Tuesday, February 16, 2010

The U.S. Has Veto Power in the IMF

So talk about a happy new capitalist world order is more than a bit premature (see below). Unless people think Washington is going to give up that veto power, ever. There's no reason to think that will happen. Rather, it's more likely we will see a collapse of international agreements and a world of regional blocs. More Copenhangen's and Doha's. Over this fragmentation the U.S. military will be charged with 'keeping order', a task that looks increasingly difficult.

Global economic power has shifted. As suggested by a nice Godfather parable by Hulsman & Mitchell, the United States is "slipping." We've moved from a uni-polar world to a multi-polar globe. The United States will remain the "chairman of the board," continuing to hold more IMF votes than any other single country - as well it should, as the world's largest economic and biggest contributor to the IMF. But it will have to share power, most notably with China. And this will be the real, long-lasting change at the IMF.

1'When the shoe is on the other foot: Changes in Global Governance" - Vreelander Blog

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