-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- -------- Original Message -------- Subject: Ex-IMF Head Confesses Russian Disaster Date: Sat, 11 Mar 2000 23:26:38 -0600 (CST) From: Michael Eisenscher <[EMAIL PROTECTED]> Organization: ? To: undisclosed-recipients:; "Russia's transition to a market economy wasn't anywhere near as successful as was thought. Output today is 50 perecnt of what it was at the start of the transition. Poverty has increased dramtically....The strategy of focusing on privatization and not focusing on inequality has made the principles of democracy far weaker...." _______________________________________________________ BUSINESS NEWS Western Lending To Russia Fails To Foster Reforms NEW YORK, Mar 9, 2000 -- (Reuters) Western lending to Russia has failed to foster desired reforms and international financial institutions should consider curbing what looks like a long-term dependency on foreign aid, the World Bank's former chief economist said on Wednesday. Joseph Stiglitz, speaking at a forum on aid to Russia, said he backed some of the ideas in a congressional commission's report, released earlier in the day, that said the International Monetary Fund should stop long-term lending and focus on short-term emergency financing. "I think the recommendations ought to be taken quite seriously that the IMF should not be involved in what has turned out to be a long-term lending situation," said Stiglitz, who resigned from the bank last year saying he wanted to speak his mind. "Russia's transition to a market economy wasn't anywhere near as successful as it was thought. Output today is 50 percent of what it was at the start of the transition. Poverty has increased dramatically. "The strategy of focusing on privatization and not focusing on inequality has made the principles of democracy far weaker than they might have been," he said. WEST NEEDS TO STAY INVOLVED But the deputy head of the IMF department dealing with Russia, Gerard Belanger, argued the IMF had achieved success as well as failure in Russia, and said the West needed to remain involved in Russia's move to a market economy. "Should the IMF remain engaged with Russia? That question is asked only by those who see things in two colors, black and white," said Belanger, another panelist at the forum. "But there are many shades of gray." He said Russia had achieved improvements in fiscal revenues, authorities were beefing up tax collection, strengthening oil prices had buoyed revenue from exports and the IMF was able to influence policies during negotiations on loan programs. But Belanger said the economic plans of Vladimir Putin, likely successor to former President Boris Yeltsin, remained "a question mark". "(Putin) praised direction of policies over the last two years as being suitable for the Russian model, so maybe the government will continue the economic reforms already in place but without a comprehensive program in mind," Belanger said. RUSSIAN REVIVAL BEGINS The IMF and World Bank have pumped tens of billions of dollars into the Russian economy in the eight years since the Soviet Union fell apart. But economic output is only just beginning to revive from a long and painful slump and millions of Russians live below the poverty line. The most spectacular failure came in the summer of 1998 when, weeks after winning a multi-billion dollar rescue deal, Russia defaulted on some debt and devalued its ruble currency. A year later the IMF resumed lending to Russia but this money was to settle old Russian debts to the Fund and payments were halted again last year because Russia was not meeting the program's structural conditions. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
