Rich Nations Absent From UN Conf. ... Correa Calls for New Finance System, Press Release (paper)


 President Rafael Correa of Ecuador gave a dynamic and stirring speech. When he said he would like the IMF to disappear he received a standing ovation. Correa is firmly in the camp of the Latin American countries breaking away from the Washington Consensus. He told us how several Latin American countries are distancing themselves from the IFIs (International Financial Institutions) and forming their own Bank of the South and regional trading block. Correa presented a clear vision of proactive steps that developing countries can take to become economically sovereign and autonomous and out from under the control of super power of the North.

Rich Nations Absent From UN Conference on World Economy. Correa Calls for New Finance System
By Manila Ryce
Published Friday, June 26th, 2009, 2:15 am
President Rafael Correa of Ecuador is unlike career politicians in the United States. He actually sees his job as not an end in itself but as a means to accomplish social justice. Correa is also an economist who was educated in the US and has displayed his Chavez-sized balls by rejecting his nation’s national debt as illegitimate and pledging to fight creditors in international courts. Democrats, take note. This is what an actual liberal looks and sounds like.
“We are now dealing with the consequences of excluding the majority from the decision-making process, but it is the majority that has to pay the worst consequences and the worst price for the errors made by - I’m sorry to say it - a greedy minority,” Miguel D’Escoto, the president of the UN General Assembly, told Al Jazeera.

Capitalism, IMF and World Bank under fire at U.N.

High hopes for UN Financial Summit appear dashed
NEWS SOURCE: The Boston Globe | 19 days ago
Developing nations' hopes for forging a new, more just economic world order appear unlikely to be quickly realized as the United Nations' Conference on the World Financial and Economic Crisis draws to a close Friday. Only 10 world leaders, mostly...
ECONOMY: "Patching Up Bretton Woods Makes No Sense"
NEWS SOURCE: Inter Press Service | 19 days ago
The world community must take immediate action to overhaul the current global financial system – that's what a vast majority of political leaders and policymakers from the developing world who are attending a three-day U.N. conference on the global...
Pak Tribune, Pakistan: Capitalism, IMF and World Bank under fire at U.N.
NEWS SOURCE: Uinta County News | 19 days ago
Ecuador`s left-wing President Rafael Correa blamed capitalism on Thursday for the global financial crisis, suggesting at a U.N. conference that the International Monetary Fund and World Bank be abolished. Criticism of the IMF and other so-called...
Correa calls for new finance system
NEWS SOURCE: Al Jazeera | 19 days ago
The president of Ecuador has criticised capitalism for its role in the global financial crisis, in a speech to delegates attending a United Nations conference on the state of the world economy. Raphael Correa also suggested on Thursday that the...
Latin America should replace IMF: Correa (AFP)
NEWS SOURCE: Xtra News | 19 days ago
Ecuadoran President Rafael Correa on Thursday called for the establishment of a regional monetary system for Latin America that would replace the International Monetary Fund (IMF). Speaking at a UN high-level conference on the impact of the global...
Ecuador calls for addressing current world financial crisis within UN
NEWS SOURCE: | 19 days ago
Ecuador on Thursday called for global efforts to tackle the current world financial and economic crisis within the framework of the United Nations and to reform the existing international financial system.     The appeal came as Rafael Correa,..
ECONOMY: "Patching Up Bretton Woods Makes No Sense"
News Source: Inter Press Service | 19 days ago
The world community must take immediate action to overhaul the current global financial system – that's what a vast majority of political leaders and policymakers from the developing world who are attending a three-day U.N. conference on the global...

Several stories here: has article below and several others plus a great list of weblinks:

ECONOMY: "Patching Up Bretton Woods Makes No Sense"
By Haider Rizvi

UNITED NATIONS, Jun 26 (IPS) - The world community must take immediate action to overhaul the current global financial system – that's what a vast majority of political leaders and policymakers from the developing world who are attending a three-day U.N. conference on the global economic crisis are saying.

"The financial debacle is just a symptom of the crisis of a system that privileged the speculative-financial economy over the real economy, where goods and services are actually created to meet the needs of human beings," Ecuadorian President Rafael Correa Delgado told delegates gathered in the General Assembly Hall Thursday. 

In his hard-hitting speech, like many other leaders from the developing world, Correa held the International Monetary Fund (IMF) and the World Bank, as well as the rich countries of the North, responsible for the current economic meltdown that has had a devastating impact on poor nations. 

"Patching up the Bretton Woods system, which we do not control, makes no sense for the countries of the South," he said. "This is our opportunity to consolidate our presence and to develop greater power of deliberation and decision in international fore to, finally, become the owners of our own destination." 

Correa thinks that the countries of the South must develop "their own financial architecture" and that they should try to create a "coordinating entity of planetary proportions, based on a monetary council established with "clear representation and accountability criteria that endorses new foreign exchange commitments and regional institutional arrangements with an issuance of Special Drawing Rights (SDRs)." This issuance of SDRs, according to him, postponed for decades by the big powers of the North, "will contribute to break the monopoly in the provision of liquidity that guarantees the unipolarity of the U.S. dollar and the asymmetric decisions of the IMF." 

Correa described the current global financial system as "unhinged by speculation and privilege" and blamed the U.S. financial industry for the plight of millions of poor who are suffering. "This financial crisis originated in U.S. financial markets. [But the] South, which had no responsibility, has become its main victim," he said. 

At the conference South Africa’s minister of international relations and cooperation, Maite Nkoana-Mashabane expressed similar views. 

"We need fundamental and far-reaching governance reforms at Bretton Woods institutions, inter alia by increasing the voice and participation in the decision making... for developing countries," he said. 

In his view, the world needs interventions in four key areas in order to address the current financial crisis - balance of payments support in the case of a sudden stop of capital flows, investment in social equity, trade finance support to ensure the world trade does not dry up and increased aid for low-income countries. 

According to Mashabane, about 90 million people are likely to loose their jobs due to the current economic crisis. Rising unemployment and declining wages and remittances, he said, would push "millions of people back into poverty in 2009." "The crisis has shown that the current structures and instruments of financial institutions are systemically fragile and largely inadequate to address the impact of the crisis on developed and developing countries," he said. 

Studies show that that by the end of March this year, the U.S. economy shrank by more than six percent and its investment dropped by 38 percent. Similarly, among the most industrialised nations, Japan is likely to face a recession at the rate of three percent and the Eurozone is expected to see a fall of four percent of its GDP. 

According to U.N. researchers, due to the current economic meltdown, about a billion people in the world are likely to go hungry. There are also projections about more violence and conflicts in many countries around the world as a result of unemployment and poverty. 

At the conference, no industrialised nation has indicated any kind of willingness to endorse the developing nations’ demands to reform the Bretton Woods institutions, which impose often questionable conditions on loans and aid to developing countries. 

In her speech, the U.S. envoy to the U.N., Susan Rice, said her country "is here to participate in this important conversation, to listen, to exchange, to work with you in a spirit of cooperation." However, she gave no sign of support for reforms at the IMF and World Bank. 

Though seemingly concerned about the current financial crisis, representatives from the European Union (EU) also appeared to be indifferent on this subject. 

"The EU is in favour of a key role for the U.N. in the effort to help developing countries tackle a variety of global social, economic, financial, and environmental challenges and foster sustainable development in all its dimensions," said Helena Bambasova, the deputy minister from the Czech Republic on behalf of the EU. 

In their speeches, both U.N. Secretary General Ban Ki-moon and U.N. General Assembly president Miguel D’ Escoto were on the side of those pushing for revamping of the world’s financial institutions. 

"The world institutions created generations ago must be made more accountable, more representative, and more effective," said Ban in a statement. 

For his part, D’Escoto agreed with Ban and urged the world community to take collective action to prevent the "global crisis, with its myriad faces, from turning into a social, environmental and humanitarian tragedy." 

Delegates at the conference are due to reach an agreement on Friday. 

The above article from IPS:


Powered by Drupal, an open source content management system