In any middle school civics class you’ll learn that the system of checks and balances is a central tenet of the U.S. Constitution. Over the last 100 years, however, it appears the government has been operating under different assumptions, particularly where trade policy is concerned.
Starting my first year in office, I will convene annual meetings with Mr. Calderón and the prime minister of Canada. Unlike similar summits under President Bush, these will be conducted with a level of transparency that represents the close ties among our three countries. We will seek the active and open involvement of citizens, labor, the private sector and non-governmental organizations in setting the agenda and making progress.
The Group of Eight (G8) has frequently come under attack for being an archaic institution that doesn’t represent the current configuration of global political and economic influence. These criticisms have intensified with the rise of the Group of 20 (G20) financial summit as the major vehicle for responding to the global financial crisis.
As El Salvador transitions from decades of conservative rule to the administration of leftist President Mauricio Funes, the country faces an international showdown triggered by a restrictive free-trade agreement between the United States and Central America. Canada’s Pacific Rim Mining Corporation is suing the government for its refusal to allow it to mine gold in El Salvador’s rural north. If Pacific Rim succeeds in securing the $100 million settlement it seeks, that would set a troubling precedent. At stake is a question that affects all nations: Can private interests trump national sovereignty under international law?
The conventional view of Robert McNamara, who passed away a few days ago, is that after serving as the chief engineer of the disastrous U.S. war in Vietnam, he went on in 1968, to serve as president of the World Bank. In this way, he sought to salve his troubled conscience by delivering development assistance to poor countries.
One of the most significant consequences of the collapse of neoliberal economics, with its worship of the "self-regulating market," has been the revival of the great English economist John Maynard Keynes.
Not only do his writings make Keynes very contemporary. There is also the mood that permeates them, which evokes the loss of faith in the old and the yearning for something that is yet to be born. Aside from their prescience, his reflections on the condition of Europe after World War I resonate with our current mix of disillusion and hope:
The recent clash between indigenous peoples and Peruvian national police sends a powerful message from the Amazon jungle straight to Washington: The enormous social, political, and environmental costs of the free-trade model are no longer acceptable.
Last year, as the financial crisis reached global and historic proportions, many commentators identified one institution as the debacle’s great winner: the International Monetary Fund. Just two years ago, the IMF seemed to be on an inexorable downward path: its credibility and effectiveness in question, its portfolio of borrowers severely reduced, its legitimacy and governance structure under challenge, and its own finances in disarray. In fact, the Fund had started “downsizing” its staff as the only way to avoid running one of the deficits that it so strongly advises client countries to steer away from.
The global financial crisis has discredited the financial institutions that played a part in causing it. Discussions of radical alternatives are beginning to flourish, with the world’s governments rushing to consult experts who previously found themselves out in the cold.
The International Development Association (IDA), the arm of the World Bank that makes grants and interest-free, long-term loans to poor countries around the world, lacks effective safeguards against corruption, according to a report by the Bank’s own Independent Evaluation Group (IEG). The report concluded that IDA, which currently lends and grants about $10 billion annually to governments in Africa, Asia, Latin America, and Eastern Europe, doesn’t protect its funds adequately from theft and diversion.