IMF

A peek into the IMF machine

A couple of years ago, Liaquat Ahamed, a Washington-based fund manager turned writer, flew to Tokyo to participate in the annual meeting of the International Monetary Fund. It was a febrile moment for the global economy: the eurozone region was on the brink of a crisis, and speculation was sky-high about what the Fund should (or should not) do.

But unlike the other 12,000 delegates who typically attend such meetings, Ahamed was not lobbying for policies, cutting business deals or reporting. Instead, for a few days he observed the IMF circus as if he were an ethnographer plunged into a strange tribe – or a botanist planted in a jungle. Then he travelled to Mozambique and Ireland to watch IMF missions at work. This was not to evaluate the efficacy of IMF programmes but simply to see how the Fund’s staff interacted with each other and local officials as human beings, within the dizzy cross-cultural kaleidoscope of encounters.

The results, published this month in a monograph, Money and Tough Love: On Tour with the IMF , are not just hilarious but shrewdly provocative. These days, as I observed in last week’s column, the issue of globalisation is more emotive than ever. As Ian Goldin, the Oxford-based economist (and a former World Bank official himself) notes in The Butterfly Defect, another thought-provoking new book, “The tidal wave of globalisation that has engulfed the planet in the past two decades has brought unprecedented opportunity. But it has also brought new risks that threaten to overwhelm us.” Financial crises – of the sort the IMF was created to contain – are just one case in point.

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