Friday, October 07, 2005


Rewriting the rules of the global economy

Perhaps the International Monetary Fund is unfairly criticised.

The government of the United States is criticised this week by the private sector for protectionist policies; which are discouraging FDI.

"President George W. Bush should issue a policy statement—just as presidents Carter and Reagan did—to indicate that FDI is welcome. The United States should continue to negotiate and ratify bilateral investment treaties and investment provisions in trade agreements so as to establish ground rules for fair treatment of investment. . . And while the president should fully utilize his authority to block foreign acquisitions that genuinely threaten US national security interests, America should welcome all other FDI with open arms."

Bilateral treaties in a global economy - this surely creates big problems for the IMF. Anyway, it would help in the short-term for the WTO to list the 'national security' exceptions it allows to restrict free trade.

And then, there's the need for independent financial audit.
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