Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts

Wednesday, June 5, 2013

Throw open the doors

The UN needs to make its job selection process transparent

Alluding to the United Nations’opaque selection process for candidates to its key bodies, Sir Richard Dolly, ex Director of UNICEF, makes a candid admission: “There is a need for some process of open hearing and interview of the best qualified potential candidates.”  The issue of selection cropped up when the U.N. Conference on Trade and Development announced the recruitment for the coveted post of secretary general. As per the UN’s cyclical selection process, the next man for the secretary general position to the UNCTAD must be from Africa. But, as is often the case, there is already a long queue in the run-up to the announcement of selection in September this year. Even curiouser, the UN Secretary General Ban Ki-Moon, who has the power to select, has refused to divulge the details of the shortlisted candidates.

The UN has a particularly blemished record when it comes to the selection of candidates for its various arms and agencies. The IMF and the World Bank too have a similar dismal record of recruitment, which they try to defend under the garb of “gentlemen’s agreement.” According to the agreement, the head of the IMF and the World Bank must either be an American or a European. That's a brazen display of economic and racial apartheid. Despite wide-ranging agreement among its members to drop the discriminatory policy, these bodies have not budged and obnoxious policy has endured to this day. What's even more exacerbating is that the rules of selection at these two apex bodies remain a closed-door exercise, with no information shared beyond their cloistered foyers.

 It seems that in the matter of selection of candidates for UNCTAD, Ban Ki-Moon is drawing his strategy from history, even though there is a need for adopting a new tack. According to Sir Dolly, eminent experts in the field like the Nobel laureate Joseph Eugene Stiglitz, an American economist and professor at Columbia University, and Jose Antonio Ocampo, former Under-Secretary-General of UN, ought to be in Moon’s selection panel. Though Moon ought to pay heed to what these respectable voices have been urging him to do, he has the luxury of acting unilaterally. Never in the history of the United Nations, a secretary general’s choice of selection has been rejected on the floor of the house.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Monday, February 4, 2013

Let’s test your endurance...

The intention is good, but with their own policy differences, can the Euro zone countries successfully execute the stress test?

What works for one might not work for another! Policy makers at the European Union seem to have simply ignored this age-old saying. They have not only instructed the Committee of European Bank Supervisors to organise a stress test on the European banking system, but are also planning to keep the exercise similar to the ones recently completed in the US and UK. And, no wonder, the decision seems to be in a hurry!

Raison d’ĂȘtre: European banks are under immense pressure. As per the European Central Bank (ECB), lenders in the Euro zone will have to write off $283 billion in the next two years as loans to corporations and households go bad. In fact, Moody’s has just slashed the credit ratings of 25 Spanish banks, arguing that the speed and severity of Spain’s recession will inevitably hit their balance sheets. And that’s the case with almost all member states. “Policy-makers and market participants will have to be alert in the period ahead. The credit cycle has not yet reached a trough,” says the latest Financial Stability Report from ECB.

Moreover, there has been no clear policy initiative till now to force European banks to raise their capital cushions, despite the fact that the region has the biggest problem with toxic assets. According to the International Monetary Fund (IMF), the global banking system holds $2.8 trillion in toxic assets, with a little over half – $1.426 trillion – on the books of Western European banks, while US banks account for only $1.05 trillion. In fact, IMF estimates that it would take a fresh $975 billion to recapitalise Western European banks to levels that prevailed in the mid-1990s, compared to $500 billion for the US banks.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.