We should close down the IMF

International Monetary Fund Director Dominique Strauss-Kahn is out after being charged with sexual assault against a hotel maid in New York. Unfortunately, many members of the world’s governing elite stand ready to take his place. Who should succeed Strauss-Kahn — a European or someone from the developing world? If the criterion is the welfare of ordinary people, the answer is simple: No one should succeed him. The IMF (along with allied agencies such as the World Bank) should be abolished. It does not improve most people’s lives, but rather imposes corporatist “neoliberalism” on troubled countries and suppresses the emergence of free markets. The IMF is the centerpiece of Keynes’ postwar Bretton Woods scheme, designed to coordinate central banking worldwide and enable the economic planners in the United States and its closest allies to shape the world economy. When the system of fixed exchange rates ended in 1971, the IMF assumed a new mission: to be 9-1-1 for profligate, debt-ridden governments that couldn’t repay their loans to Western banks or buy enough exports to keep the Western economies humming.The U.S. government forces American taxpayers to provide about 17 percent of the IMF’s $340 billion slush fund. Treasury Secretary Timothy Geithner is the U.S. member of the board of governors, with Federal Reserve Chairman Ben Bernanke the alternate governor. That should be enough to establish that the IMF’s agenda is not free markets. The agency claims to help troubled countries by monitoring the world economy, providing technical advice and lending money to governments that can’t pay their debts. Its record is dismal.The IMF has been bad at foreseeing crises. But why would bureaucrats living off the taxpayers, with no personal capital at risk, be expected to spot economic trouble? Bureaucrats can’t know what they need to know because the crucial knowledge doesn’t exist as easily accessible data.The promise of “technical assistance” is a joke because economies aren’t machines but networks of human activity. The IMF’s advice — commonly to raise taxes — is usually counterproductive, but since it often carries the “free market” label, it creates public resentment against real market reform.Even when it gives proper advice, say, to abolish price controls on food, the failure of the government to remove other interference with the market — licensing, franchises, patents and so on — can impose hardship on already suffering people. The “free market” then is blamed. Food riots occurred some years ago in Egypt under just such circumstances, and as a result market reforms are widely distrusted there.IMF loans seem altruistic, but in fact they bail out rulers from the consequences of their exploitative schemes — sparing them the necessity of radical change, such as land reform and free banking — and their creditors — Wall Street banks typically. American farmers and other exporters have lobbied for increased U.S. contributions to the IMF in the belief that more loans to failing countries mean more sales abroad. If the loans are repaid, the money comes out of the hides of poor taxpayers in the developing world.The IMF emphasizes that loans always come with “conditionality,” but that’s small comfort. The deepest violations of individual liberty and market principles are left untouched. Real markets require individual liberty, free banking, zero legal barriers to entrepreneurship and property rights for ordinary people. Markets are not free when large tracts of land are controlled by a feudal elite, leaving most people little choice but to take whatever is given. Their acceptance may represent the “best available option,” but if their choice set has been artificially constricted, that’s not saying much.For decades the IMF has fostered long-term dependency, perpetual indebtedness, moral hazard and politicization, while sullying true market reform and forestalling revolutionary liberal change. The solution is not for the IMF to impose free markets, even if it had the will or the ability. That would smack of imperialism and, writes former World Bank economist William Easterly, would have “patronizing echoes of the white man’s burden.”The IMF should be scrapped and the people suffering under kleptocracy left to discover for themselves the requirements for improving their own lives. How much more “help” from the West can they stand?Sheldon Richman is senior fellow at The Future of Freedom Foundation (www.fff.org).

Latest News

Liane McGhee

Liane McGhee
Liane McGhee
Liane McGhee

Liane McGhee, a woman defined by her strength of will, generosity, and unwavering devotion to her family, passed away leaving a legacy of love and cherished memories.

Born Liane Victoria Conklin on May 27, 1957, in Sharon, CT, she grew up on Fish Street in Millerton, a place that remained close to her heart throughout her life. A proud graduate of the Webutuck High School Class of 1975, Liane soon began the most significant chapter of her life when she married Bill McGhee on August 7, 1976. Together, they built a life centered on family and shared values.

Keep ReadingShow less
‘Women Laughing’ celebrates New Yorker cartoonists

Ten New Yorker cartoonists gather around a table in a scene from “Women Laughing.”

Eric Korenman

There is something deceptively simple about a New Yorker cartoon. A few lines, a handful of words — usually fewer than a dozen — and suddenly an entire worldview has been distilled into a single panel.

There is also something delightfully subversive about watching a room full of women sit around a table drawing them. Not necessarily because it seems unusual now — thankfully — but because “Women Laughing,” screening May 9 at The Moviehouse in Millerton, reminds us that for much of The New Yorker’s history, such a gathering would have been nearly impossible to imagine.

Keep ReadingShow less

By any other name: becoming Lena Hall

By any other name: becoming Lena Hall

In “Your Friends and Neighbors,” Lena Hall’s character is also a musician.

Courtesy Apple TV
At a certain point you stop asking who people want you to be and start figuring out who you already are.
Lena Hall

There is a moment in conversation with actress and musician Lena Hall when the question of identity lands with unusual force.

“Well,” she said, pausing to consider it, “who am I really?”

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

Remembering Todd Snider at The Colonial Theatre

“A Love Letter to Handsome John” screens at The Colonial Theatre on May 8.

Provided

Fans of the late singer-songwriter Todd Snider will have a rare opportunity to gather in celebration of his life and music when “A Love Letter to Handsome John,” a documentary by Otis Gibbs, screens for one night only at The Colonial Theatre in North Canaan on Friday, May 8.

Presented by Wilder House Berkshires and The Colonial Theatre, the 54-minute film began as a tribute to Snider’s friend and mentor, folk legend John Prine. Instead, following Snider’s death last November at age 59, it became something more intimate: a portrait of the alt-country pioneer during the final year of his life.

Keep ReadingShow less
Sharon Playhouse debuts new logoahead of 2026 season

New Sharon Playhouse logo designed by Christina D’Angelo.

Provided

The Sharon Playhouse has unveiled a new brand identity for its 2026 season, reimagining its logo around the silhouette of the historic barn that has long defined the theater.

Sharon Playhouse leadership — Carl Andress, Megan Flanagan and Michael Baldwin — revealed the new logo and website ahead of the 2026 season. The change reflects leadership’s desire to embrace both the Playhouse’s history and future, capturing its nostalgia while reinventing its image.

Keep ReadingShow less

A Tangled First Foray to New York in 2026

A Tangled First Foray to New York in 2026

Gary Dodson demonstrated the two-handed switch rod cast on the Schoharie Creek on April 18. The author failed to learn said cast.

Patrick L. Sullivan

The last time I tried fishing in the Catskills, in the fall of 2025, I had to stop pretty abruptly when it became apparent my hip was not going to cooperate.

So it was with considerable trepidation that I waded across a stretch of the “Little Esopus” that turned out to be a little bit deeper and a tad more robust than I thought.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.