G20: Why support the IMF?

The IMF failed to warn of the dangers posed by the US housing bubble. The G20 is wrong to give it more money and power

The G20 countries have come to agreement on a number of important steps to foster a recovery from the recession. However, since we always knew that they would come to "agreement", the substance of the deal is not entirely clear at this point.

There are two areas where the nature of the agreement seems clearest: clamping down on tax havens and increased funding for the IMF.The clampdown on tax havens is a restoration of an agenda that had been gaining momentum in the 1990s but was then derailed by the Bush administration. While outwardly committed to preventing tax fraud, the Bush administration worked to undermine any substantive measures intended to accomplish this goal.

The G20 seem to be in agreement that tax havens must be closed, with the first step being the public identification of the rogue states. This naming will be followed by sanctions if these states continue to support tax evasion.

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