By Simon Johnson, about how the world is starving the IMF of resources just when they're needed most. Scathing, even bitter commentary on the stupidity and mendacity of our 'leaders' in crisis. Here's an excerpt. His entire screed will be in the New Republic online. (Emphases mine)
Yes, European leaders and the Bush Administration pushed hard for the IMF to cut back on skilled and experienced staff just as the global crisis broke - and as the IMF was emphasizing, politely in public and pointedly in private, that this was a major crisis likely affecting all countries. In fact, given that this emphasis was not welcome by governments, this apparently hardened the resolve of key players to push through senseless, unnecessary, and irresponsible cuts.
Egregious stupidity and borderline malpractice goes unnoticed in the international economic diplomacy space, or at least not picked up on by leading news sources or in the general public discussion. Why? To some (the media), it doesn’t quite meet the threshold for newsworthy - it’s a little too far from the interests of readers and a bit too hard to explain in a news program; nobody cares as much about international issues as they do about domestic bailout scandals - for which there is a much higher tolerance for compelling details. To others (much of the public), it seems too technical and surely something best left to experts. And - remarkably and mistakenly - those who follow the IMF closely (e.g., in the development community) think that this downsizing somehow fits with what they have been trying to achieve; they were completely snowed.
European policy towards the IMF is a masterpiece of misdirection and disinformation. The proportions and audacity should take your breath away. And of course the same principle applies to government officials dealing with international economic policy as it does to CEOs of failing banks: never admit responsibility and definitely never suggest there was the slightest mistake in the past (because that might actually be newsworthy to the mainstream or, even more scary, draw Jon Stewart’s attention).
Rearranging the deck chairs on the Titanic looks productive by comparison. The actions of the G7 with regard to the IMF in 2008 - and the attitudes of the Europeans still today - are more like burning lifeboats and throwing skilled pilots overboard. In this context, what are the odds that the upcoming G20 heads of government summit on April 2nd will truly be productive?
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