IMF boss in scandal

This video says about itself:

The Paul Wolfowitz scandal raised questions about the World Bank’s relevance.

The video with Part 2 of that story is here.

From the BBC:

IMF to investigate its director

The International Monetary Fund (IMF) is investigating whether its French director abused his power in an alleged relationship with a subordinate.

The IMF said the inquiry was instigated by a long-serving governing board member, Shakour Shaalan of Egypt.

In a statement Mr Strauss-Khan said he was co-operating with the inquiry but denied abusing his power, according to Reuters news agency.

It comes as the world grapples with the worst financial crisis for decades.

The investigation is believed to centre on whether Mr Strauss-Kahn had a relationship with Piroska Nagy, until recently a senior IMF official.

It is to examine whether she got a larger severance package than would otherwise have been expected when she left the organisation in August.

The investigation is also looking at whether she was put under pressure to leave her job.

The IMF is currently receiving an increased number of requests for help from countries seeking to ease the effects of the global financial crisis.

The International Monetary Fund has a history of pressuring poor countries for allegedly spending too much on poor people, education, etc; a history of pressuring them to adapt Friedmanite-Thatcherite-Reaganite economic policies. Shouting to them: Privatize! Privatize!!. Policies which contributed greatly to the present economic crisis.

If the accusations against Mr Strauss-Kahn prove to be true, then the scandal of US boss of the World Bank Paul Wolfowitz comes to mind. Wolfowitz, who unethically promoted the career of his (by now ex-)girlfriend. If both top bankers abused their power, then this is a telling comment on the Western preachers of the Friedmanite-Thatcherite-Reaganite gospel to the Third World. A comment both on the “value” of that gospel and on the character of its preachers.

How the World Bank Let ‘Deal Making’ Torch the Rainforests: here.