The following illustrates the problems with the ultra-leftist position that no reform of these admittedly largely imperialist structures is possible. These structures are in any case constantly under pressure from innumerable forces and getting remodelled and reproduced continuously. They are not static immobile entities however oppressive and exploitative they are. Although the pressure for change is less in 1999 than in 1998 the following marks a signficant shift, even if Stiglitz is a controversial figure. The full article is interesting. I do not know how much PEN-L gets pestered by copywrite enforcers. For this reason and for reasons of brevity I am just posting the summary. Chris Burford London >Global Intelligence Update >Weekly Analysis Septemer 20, 1999 > >World Bank Reverses Position on Financial Controls and on Malaysia > > >Summary: > >The World Bank reversed its opposition to short-term >capital controls and announced that Malaysia's experiment with >capital controls was, in effect, a success. Since the World Bank >acts on the distilled essence of conventional wisdom, this means >that the international financial community no longer regards either >capital control or Malaysia's prime minister as taboo. > >The most important short-term consequence of this change will be on >Japan, which has toyed with the idea of capital controls. But more >importantly in the long run, the rehabilitation of Mahathir from >lunatic to visionary will bring his other ideas into play. Of >particular importance is his idea of a regional Asian bloc >excluding the United States, based on the yen and Japan, with >capital controls as a regional management tool. Neither of these >outcomes is intended by the World Bank or the IMF, but both are the >embodiment of the unintended consequence.
