> From: [EMAIL PROTECTED] (Doug Henwood) > > Here's an article that I can't read, but maybe you or someone else can. One > of the authors, David Brooks, is the fellow who told me the story. > > Doug > > Badly translated, but I hope it will serve until Pen-l'ers do a rapid course in Spanish :-) Salud, Alex ................ This posting has been forwarded to you as a service of Accion Zapatista de Austin. La Jornada 4 de octubre de 1996 The WB-IMF meeting concludes with an appeal for `social equity'. Jim Cason y David Brooks, corresponsales, Washington, October 3th. The annual meeting of the WB and the IMF concluded with an appeal to keep the pace of free market reform and privatization policies. However, in the closing session it was underlined that such trends are not sufficient to ensure stability in developing countries. Therefore, both institutions invited their 181 country members to put an emphasis on social expenditure in order to alleviate poverty and improve income distribution. Such a fundamental swing, departing from the exclusive attention given to macroeconomic indicators and free market orthodoxy, takes place in a moment in which leading entrepreneurs, bankers and governments recognize the inability of standard recipies promoted by these institutions to ensure a stable investment climate in LDCs. James Wolfensohn, WB president, pointed that those countries showing progress in the economic and political spheres, should also be concerned with social progress. Michel Camdessus, FMI director, declared to the press that delegates in the meeting emphasized the relationship between social equity and keeping the pace of reform. Wolfensohn warned about the threaten that poverty and economic inequality may represent for stability and market development in LDCs. He insisted that the WB will keep evaluating progress in these areas. The IMF and WB also endorsed during this week a series of campaigns to face other problems, such as indebtness of the poorest nations, measures to ensure good administration and eliminate corruption in member countries, and the strengthen of the banking sector in many LDCs. Mexico, as the biggest client of the WB and the IMF, was frequently the focus of attention. However, leaders of both institutions were aware that such a position could be perceived as an additional burden to the already controversial conditionality of their programmes in LDCs. Wolfensohn, in response to a question made by journalists at the meeting, said that the WB decision of enlarging and raising the status of the office in Mexico is only meant to ensure a better representation in the country with the highest volume of WB's loans. "We do not interfere in any way in their domestic policies. We only want to improve what we are already doing in Mexico", he conveyed. He also added that Mexico has not opposed to these new measures, and that Mexico delegates at the meeting did not interpret this as an interference. Some countries, a.o: India, Pakistan and Malasia, publicly protested against these new FMI rules about public administration and reform. Indeed, some days ago staff members of the WB and the FMI recognized to have been instructed to tone down discussions in this respect with country members, to avoid offending or provocating them. Wolfensohn, despite this circumspection, did not repair to declare that "if evidence of corruption is found in projects in which we are involved, we will close them off". He added that though the WB should not interfere in domestic affairs, it "can promote a climate in which people fight against corruption". Noteworthy was, in this meeting, the change of rethoric with respect to previous practices of both institutions, known by their macroeconomic rigidity and application of policies oriented exclusively to market liberalization. Now they join in an appeal for a new approach which gives emphasis on social expenditure towards poverty alleviation and improving equity. Camdessus declared that the "fiscal adjustment should focus not only in reducing the deficit but also towards enhancing the quality of public expenditure, by allowing expenses in critical areas such as education and health". Wolfenson added that `assistanship programmes are not charity', but are critical efforts to ensure stability and conditions for investment and trade in (with?) LDCs. ............... Next, there come some paragraphs about a demonstration at the entrance of the IMF headquarters, organized by NGOs and -especially- Mexican `debtor' organisations. Apparently, they manage to close `simbolically' the doors of the FMI for some minutes. The demostration was not repressed by security guards because of the presence of journalists. On this occassion, Wolfensohn said that the WB and the NGOs are working together and have selected 10 countries (Mexico a.o.) which will be the focus of a research about the impact of adjustment policies. He added that he is "looking forward to this direct assessment made in collaboration with NGOs, in order to know whether what we are doing is good or bad" ................ Alex Izurieta E-mail: [EMAIL PROTECTED] Institute of Social Studies P.O. Box 29776 2502 LT The Hague Tel. 31-70-4260480 Fax. 31-70-4260755
