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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (328745)	10/26/2009 1:05:11 PM
From: Peter Dierks	1 Recommendation Respond to of 793955

Debtors to the Front A plan to cede U.S. influence at the IMF. OCTOBER 25, 2009, 6:54 P.M. ET. Banks around the world have been battered in the past year, but most have not responded by turning over control of their businesses to their borrowers. Yet this is what creditors at the International Monetary Fund moved closer to doing at the G-20 meeting in Pittsburgh last month. We understand why fund borrowers want more power, but why would creditor nations, especially Uncle Sam, cede it? The terms "debtor" and "creditor" may seem foreign to anyone who reads IMF press releases for the first time. The fund prefers the terms "emerging and developing markets" to describe countries that traditionally borrow hard currency, and "advanced countries" to describe those that provide it. But there's no getting around the reality that only a fraction of the IMF's 186 members are long-term creditors. That became clear earlier this year when the G-20 passed the hat to collect $500 billion for a lending facility known as "new arrangements to borrow." Major emerging countries led by Brazil quickly made clear they would only contribute if the fund issued short-term bonds that could be traded in the secondary market. In other words, no long-term commitments from them. Creditor countries have always enjoyed more voting power at the fund because without them there would be no reliable pool of money. But several years ago borrower nations, led by ... Message 26047239