While the International Monetary Fund has historically been an organization used by wealthy countries to assert economic dominance over the rest of the world, developing nations won a small battle Saturday as the IMF moved to increase scrutiny over its rich members, including the United States.
The developing countries mostly blame the U.S. for imbalances in the global economy, with Washington’s policies fueling a weak dollar and hurting emerging market currencies. —JCL
Emerging powers won a battle on Saturday for heightened IMF scrutiny of rich countries’ economic policies as world financial leaders sought to defuse mounting tensions over currencies.
The International Monetary Fund’s 187 member countries gave voice to long-running frustrations of emerging economies, which say the Fund has traditionally not been tough enough on its biggest shareholders, led by the United States.
Now, with the United States and Europe in the doldrums, and emerging economies providing the major growth engine for the world, the tables appear to be turning.