In the West, capitalism reigns triumphant. Living standards, wealth, and technological development in the capitalist Western countries surpass anything seen before in human history. But why has capitalism so obviously failed in most developing countries? Why are some saying that capitalism is in a state of crisis today in the Third World? Does the success of capitalism depend on Western cultural values that simply don't translate to the Third World? Or can economic and political reforms, especially reform of property rights, enable developing countries to share the same fruits of capitalism and free enterprise that we enjoy in the West?
U.S. Secretary of State Hillary Clinton came under attack last week for soft-peddling human rights during her visit to China...
"Just -- and I hope you were able to hear of some of the points that Peter was making job reaction what what what's coming out of London again."...
This week on Uncommon Knowledge columnist James Delingpole discusses, with Hoover research fellow Peter Robinson, the European Union, the Green movement, and socialized medicine. (47:41)
Rupert Murdoch weighs in on capitalism, China, Google, and more. . . .
In the Age of Discontinuity, published by Harper & Row at the height of the Vietnam War and some 25 years after the end of World War Two, management guru Peter Drucker wrote about managing change when there is a total disconnect between the past as we perceive it and the present evolving into the future. . . .
If the end of the Cold War resulted in the liberation of Eastern Europe, it also brought about something of a liberation in Latin America as well...
Analyzing the global financial crisis and its aftermath in the United States and the United Kingdom with Kevin Warsh and George Osborne.
Analyzing the future of democracy with former prime ministers and presidents. Featuring Nick Clegg, Felipe Calderón, Toomas Henrik Ilves, and Anders Fogh Rasmussen.
Hoover fellow Michael Spence ponders India, China, and the one essential element in economic growth: innovation. An interview with Peter Robinson.
Matt Ridley, author of The Rational Optimist, insists that we humans must face the truth about ourselves—no matter how good it might be. An interview with Peter Robinson.
The Nobel economist says the health-care bill will cause serious damage, but that the American people can be trusted to vote for limited government in November. . . .
To this day, neither the IMF or other transition scholars have yet proposed any real reform of Russia's banks. Rather, they, as exemplified in this most recent IMF paper, choose to reiterate shopworn cliches, and then wonder why Russia's banks, and its economy in general, remain in need of reform.
The Bush administration always insisted that encouraging democracy abroad was critical for international security. Europeans—surprise!—now agree. By Amichai Magen.
In July 1944, delegates from forty-four nations gathered in Bretton Woods, New Hampshire, to design a postwar international monetary system that would promote world trade, investment, and economic growth. The framers created the International Monetary Fund (IMF or fund) to supervise the new "Bretton Woods monetary regime" that sought to keep national currencies convertible at stable exchange rates and to provide temporary, low-cost financing of balance-of-payments deficits resulting from misaligned exchange rates.
In reality, the framers of the Bretton Woods regime created an international price-fixing arrangement enforced by the IMF. After joining the fund, each member country declared a value for its currency relative to the U.S. dollar. The U.S. Treasury, in turn, tied the dollar to gold by agreeing to buy and sell gold to other governments at $35 an ounce; the inflation of the 1960s, however, made the U.S. commitment to sell gold at that price unsustainable. To preserve U.S. gold reserves, President Richard Nixon closed the gold window in August 1971, effectively uncoupling the dollar from gold and ending the fund's original mission of supervising a system of pegged exchange rates. Looking for a new mission, the IMF quickly evolved into a financial medic for developing countries. Beginning in the early 1970s, the IMF skillfully used a series of global economic crises to increase its capital base and financing activities.
Has the expansion of IMF financing activities alleviated the balance-of-payments problems of member countries and encouraged prudent, progrowth economic policies? The evidence, much of it supplied by the IMF, demonstrates that the fund does more harm than good. Historical studies as well as recent initiatives in Mexico, East Asia, and Russia reveal that IMF financing programs, which rarely prescribe appropriate economic policies or sufficient institutional reforms, are at best ineffective and at worst incentives for imprudent investment and public policy decisions that reduce economic growth, encourage long-term IMF dependency, and create global financial chaos.
It is time to scrap the IMF and strengthen market-based alternatives that would promote an orderly and efficient international monetary system. Key reforms include floating exchange rates, internationally accepted accounting and disclosure practices, unfettered private financial markets, and fundamental legal, political, and constitutional rules that would allow free markets to emerge and countries to achieve self-sustaining economic growth and development.
China has come to Africa. Can U.S. policy makers find ways to mesh, not clash, with Beijing’s interests? By Christopher C. Starling.
The advantage of moderation