Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Birdsall Tells Worried House Subcommittee Why U.S. Support to IMF Makes Sense

In testimony before the House Foreign Affairs Subcommittee on Terrorism, Nonproliferation and Trade last week, CGD president Nancy Birdsall argued that support for the G-20 commitments to increase lending resources at the IMF is a critical part of ensuring U.S. recovery from the economic crisis and global prosperity and security. She was, however, confronted with a host of concerns about whether multilateral lending would go to governments like Iran, Sudan, and Syria, and with one member of Congress’s view that he “is a citizen of the United States, not the world.”

G-20 And IMF Rhythms: The Problem Is Not the Direction but the Speed

If the commitments made last week by the heads of state at the G-20 meeting materialize quickly, this is good news indeed. The increase in available IMF and MDB resources for middle- and low-income countries, along with IMF’s announcement of a Flexible Credit Line which will allow countries to borrow amounts without pre-determined limits or conditionality, are crucial for helping these countries cope with the impact of the financial crisis.

Will the Financial Crisis Undermine Support for Market Capitalism in Russia?

As part of CGD’s efforts to track the impact of the financial crisis, I have been leading a series of conference calls to discuss how recent policy responses—or the lack thereof—may affect poor people in the developing world. Our latest call on the prospects for Russia suggests that the government could—and should—do more.

A Cautionary Note on AIG Bonus Clawback: Is the United States Turning into Argentina?

A friend who works in Wall Street was livid upon learning about the U.S. House of Representatives’ move to tax the controversial AIG bonuses at 90 percent. My friend—who is from Latin America and does not work at AIG—said that it looks like the United States is turning into Argentina. He was referring to last year when, in the midst of the commodity boom, the Argentine government attempted to raise the tax rate on the additional profits to around 90 percent and to increase its access to resources it nationalized the private pension plans.

G-20 Should Announce $1 Trillion to Help Developing Countries Cope with the Crisis

The accelerating downward spiral in the global economy has made me increasingly convinced that the G20 leaders gathering at the London Summit in early April should announce that they stand ready to provide up to $1 trillion to help developing countries to cope with the crisis over the next two years. This wouldn't be a handout, but an important part of a global stimulus package. It's in the rich world's own self-interest to anticipate the developing world's financing needs and to put in place the necessary resources. To do so is both a moral and a security imperative.

Pages

Tags