With their own finances already stretched from bailing out Greece, Ireland and Portugal — and traditional allies like the United States wrestling with their own problems — eurozone countries were looking to the IMF to use its resources and rescue experience to help prevent the debt crisis from spreading to large economies like Italy and Spain.
But within the IMF, the powers have shifted.
Until two years ago, the IMF — dominated by the traditional powers in Europe and the U.S. — mostly applied the painful adjustment programs that are attached to its financial lifelines to poor and emerging economies in Asia, Latin America and Africa.
Now, it’s growing powers like China, Brazil and South Africa that have to decide whether helping Europe is a worthy investment.
http://www.thestar.com/business/article/1081319--g20-world-leaders-fail-to-agree-on-how-to-boost-imf-firepower
Friday, 4 November 2011
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