Despite the economic storm, European voters refuse to let the traditional left take the wheel. By Patrick Chamorel.
The Bush administration always insisted that encouraging democracy abroad was critical for international security. Europeans—surprise!—now agree. By Amichai Magen.
Those who serve America abroad are being asked to do more and more with less and less, but our diplomatic corps is doing just that as it performs new duties in Baghdad and the world. By Cecile Shea.
The Tories have finally pulled even with Labour, Tony Blair has promised to step down this spring, and nobody knows what Gordon Brown, Blair’s heir apparent, will do when he finally becomes prime minister. What fun! By Gerald A. Dorfman.
The campaign to convince the international community to write off the debts of the several dozen poorest countries is morally inspiring, politically timely—and terribly misguided. By Hoover fellow Larry Diamond.
How should we deal with the reality of a United States that a decade after the fall of the Berlin Wall is the world’s ideological reference, economic innovator, and only global superpower? Hoover fellow Ken Jowitt offers some suggestions.
The man who inspired the Velvet Revolution. By Iva K. Naffziger.
Robert Conquest on the United Nations, the European Union, and the decline of the West.
The International Monetary Fund’s cumbersome, bureaucratic decision-making process may have been suited to the financial markets of 1944, the year the IMF was created, but in the financial markets of 1999 the IMF looks like a dinosaur. Hoover fellow Lawrence J. McQuillan offers a proposal to deal with the IMF by making it . . . extinct.
NATO is getting bigger—and a good thing, too. By Hoover visiting fellow Donald Abenheim.
Hoover fellow Michael McFaul, who has the president’s ear on Russia, argues that promoting freedom is both moral and wise.
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.
Self-government needs the nation-state
The American stake in a sovereignty dispute
Europeans don’t come from Venus. They are the conflicted inheritors of a long military tradition which still survives — but which nearly devastated their continent, leaving in its trail a complex
A political settlement before any withdrawal.
China has come to Africa. Can U.S. policy makers find ways to mesh, not clash, with Beijing’s interests? By Christopher C. Starling.
At 50, Europe is not one story, but many. By Timothy Garton Ash.