which force developing countries to contract
spending and raise interest rates are counterproductive: the intent of the
assistance is to help them expand their economies, thereby assisting the
global recovery. Deficiencies in current institutional arrangements for
disbursing funds – for example, through the IMF – have long been noted, but the reforms so far are insufficient. Countries with funds are often reluctant to give money to institutions in which they have little voice, and which have advocated policies that they do not support; and countries are often reluctant to borrow, given the stigma associated with turning to these institutions. The commission urges the creation of a new credit facility, in which the voice of the new providers of finance and the borrowers are both better heard.'
Lees verder: http://www.guardian.co.uk/commentisfree/2009/mar/27/global-recession-reform