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Venezuela pulling out of World Bank, IMF





bluedragon
http://news.bbc.co.uk/1/hi/business/6610333.stm

This is huge! Venezuela has no debt and Hugo Chavez doesn't seem to trust these institutions anymore. He even says their collapse is imminent!

This is a big statement from a world leader on a big world situation.
inphurno
i have to agree this is amazing news. but its not huge its like 10 times bigger than huge. its horrible that oil revenues would be the way that they get out of a constant state of economic paralysis which is the reality that developing nations face when they get "help" from the imf and/or the world bank. if he goes forward with his "Bank of the South" project i would hope that countries like brazil and india would fully support the venture. i doubt mexico would get involved not only because of what happend during the last elections but because traditionally the ruling class of mexico (whether its the pan or pri) love to do business with america/imf/the world bank.
LumberJack
Makes you wonder about what all those other countries are going to do?

I am more intrigued about the South American Bank that he would like to set up. Is it going to facilitate the collapse of the world bank and IMF or is it just going to be another version.

Chavez definitely knows how to stir the pot. Good for him.
inphurno
this isnt about stiring the pot... the world bank, imf and wto have really put a strangle hold on developing nations essentially making them do what the "west" wants putting most of these countries back in a state of economic colonialism. i doubt that the world bank/imf are going to collapse anytime soon but people have to understand what these organizations are really doing cause they are not out there trying to help anyone, except multinationals.
bongoman
I am not really surprised to be honest, not just because this is Chavez's style but because countries of "the global south" routinely squabble in their relationship with the IMF and World Bank, There's really are problems with the way these Bretton woods institutions are run, I am not implying that Chavez is not completely at fault either because these institutions are notoriously hard to reform too for either side (though the developed nations do have the upper hand when it comes to control of it). Until then we're all screwed.
smarter
bluedragon wrote:
This is a big statement from a world leader on a big world situation.


Chavez? world leader??? ha ha Laughing

Chavez is just a stupid populist who will ruin Venezuela. People from poorer countries can not resist populism. "Capitalists are evil! Kill them all and tomorrow we will have everything: houses, cars, jobs..." type of message... Rolling Eyes

IMF is not evil or good! It's just a bureaucratic international institution: it mainly provides financial assistance to countries that experience serious financial difficulties. Many governments criticize IMF but their countries do not leave IMF. Nobody forces any country to be member of IMF!

Quote:
www.imf.org:
"The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment."


Only a few countries are not members of IMF: Cuba, North Korea, Venezuela plus half a dozen tiny countries as Andorra, Nauru, Tuvalu...
Rengidar
Well, those are quite interesting news indeed.

Not that I cared much about it. Still...


I agree with Smarter on this one point that:

Quote:
Chavez is just a stupid populist who will ruin Venezuela. People from poorer countries can not resist populism. "Capitalists are evil! Kill them all and tomorrow we will have everything: houses, cars, jobs..."


These types of things were typical to Soviet Union. Leave all democratic (yes, they are!) institutions which try to control or regulate *anything* and say they are evil because all they want is to use poor countries.

It is not true. I am not saying IMF or WTO is so very fantastic but they are needed and they do what they were made to do.


Venezuela is on its way down. Poor country...
joshumu
Pulling out would be a big show of independence. But it could possibly hurt them i in the long run.
Quote:
Leave all democratic (yes, they are!) institutions which try to control or regulate *anything* and say they are evil because all they want is to use poor countries.
Sounds about right to me. Iv never been to Venezuela but in Mexico and central America most people have little trust for western institutions, organizations, companies and programs. And I don't blame them in the lest. I'm no history expert but i do know that every Latin American country has been screwed by the west in one way or another. And even if IMF feeds a few mouths or builds a few schools, it is ultimately still a tool for control.
So i wish Venezuela luck, hopefully it will be a step for the greater liberation and independence of Latin America.
TomGrey
The PEOPLE of the Latin American countries have been screwed by their ruling elites, over and over.
Local top dogs in Venezuela screwing the poor people, and making laws to benefit the rich against the poor.

It would be great if Chavez was successful, but I doubt that he will be. More likely he will suck his oil cash cow dry, and consume it instead of invest it, and be surprised that his poor people remain poor.

What poor people need are job offers from peaceful, private companies.

The real problem with the WB and the IMF is that, instead of helping private companies offer more jobs, they mostly help gov't officials become more corrupt and imperial and elitist. They are NOT needed, and might even be counter-productive. But much of their free-market advice is more likely to lead to better lives than socialist junk.
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