By Walden Bello
This can be a brief and trenchant background of the organizations--the international financial institution, IMF, WTO, and staff of Seven--that have promoted financial globalization and that are now attempting to deal with the unmanageable. Walden Bello issues to their take place failings, visible in recurrent monetary crises, the ever widening gulf among constructing and industrialized international locations, the endurance of gross inequalities, and mass poverty. He examines new rules for reforming international fiscal administration, and argues even more basic and radical shift of path is needed.
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The crisis unfolded with frightening speed in December . Cap in hand, Argentina went to its mentor, the IMF, for a multibillion-dollar loan to meet payments on the $ billion external debt coming due. In the grip of the old orthodoxy, the Fund refused unless the government made massive cuts in public expenditure and imposed a tight money policy. The standoff continues, even while the country spirals into chaos. ‘Imperial Overstretch’ Meanwhile, on the military front, things were not looking so good for the world’s sole remaining superpower by the middle of .
Doubts have increased with the Pentagon’s insistence on building a missile defence system against potential rather than real enemies while preparing the ground for a new Cold War crusade against China. And recently, even as many traditional allies enlisted in the so-called ‘war against terror’, US unilateralism is undermining old alliances as Washington prepares the ground to invade Iraq, even against the express wishes of most members of the European Union. Loss of trust in Washington is the source of moves to create a European defence force that would operate with some independence of NATO.
First, it represents a space – both physical and temporal – for this diverse global movement to meet, to network and, quite simply, to feel and affirm itself. Second, it is a retreat during which the movement gathers its energies and charts the directions of its continuing drive to confront and roll back the processes, institutions and structures of global capitalism. For one cannot let up on the enterprise deconstructing the reigning structures. 21 Third, Porto Alegre provides a site and a space for the movement to paint, elaborate and debate the vision, values and institutions of an alternative world order.