Imf Should Not Be Allowed To Go To The Wall Just Yet (from Sunday Herald)

"What has happened is that Latin America and Asia have effectively walked away from the fund, even though they remain members."

"Meanwhile, discussions have hardly even started over IMF conditions, probably the thorniest issue of them all. These are still alive and well despite the earlier reforms, although there are signs that change might be coming. Strauss-Kahn recently stunned observers by coming out in favour of a global fiscal stimulus plan to keep America on its feet, and praised Federal Reserve chairman Ben Bernanke's aggressive interest rate cuts, all of which was a far cry from the usual IMF mantra and sounded distinctly Keynesian."

"We have to hope everyone has the sense to reach a compromise. As damaging as the years of IMF strong-arming may have been, the basic value of having an international fund to rescue currencies and stop the rot from crossing borders still stands. It is far from clear whether anything in Latin America or Asia can fulfil this role. Castro might finally be leaving office, but the IMF should not be allowed to entirely go the same way."

[Read More:Sunday Herald]