An article in today’s ‘Independent’, “Obama hails the new world order”, could be perceived of as giving something of an answer to the question I asked in yesterday’s post, “have the Chinese managed to increase their influence in the World Bank and IMF? The ‘Independent’ writes, “China is playing a notably bigger role, pledging $40bn for the improvement in the IMF’s resourcing. Most of the rest comes from the US and Europe. China has publicly called for an increased role for the IMF’s own “world currency”, the SDR. A long-awaited reform of the governance of the IMF should deliver China more votes and influence.”(2) Yes, and if we view the “should” as an exercise in academic caution, I will go along with that. However, the fact is China will have no significant influence in either body or do you think that anyone other than a European is going to be the President of the IMF and anyone other than an American is going to be President of the World Bank?
No, the Anglo-Saxons and their European chums it appears have been very clever, or have the Japanese, Indians, Chinese, Russians, Brazilians etc just been downright stupid? There they all are pumping money into the very two pillars that prop up the West’s financial dominance of the planet and now we hear the British saying, ” the real significance of yesterday’s agreement was not the $1trn package but the enhanced role it gave to world institutions like the IMF, whose budget will triple to $750bn. “A new world financial order has been born, almost by accident, because of this crisis,” one cabinet minister said. “These bodies have been revamped; now they need to raise their game.”(3) A game that the Anglo-Saxons know all too well how to play. For the rest of the planet it will be a case of contenting themselves with the old adage, “in for a penny, in for a pound.” As far as the game is concerned it is not difficult to deduce who the winners will be.
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