imf admits it lacks proof
Nathan Newman points to a rather startling revelation by the International Monetary Fund:
WASHINGTON, March 17 (Reuters) - The International Monetary Fund sounded more like its critics on Monday when it admitted there is little evidence globalization is helping poor countries.
The IMF, which has often been the target of violent anti-globalization protests, in a new study found economic integration may actually increase the risk of financial crisis in the developing world.
"Theoretical models" show that financial integration can increase economic growth in developing countries, the research found, but in practice it is difficult to prove this link.
"In other words, if financial integration has a positive effect on growth, there is as yet no clear and robust empirical proof that the effect is quantitatively significant," the new report said.
An overview of the study, which was put together by four researchers including the fund's chief economist Kenneth Rogoff, describes the conclusions as "sobering".
The IMF often recommends that poor countries open their economies to foreign investors and free-market policies. But critics say those policies damage vulnerable economies, raising poverty rates and destroying the environment.
Nathan comments:
Understand how serious this admission is-- IMF policies have systematically impoverished poor people globally, all in the name of "helping" them, only to admit that those policies probably not only did little to help them on the basic job of the IMF-- avoiding financial crises-- but may have made things worse.
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