Global Economic Developmental Council
Policy Paper
Global Economic Developmental Council (GEDC)
Word count: 2,277
Introduction After the strikes of several financial crises, domestic economic problems in developing and developed countries are exacerbating. For developing countries, they are frustrated by the aftermath remedies prescribed by the International Monetary Fund (IMF), as they do not bring benefits as promised. To countries in earlier stage of development, launching massive national development projects are increasingly difficult due to the lack of friendly financial supports from global economic institutions. To avoid shocks on currency exchange rate, export-led developing countries are bounded to accumulate foreign reserves at high costs. For developed countries, they are offended by major developing countries who have kept their currency exchange rate low, which creates global imbalance. It is important to know that the above problems are not independent; they interlock with each other and cannot be considered separately. Therefore, an effective solution to these problems should call for joint efforts from client countries and related state actors. However, the IMF does not recognize this logic. Their subject-object approach deters effective communication between developing and developed countries, making them fail to recognize each other’s needs (Martin and Simmons, 2001). As such, major global economic institutions could not call for global collective actions, which are more effectual than unidirectional prescription suggested by dominant hegemonic countries in global economic institutions. (Stiglitz, 2003) In this paper, a new global organization called Global Economic Development Council (GEDC) would be proposed as a solution supplement the defects in the IMF. It is an independent advisory body consists of a panel of representatives from different countries and areas of expertise, providing consultation materials to other global institutions, including the IMF. A
Global Economic Developmental Council (GEDC)
Word count: 2,277
Introduction After the strikes of several financial crises, domestic economic problems in developing and developed countries are exacerbating. For developing countries, they are frustrated by the aftermath remedies prescribed by the International Monetary Fund (IMF), as they do not bring benefits as promised. To countries in earlier stage of development, launching massive national development projects are increasingly difficult due to the lack of friendly financial supports from global economic institutions. To avoid shocks on currency exchange rate, export-led developing countries are bounded to accumulate foreign reserves at high costs. For developed countries, they are offended by major developing countries who have kept their currency exchange rate low, which creates global imbalance. It is important to know that the above problems are not independent; they interlock with each other and cannot be considered separately. Therefore, an effective solution to these problems should call for joint efforts from client countries and related state actors. However, the IMF does not recognize this logic. Their subject-object approach deters effective communication between developing and developed countries, making them fail to recognize each other’s needs (Martin and Simmons, 2001). As such, major global economic institutions could not call for global collective actions, which are more effectual than unidirectional prescription suggested by dominant hegemonic countries in global economic institutions. (Stiglitz, 2003) In this paper, a new global organization called Global Economic Development Council (GEDC) would be proposed as a solution supplement the defects in the IMF. It is an independent advisory body consists of a panel of representatives from different countries and areas of expertise, providing consultation materials to other global institutions, including the IMF. A