Failed State Index
Thursday, 21 June 2007
Fazle Rashid
BANGLADESH happily is not in the list of 'failed state'. Iraq is ranked as the most unstable country in the world behind Sudan. Failed State Index compiled by Foreign Policy magazine the Fund for Peace has ranked Afghanistan another war-torn country in the eighth place. There is no sign yet on normalcy and peace returning to Iraq and Afghanistan.
The report said: 'Their experiences show that billions of dollars in development and security aid may be futile unless accompanied by a functioning government, trustworthy leaders and realistic plans to keep the peace and develop the economy' New York Times reported today, quoting a Reuters story.
Meanwhile, the stingless IMF, under pressure from the Unites States and with China being the principal target, has pledged to list the names of the countries manipulating the value of their currencies and undermining global trade, Wall Street Journal (WSJ) reported Tuesday.
IMF has announced a set of rules guiding its members on how they should run their exchange rate policies and what is acceptable to international community and what is not, the managing director of the Fund, Rodrigo Rato said.
The Fund however has expressed its helplessness saying it has no authority to enforce its decision and force violators to follow its decree. The Fund said it would identify the violators and 'shame them' to accept the new rules. Many US lawmakers, manufacturers and unions have been clamouring to punish China by imposing exorbitant tariffs on its imports to US.
Treasury Secretary, Commerce Secretary and Federal Reserve have however counselled to go slow and not to rush into any hasty decision. US officials unhappy with the functioning of the Fund accused it of being 'asleep at the wheels' when it comes to exchange rate. America has been able to garner the support of the Group of 8. The IMF is operating under regulations made in the seventies after the collapse of the international gold standard and fixed exchange rate system.
IMF has membership of 185 nations. The new rules do not require the IMF to prove ill intent. It can find a member nation to be a currency manipulator if the result of its policies is fundamental exchange rate misalignment or large and prolonged current account deficit or surpluses, WSJ said.
China under pressure to upswing the currency of its value has ignored such calls. China posted a $233 billion trade surplus with US last year. The US Treasury Secretary Henry Paulson hopes the IMF will pursue its new announced policies with vigour. Paulson has also advocated a less confrontational approach to the US-China economic relations. China has said it would not be drawn into doing anything hastily and relax their grip on Yuan gradually. All multilateral institutions like the World Bank, IMF, WTO and ADB have become stingless and lost their relevance.
BANGLADESH happily is not in the list of 'failed state'. Iraq is ranked as the most unstable country in the world behind Sudan. Failed State Index compiled by Foreign Policy magazine the Fund for Peace has ranked Afghanistan another war-torn country in the eighth place. There is no sign yet on normalcy and peace returning to Iraq and Afghanistan.
The report said: 'Their experiences show that billions of dollars in development and security aid may be futile unless accompanied by a functioning government, trustworthy leaders and realistic plans to keep the peace and develop the economy' New York Times reported today, quoting a Reuters story.
Meanwhile, the stingless IMF, under pressure from the Unites States and with China being the principal target, has pledged to list the names of the countries manipulating the value of their currencies and undermining global trade, Wall Street Journal (WSJ) reported Tuesday.
IMF has announced a set of rules guiding its members on how they should run their exchange rate policies and what is acceptable to international community and what is not, the managing director of the Fund, Rodrigo Rato said.
The Fund however has expressed its helplessness saying it has no authority to enforce its decision and force violators to follow its decree. The Fund said it would identify the violators and 'shame them' to accept the new rules. Many US lawmakers, manufacturers and unions have been clamouring to punish China by imposing exorbitant tariffs on its imports to US.
Treasury Secretary, Commerce Secretary and Federal Reserve have however counselled to go slow and not to rush into any hasty decision. US officials unhappy with the functioning of the Fund accused it of being 'asleep at the wheels' when it comes to exchange rate. America has been able to garner the support of the Group of 8. The IMF is operating under regulations made in the seventies after the collapse of the international gold standard and fixed exchange rate system.
IMF has membership of 185 nations. The new rules do not require the IMF to prove ill intent. It can find a member nation to be a currency manipulator if the result of its policies is fundamental exchange rate misalignment or large and prolonged current account deficit or surpluses, WSJ said.
China under pressure to upswing the currency of its value has ignored such calls. China posted a $233 billion trade surplus with US last year. The US Treasury Secretary Henry Paulson hopes the IMF will pursue its new announced policies with vigour. Paulson has also advocated a less confrontational approach to the US-China economic relations. China has said it would not be drawn into doing anything hastily and relax their grip on Yuan gradually. All multilateral institutions like the World Bank, IMF, WTO and ADB have become stingless and lost their relevance.