The International Monetary Fund along with the World Bank have received a lot of criticism in recent times because their policy prescriptions have had the opposite result in a lot of cases. Their worst mistakes came during the Asian Crisis in the late 1990s where their counter-cyclical policies resulted in a lot of suffering and misery for the affected country’s citizens. Now the criticism has come from a wholly unexpected insider who recently resigned. The former IMF official who worked for 20 years in the organization has revealed IMF to be ineffectual and failing to point out the massive economic crises facing Europe. One of the reasons is that IMF has always been run by European politicians and has a massive bias built in. Peter Doyle calls the current chief of IMG Lagarde to be ineffectual and having no skills for the current position. He calls her “”Even the current incumbent is tainted, as neither her gender, integrity or élan can make up for the fundamental illegitimacy of the selection process”.
Western Financial Institutions have taken massive hits to their reputation with scandals and frauds being revealed almost every day. Now even IMF is being taken to the cleaners and is losing its pristine reputation. Note the person who was supposed to takeover IMF, Dominique Strauss Khan has been caught in a number of sexual harassment and assault court cases.
A veteran economist at the International Monetary Fund has accused the global lender of suppressing information on difficulties in dealing with the global financial meltdown and euro zone crisis.
He said the IMF had been “playing catch-up and reactive roles in the last-ditch efforts to save” the euro zone from the “brink.” The IMF is part of a “troika” of international lenders, including the European Commission and European Central Bank, involved in rescue loans to Greece, Ireland and Portugal.
Doyle, who has worked for the IMF for 20 years, said the appointments of the Fund’s heads over the past decade “have all-too-evidently been disastrous.”
Dominique Strauss-Kahn, the former French finance minister, quit last year after he was arrested in May 2011 for alleged criminal sexual assault and attempted rape of a hotel maid, which he denied. Charges have since been dropped.