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Bretton Woods Conference in 1944
Picture Credit: United NationsGlobal Governance and the Three Sisters
The World Bank, the International Monetary Fund, and the World Trade Organization wield tremendous power and influence, but exclude the voices of developing countries most adversely affected by financial and trade policies. Money rules at the World Bank and the IMF, and "consensus" at the WTO is often the product of behind-the-scenes "greenroom" bargaining and pressure from trade heavyweights such as the United States. These articles address the need for democratization, accessibility, accountability and transparency at all three institutions.
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Articles and Documents
2008 |2007 | 2006 | 2005 | Archived Articles
What Are We For? (September 6, 2001)
Globalization has led to increased poverty, injustice, subordination, anti-solidarity and ecological disasters. New institutions are needed to replace the IMF, the World Bank, and the WTO as they serve strictly the interests of the elite. (ZNet)
A speech by James Paul, Executive Director of GPF, reviewing the changing relationship between the U.N. and the Bretton Woods Institutions and calling for new ways of making those institutions more responsive to democratic processes.
Global Exchange gives suggestions on how to involve citizens in the shaping of a more democratic global economy. In order to reform global trade rules, make corporations more accountable, and to promote environmentally and fair alternatives.2008
Towards a New Global Economic Compact (October 30, 2008)
After the Asian financial crisis at the end of the 1990s, many people called for reform of the global financial architecture. But the international financial institutions resisted comprehensive reform and they continued to exclude the poorer countries from decision making. The head of the UN High Level Task Force on the global financial crisis, Joseph Stiglitz, argues that the UN is the only institution that has broad legitimacy and that it should take a lead role in reforming and monitoring the global financial system. (World Economy & Development In Brief)Statement on the Proposed “Global Summit” to Reform the International Financial System (October 29, 2008)
Over 550 organizations from 88 countries call the G20 summit on the financial crisis “a New Undemocratic Washington Consensus.” Although rich countries are responsible for the financial collapse, the crisis strongly affects the poorest countries. Therefore, all governments must be involved in developing global solutions for the benefit of the majority of the world’s people. (Eurostep)Clear-Out Time for IMF, World Bank (October 28, 2008)
In the past decades, the World Bank and the International Monetary Fund have gradually turned into more political institutions dealing with issues such as democracy, corruption and “good governance.” This article states that the Bretton Woods institutions should return to their original mandate, which is to finance economic development and work for international monetary stability. (Asia Times)A Crisis-Opportunity Moment (October 23, 2008)
On November 15, 2008, leaders of the world’s 20 largest industrial and emerging economies will meet to discuss responses to the financial crisis. This article urges the political elite to not focus solely on the financial market, but also address the problems of the majority of world’s population. For instance, governments should address the rising inequality of people living in cities, as the greater part of the world population now live in urban areas. (openDemocracy)Who Should Control the Bank? (September 29, 2008)
World leader’s proposal to reform the World Bank includes only small changes in the voting system and prevents major change in the Bank’s governance structure. An alliance of developing countries and over 80 NGOs propose a reform of the World Bank based on the principle of "parity," which means equal voting share for borrower and non-borrower countries. (Bretton Woods Project)A World in Flux: Crisis to Agency (October 16, 2008)
The financial crisis provides a rare opportunity for world leaders to reform the structures of global governance. This article suggests that a global summit should launch a reform of the financial system. Governments should in future regulate financial companies and control currency speculation through a tax on all currency transactions across borders. A new financial system must also reduce income inequalities. Today, 20 percent of the world’s population receives over 80 percent of the world’s income. (OpenDemocracy)Global Financial Crisis: Does the World Need a New Banking 'Policeman’? (October 8, 2008)
This article argues that neither the World Bank, nor the International Monetary Fund nor the World Trade Organization have the power to solve the global financial crisis. In order to adapt to the economic situation of the 21st century, the Bretton Woods system, founded in 1944, needs to be reformed. A new way of economic governance must be based on regulation and restrained rules to manage the risks of banks and financial institutions. )Reforming IMF and World Bank (July 16, 2008)
NGOs and some governments call on the IMF and World Bank to reform the conditions attached to their development aid. Instead of macroeconomic conditions, the European Commission advocates the use of outcome indicators that monitor the impact of development aid in poor countries. Governments will discuss the role of conditionality at the September 2008 High Level Forum on Aid Effectiveness in Ghana. However, NGOs are skeptical of achieving any real breakthroughs because of the lack of response from the World Bank and IMF. (World Economy and Development in Brief)Manufacturing a Food Crisis (June 2, 2008)
The 2008 global food crisis demonstrates the destructiveness of the “one-two punch of IMF-imposed adjustment and WTO-imposed trade liberalization.” These policies have steadily marginalized farmers, and transformed self-sufficient agricultural economies into vulnerable, import-dependent ones. Large industrial farms and grain-trading corporations control the global food market. However, poor countries increasingly defy World Bank, IMF and WTO policies – with fruitful results – and farmer’s movements such as the Via Campesina are gaining in influence. (The Nation)Redesigning Global Economic Governance (May 6, 2008)
The international system of economic governance - comprised of the World Bank, the World Trade Organization, and the International Monetary Fund - lacks an institution that integrates their global policies. At the Financing for Development (FfD) conference in Doha in November 2008, governments will discuss reforms of this international system. This Policy Innovations article endorses the proposal for an “integrated multi-stakeholder forum” on FfD, where world leaders, NGOs, UN members, and private sector representatives can continue to discuss reforms after the Doha summit.A Man-Made Famine (April 15, 2008)
This article is highly critical of World Bank president Robert Zoellick’s calls for further trade liberalization as a response to the global food crisis. According to the author, trade liberalization is not the solution but the cause of the food crisis. The 2007-2008 food price rises have had such a severe effect on the world’s poor because of the trade liberalization the World Bank, World Trade Organization and the International Monetary Fund propagate. These policies limit social safety nets and public sector agricultural support, push small-scale farmers out of the market, and lead to the sale of grain stockpiles to service foreign debt. Consequently, there is no “buffer between price shocks and the bellies of the poorest people on earth.” (Guardian)2007
A Bank of Their Own: Latin America Casting off Washington’s Shackles (October 31, 2007)
Poor countries find it almost impossible to gain influence and initiate change at the World Bank and IMF. In response to this, many countries are engaging in regional economic cooperation instead. On December 5, 2007, Latin American countries will launch their own development bank, Bank of the South, which will provide loans to member countries. This will make the Latin American countries increasingly independent of the US and Europe. (AlterNet)Wolfowitz Saga Exposes Structural Flaws of the World Bank (May 15, 2007)
This YaleGlobal piece argues that the allegations of nepotism against World Bank President Paul Wolfowitz have exposed the underlying issue of “an outdated system of global governance” which grants disproportionate power to wealthy western nations. The US monopoly over leadership of the World Bank has muted criticism against Wolfowitz, as small countries dependent on the bank fear retaliation if they object, Europe looks to maintain control over the leadership of the IMF, and larger developing countries “seek quiet exit from the bank’s grip.”US and EU “Need to Cede Power” in World Bank and IMF (April 21, 2007)
This MercoPress article argues that the US and EU must “recognize the shift of economic power” toward Asia and Latin America or risk “forfeiting world economic leadership.” The author warns that emerging economies will become increasingly frustrated with the US and European dominance over the World Bank and IMF and may create regional rivals. However, the article does not fully address the need for greater inclusion of poor countries into the power structures of the two institutions, a key issue for reform.Two Economic Giants, How Many Votes? (April 3, 2007)
Although the US currently dominates the World Bank, the International Monetary Fund, and the World Trade Organization, the rapid expansion of the Chinese economy may soon threaten US economic hegemony. China’s increasing voting shares in all three institutions could allow it to shift the global balance of power and “drive international economic policy the way no nation has before.” (International Herald Tribune)A Civil Society Response to the Report of the UN High-Level Panel on System-Wide Coherence (April 2007)
A coalition of NGOs in this report expresses concern that UN “system-wide coherence” could further harm the world’s poor and under-represented communities. The report also warns against reform proposals that target the UN but overlook other players engaged in development work, particularly the Bretton Woods Institutions. (Center of Concern, International Trade Union Confederation, UBUNTU and World Federalist Movement)2006
World Bank and IMF Still Pushing Conditions (November 30, 2006)
This Eurodad article reports from the Oslo ‘Conference on Conditionality’ that gathered about 100 European government officials, NGO representatives and academics. The conference was organized and hosted by the Norwegian government, whose policy platform declaration states that Norwegian aid shall not support programs conditional upon liberalization and privatization. The “lively debate” revolved around the question of whether the World Bank and the International Monetary Fund have actually improved and reduced their use of conditions when granting or lending money to poor countries, or, as several conference presenters showed, only language has in fact changed.Kicking the Habit (November 2006)
This Oxfam report details the history and damaging consequences of the World Bank and IMF (International Monetary Fund) praxis of pushing privatization and liberalization reforms in poor countries, as well as the continuous failure to reform this ‘conditionality.’ The report looks closer at the case of Mali, where the World Bank has forced liberalization of the cotton industry by withholding funds desperately needed in the country’s neglected education sector. The resulting exposure to the world market cotton price – significantly driven down by rich countries’ subsidies – decreased the price Malian farmers received for their cotton by 20 percent in 2005. This could increase country-wide poverty by 4.6 percent, says the report.WTO, IMF Must Consider the Poor (October 3, 2006)
Ahead of the International Day of Poverty Eradication, several NGOs convened in Victoria Falls, Zimbabwe, to discuss how to raise awareness about the plight of the world’s poorest people. In the fight against global economic and social injustices, critics of globalization at the meeting called for “greater accountability and the adoption of pro-poor policies” by the Bretton Woods Institutions. The neoliberal policies that the International Monetary Fund, World Bank and World Trade Organization impose on poor countries tend to increase their debt burden, and widen the global inequality gap rather than improve the situation of the world’s poor. (Herald)Time for the IMF/World Bank to Listen to Workers (September 18, 2006)
Critics of globalization often condemn IMF and World Bank policies that push for privatization and labor market deregulation in poor countries. The International Confederation for Free Trade Unions (ICFTU) advises the institutions to focus less on such harmful economic policies and more on improving working conditions. Furthermore, the ICFTU urges the IMF and World Bank to demonstrate a genuine commitment to the participation of NGOs and trade unions.IMF, World Bank Face Growing Pressure for Reforms (September 13, 2006)
The IMF director’s long-term reform agenda goes beyond the increase in four countries’ voting shares proposed for agreement on the September 2006 annual meetings of the Bretton Woods Institutions. Still, two economists from the Brookings Institution find that countries must strike a much more ambitious “grand bargain” that can break “the logjam in global governance reform which has been building for decades.” If this does not happen, it “will likely mean a progressive weakening of the current global institutions, including the IMF, the World Bank and WTO (World Trade Organisation).” (Inter Press Service)Can We Reform the International Finance Institutions? (August 18, 2006)
Ahead of the September 2006 meetings of the Bretton Woods Institutions (BWIs), this piece from CIVICUS encourages people to join the global mobilization for demanding profound reform of the International Monetary Fund (IMF) and the World Bank. With the IMF suffering from a legitimacy and budget crisis “unparalleled in its 62 years of existence,” few question that its current operation must change. The author calls for the BWIs to stop imposing policy conditions that work against the Millennium Development Goals, to start prioritizing labor rights over “investor’s rights,” and to make the governing structures of the institutions more equitable and open.Afterthoughts: Critics Plan Offensive as IMF-World Bank Crisis Deepens (April 27, 2006)
The International Monetary Fund (IMF) faces “a huge squeeze on the budget,” and the World Bank approaches an even bigger crisis, INQ7 argues. Rich countries continue to dictate some of the Bank’s most important decisions and poor countries increasingly turn elsewhere to obtain loans. After years of trying to reform the Bretton Woods institutions, some NGOs have changed their strategies and are now seeking to disempower the two institutions.IMF – World Bank: Donor Nations to Focus on Growing States (April 24, 2006)
At the annual Spring Meeting of the International Monetary Fund (IMF) and the World Bank, the IMF’s 184 member countries authorized proposals that will increase the influence of a few emerging economies, such as China and Turkey. However, the US will probably oppose any significant decrease of its 17% share in votes, since it benefits from being the Fund’s only veto power. The World Bank discussed how poor countries could cope with the effects of climate change, produced by rich countries’ industries. To cut their own greenhouse emissions, poor countries request financial support from the “polluters.” (New York Times)Globalisation, Liberalisation, and Protectionism (April 2006)
This Third World Network report focuses on the role of the International Financial Institutions (IFIs) and the World Trade Organization (WTO) in causing global economic imbalances. The report critiques IFI policies such as loan conditionality and suggests that the WTO could lessen economic imbalances by addressing commodity prices and supply capacity in poor countries.Defining the Right to Food in an Era of Globalization: Report of the Special Rapporteur on the Right to Food (March 2006)
Expressing grave concern with the continuing increase in global hunger and the current food crisis in Africa, this report insists the time has come to view hunger and famine “as a violation of the human right to food.” While national governments have the primary obligation to fulfill their citizens’ right to food, in an era where domestic actions affect people in other countries, governments must assume obligations beyond their own borders. Being more powerful than individual states, the World Bank, International Monetary Fund and World Trade Organization, as well as large transnational corporations must also take on due responsibility to fulfill this human right. (United Nations)The Helsinki Process Proposes Joint Reporting to the World Bank, the IMF and the WTO (February 3, 2006)
The Helsinki Process proposes that the World Bank, the International Monetary Fund and the World Trade Organization jointly publish an annual “state of the world economy” report, to facilitate UN supervision of the institutions. The UN Economic and Social Council would use the report to evaluate the work, transparency and the predominant political convictions within these three powerful institutions. (GlobalFinland)2005
The IFI’s Role in Implementing Global Commitments to Achieve the Millennium Development Goals (September 2005)
The International Financial Institutions (IFI) continue imposing “privatization of public services and unilateral trade liberalization, attached to debt relief and other assistance” on recipient countries. This Global Unions statement to the 2005 Annual Meeting of the International Monetary Fund and World Bank, points out that “IFI lending and policy recommendations concerning social security and labour regulations should give priority to decent employment creation, comprehensive social protection, and respect of core labour standards.”
Monkey-Wrenching the Globalization Gang (August 25, 2005)
Is it possible to trace a parallelism between Colonialism and Neoliberalism, two different forms of domination? The author affirms that phrases like ‘building freedom through trade,’ ‘good governance,’ ‘working for a world free of poverty’ actually hide a new form of imperialism. The World Bank, the International Monetary Fund, the World Trade Organization, and even the UN lead this process of “neoliberal capture.” (Toward Freedom)
World Bank Policy, As Seen by the Deprived (July 21, 2005)
Spontaneous clashes have broken out in several Yemeni cities after the government decided to lift all subsidies on oil products. The government's move led to immediate and massive increases in gas and oil prices, hitting the country's poor the hardest. The abolition of subsidies followed intense pressure from the World Bank and the International Monetary Fund on the Yemeni government to limit public spending by cutting subsidies and introducing a sales tax. (Inter Press Service)Denying Democracy: How the IMF and World Bank Take Power from the People (May 2005)
This report examines the International Financial Institutions (IFIs) and their relationship with the countries they lend to. In response to criticism of the democratic deficit in the institutions, the World Bank and the IMF adopted Poverty Reduction Strategy Papers (PRSPs) to increase poor countries’ participation in poverty reduction. These papers, however, usually incorporate similar conditions to the “structural adjustment” that the IFIs encouraged in the past. Poverty reduction cannot be achieved without country-specific strategies, consultation with civic groups, and a more democratic decision-making process within the IFIs. (World Development Movement)Governance Reform of the Bretton Woods Institutions and the UN Development System (May 2005)
Sixty years after the creation of the Bretton Woods Institutions, the world is facing unprecedented problems. This Friedrich Ebert Foundation report highlights the ineffectiveness of global governance and calls for a stronger multilateral system to achieve the Millennium Development Goals. The report specifically outlines the eight major challenges that confront the international community today, and what can be done to stop them.An Exercise in Stalemate? (April 20, 2005)
This Center of Concern article summarizes the developments in the World Bank and International Monetary Fund 2005 spring meetings. According to the article, the meetings’ results reveal a “decision-making machinery in crises.” In spite of high expectations, the participants achieved almost nothing in the areas of debt cancellation for poor countries, innovative sources of finance, governance of international financial institutions, and trade.Kept in the Dark (April 2005)
The World Bank and the International Monetary Fund (IMF) frequently pressure poor country governments to overrule or sideline their democratically elected legislatures, denying citizens and their representatives the final say over economic policy choices. This briefing by the NGOs behind the International Parliamentarians’ Petition for Democratic Oversight of the IMF and World Bank calls on the international financial institutions (IFIs) to stop imposing economic policy conditions on poor countries, respect national laws and constitutional provisions, and help parliaments to play an effective role in negotiating or monitoring IFI-funded projects and activities.Democratizing the World Bank and IMF (February 7, 2005)
For decades, world leaders have appointed heads of international financial institutions behind closed doors without transparency and public scrutiny. This IFI Democracy Coalition statement calls for democratizing the outmoded model of governance and ending the secretive way of selecting officials for these powerful organizations. As a starting point, the statement calls for new methods in selecting the next World Bank President.Archived Articles
