Ironworks Gaming Forum - View Single Post

Moridin · 05-03-2001, 05:50 PM

Just a little info on the IMF and WTO and what people are protesting for

The IMF is an orginization conceived after WWII to 'stabalize' world economies. The basics of it are that any country can 'apply' for a loan from the IMF in pretty much any currency (USD, Francs, Pounds....). Each country keeps a store of their currency at the IMF for transfer of these loans. The countries can then use this money for various things (there are limits established in each case by the IMF). They can pay off debts (debt for imports), make country improvements, establish health orginizations (hospitals, traveling doctors....) or a miriad of other things. They have to payback this loan over time and it is usually without or with very little interest.
The major protest agianst the IMF is for the foregiveness of Billions of dollars in loans to third world countries. The protestors feels two things 1) that these should not have been loans, but rather 'aid' to the country and 2) the restrictions that the IMF puts on the use of the money is unfair and unjust. IMHO the IMF should never even have lent this money in the first place. The majority of these loans are 'swallowed' up by the government of the country and are never used for their true purpose. The money should be paid back or else the countries that put up the money for the loans have to take it as a write-off and that is unfair to the taxpayers of those countries.

As for the WTO. It is an organization that 'controls' trade around the world. There are a couple of key points to the WTO. First if you are a member you have to treat all other members with the same 'trade restrictions and regulations'. What this means is that if you put a tariff on one countries imports it has to be placed on ALL countries imports. The goal of the WTO is to basically allow the free flow of goods and services across countries borders. An interesting thing from the WTO is the most favored nation status. The people in the US probably have heard that China has been given 'most favored nation' status. What this means is that although China does not belong to the WTO, the US will drop its trade restrictions down to the levels granted to WTO members. I.e. there is a tariff on sugar imported into the US. For WTO members it is something like 100% tax and for non WTO members it is something like 200% (rough numbers) so with MFN status China can export sugar to the US with only a 100% tariff.
The major protest against the WTO is that 'free trade' will make industrial countries lose major corporations and jobs to overseas 'cheap labor'. Also, 'free trade' will promote and encourage 'sweatshops' and child labor practices. The unfortunate thing is that most protestors oppose the WTO, but they should be all for it. For a nation to belong it has to open it's borders and follow fair labor and trade laws. It is these laws that will stop child labor and sweatshops. Without the WTO, countries are free to do what they will.

This is not very precise and inclusive but I hope it sheds a little light on the two organizations and their practices and the protests against them!

05-03-2001, 05:50 PM	#22
Moridin Fzoul Chembryl Join Date: March 1, 2001 Location: Minneapolis, MN Posts: 1,735	Just a little info on the IMF and WTO and what people are protesting for The IMF is an orginization conceived after WWII to 'stabalize' world economies. The basics of it are that any country can 'apply' for a loan from the IMF in pretty much any currency (USD, Francs, Pounds....). Each country keeps a store of their currency at the IMF for transfer of these loans. The countries can then use this money for various things (there are limits established in each case by the IMF). They can pay off debts (debt for imports), make country improvements, establish health orginizations (hospitals, traveling doctors....) or a miriad of other things. They have to payback this loan over time and it is usually without or with very little interest. The major protest agianst the IMF is for the foregiveness of Billions of dollars in loans to third world countries. The protestors feels two things 1) that these should not have been loans, but rather 'aid' to the country and 2) the restrictions that the IMF puts on the use of the money is unfair and unjust. IMHO the IMF should never even have lent this money in the first place. The majority of these loans are 'swallowed' up by the government of the country and are never used for their true purpose. The money should be paid back or else the countries that put up the money for the loans have to take it as a write-off and that is unfair to the taxpayers of those countries. As for the WTO. It is an organization that 'controls' trade around the world. There are a couple of key points to the WTO. First if you are a member you have to treat all other members with the same 'trade restrictions and regulations'. What this means is that if you put a tariff on one countries imports it has to be placed on ALL countries imports. The goal of the WTO is to basically allow the free flow of goods and services across countries borders. An interesting thing from the WTO is the most favored nation status. The people in the US probably have heard that China has been given 'most favored nation' status. What this means is that although China does not belong to the WTO, the US will drop its trade restrictions down to the levels granted to WTO members. I.e. there is a tariff on sugar imported into the US. For WTO members it is something like 100% tax and for non WTO members it is something like 200% (rough numbers) so with MFN status China can export sugar to the US with only a 100% tariff. The major protest against the WTO is that 'free trade' will make industrial countries lose major corporations and jobs to overseas 'cheap labor'. Also, 'free trade' will promote and encourage 'sweatshops' and child labor practices. The unfortunate thing is that most protestors oppose the WTO, but they should be all for it. For a nation to belong it has to open it's borders and follow fair labor and trade laws. It is these laws that will stop child labor and sweatshops. Without the WTO, countries are free to do what they will. This is not very precise and inclusive but I hope it sheds a little light on the two organizations and their practices and the protests against them!