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Big picture: Every influential organization and leader around the world (besides Trump) is telling us to Build Back Better. What are we trying to fix?
A little context: History shows how major global resets can fail poorer nations. Bretton Woods perpetuated inequality behind the veil of humanitarian activism. If the status quo changes the status quo, did the status quo really change?
Some talking points:
- Governments caused the COVID debacle, not the people. Yet, the people face the consequences.
- Governments (and international organizations), perpetrators of the broken system, want to fix it.
- Suggestions from big orgs are abstract and ambiguous, rather than tangible like term limits.
Bottom line: As we watch world leaders discuss recovery options, let’s prioritize tangible change rather than utopian fantasies.
Dig deeper → 2 min
The scoop: the IMF published a statement calling the pandemic recovery plan a ‘new Bretton Woods moment’.
What is Bretton Woods? Bretton Woods was an international conference that took place in 1944 with the goal of preventing another World War by establishing a new international monetary framework.
The legacy of Bretton Woods: Although the agreement no longer serves a purpose in the modern world, its effects are still being felt; there is more negotiation between nations both economically and politically and the global market is more interconnected than ever before.
Lessons for coronavirus, globalization:
1. Make politics people-oriented
Leaders and policy-makers of international organizations are motivated by self-interest and private sector pressure. Likewise, they propose policies that favor private interest and hurt the average worker.
2. Make international finance fair and equal
Loan conditionalities from the IMF are often attached without serious consideration for the interest of the borrowing nation or its citizens. Recommendations by the World Bank and IMF don't always resolve economic hardships for developing nations.
Bottom line: If this is a new Bretton Woods moment, perhaps we can learn a thing or two about our convoluted past of international do-good. Rather than just hit the reset button, we should consider how poverty alleviation requires more than a paycheck.
Dig deeper → 8 min