Rich rubbish radical reform at UN economic summit

The World Development Movement is disappointed that a UN summit set up to discuss ‘profound reform’ of the global economic system has delivered ‘more of the same' because some rich countries rubbished more progressive ideas.

The World Development Movement's policy officer, Vicky Cann said:

"The upshot of this summit is that it has delivered more of the same. But the same isn't good enough. Rich countries including the UK have rubbished some of the progressive ideas put forward by leading experts before this conference, which could genuinely have delivered profound reform of the economic system. As a result, such proposals are nowhere to be seen. This simply demonstrates again rich countries’ determination to maintain the political and economic status quo.

"Most concerning is the summit's faith that free trade will deliver a route out of the crisis, when the evidence shows that free trade and deregulated markets have been one of the most important causes of the current crisis.

"The proposals for reform of the IMF, World Bank and WTO are too weak. These institutions reinforce the elitist, outdated power relations between rich and poor countries and their policy prescriptions over the past twenty years have proved disastrous for developing countries. We need new economic institutions with progressive economic thinking that are fit for purpose in the 21st century that will act in the interests of developing countries.

"April's G20 summit and next month's G8 meeting are simply rich kids' talking shops that are not interested in radical reform, despite rhetoric that promises otherwise. The UN is far more representative yet it has been completely undermined by the rich kids wanting to maintain their power and influence at all costs. At this rate it is incredibly difficult to see who, when, where or what will deliver the change that is so desperately needed by the world's poor who are most vulnerable to this crisis."

ENDS

Notes to editors

The World Development Movement recommends replacing the IMF with a new institution much more closely aligned with Keynes’ original idea of an International Clearing Union which would work to bring both debtor and creditor nations into balance. The World Bank should be replaced with a far more democratic and legitimate World Development Fund which would make grants and not loans, and perhaps come to be seen as a ‘global social security system’.

For a detailed analysis on the case for replacing the World Bank and the IMF see Out of time

The World Development Movement (WDM) tackles the underlying causes of poverty. We lobby decision makers to change the policies that keep people poor. We research and promote positive alternatives. We work alongside people in the developing world who are standing up to injustice.

Kate Blagojevic
Press officer, World Development Movement
0207 820 4900/4913, 07711 875 345, Email: kate.blagojevic@wdm.org.uk