Political Cynic comments on this unfolding Political Melodrama!
‘The Show Trial’ of Georgieva continues in this newspaper. Yet even Luce’s Bill of Attainder lost what political force, it might have had, in its last two paragraphs. But what The Hegemon, America, wants it will get! The IMF and The World Bank are the public relations defenders of Toxic Capital. Quoting the mendacious Jeffery Sachs as a ‘Progressive Economist’ followed by Stiglitz leads the reader to what conclusion?
The New Cold War with China, and numerous others, makes this reader wonder at the inexhaustible treasuries, and the political will of America, as the Afghanistan Defeat still bedevils its hegemonic self conception.
Here is the lynch-pin of this essay, after all the speculation and political temperature taking: the high placed anonymous source: ’A former division chief at the IMF’
A former division chief at the IMF said the extent of the board’s disagreements over Georgieva’s fate had already undermined her ability to lead going forward, leaving few alternatives beyond her being replaced.
“Such openly divided and at best modestly enthusiastic support for its managing director risks hobbling the institution’s effectiveness, both in terms of its policy advice and credibility of its analysis,” said the former IMF official. “Even if she weathers this storm, it will be difficult for Ms Georgieva to continue as an effective leader of the institution for much longer.”
The political melodrama continues, as Georgieva’s ‘Deviationism’ must be firmly established in the Public Mind!
Anne Krueger, a former World Bank chief economist and deputy managing director of the IMF, said the affair left her “worried about the future in general”.
“I’m worried that if indeed this is somehow permitted to pass, we will have more pressure for more governments to change more numbers in more favourable directions,” she said. “Not everybody . . .[will] give in but there are some staff or management who will, and the situation will get out of hand if it isn’t already.”
Like any effective melodrama, drawing on a Tradition that dates from Ancient Times, a member of Economic Royalty appears, as the deus ex machina:
Paul Romer, a Nobel laureate who was World Bank chief economist under Georgieva and worked with her and Djankov, said the latter’s alleged actions “should be interpreted as being done with the knowledge and at the behest of Kristalina”.