Top Ten Reasons Why the IMF Shouldn

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• Top Ten Reasons Why the IMF Shouldnt Take the
  Lead in Reform of Global Finance

By Mark Weisbrot Co-Director of the Center for
Economic and Policy Research (CEPR) Thursday,
October 9, 2008
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• 10. The IMF totally missed the two biggest asset
  bubbles in the history of the world.

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Home Prices
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Price-to-earnings ratio
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9. The IMF is unaccountable.
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• 8. Developing countries have no significant say
  in IMF decisions.

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Voting Structure of the IMF
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Voting Structure of the IMF
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• 7. The IMF is at the head of a creditors cartel
  that has pressured developing countries to adopt
  harmful policies over the last three decades.

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• 6. The IMF made a mess in the last set of
  financial and economic crises Argentina, East
  Asia, Russia

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Per Capita GDP in Asian Crisis Countries,
(1997100)
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Per Capita GDP in Argentina, 1990-2008
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• 5. The IMF has shown no serious efforts at reform
  despite repeated failures.

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• 4. The IMFs economic projections can be way off
  target and may be politically influenced.

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IMF Projected GDP Growth for Argentina and Actual
Growth
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• 3. The IMFs recommended economic policies have,
  in general, failed.

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Latin America's Unprecedented Long-Term Growth
Collapse
Western Hemisphere Total growth in per capita
real GDP (Purchasing Power Parity)
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Slowdown in Economic Growth
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• 2. The IMF has been a champion of the
• de-regulated global financial flows that played a
  huge role in the current mess.

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• 1.The IMF is run mostly by the Treasury
  Department.

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• U.S. Treasury Secretary Paulson. Compensation
  at Goldman Sachs in 2006 164 million.