GLOBAL MONEY, THE GOOD LIFE, AND YOU
Understanding The Local Impact of International Financial Institutions
Welcome to the e-book! To most people, international finance and the operations of the International Monetary Fund (IMF) and the World Bank (collectively known as the Bretton Woods Institutions (BWIs)) are complex and forbidding subjects that only a few "experts" can understand. Yet the work of the IMF and the World Bank and the behavior of institutional investors and other private actors in the world of international finance have a real impact on all people, be they experts or not. This electronic handbook or "e-book" will help you gain a basic understanding of the operations of the International Monetary Fund (IMF) and the World Bank and their roles in an increasingly globalized economy.
The E-Book in Brief
The e-book is the collaborative product of seven students enrolled in my year-long seminar on international financial institutions. The seminar concentrated on two questions. First, how have the IMF and the World Bank adapted to fundamental changes in the global economy? Second, what impact have these institutions had on approaches to development and vice versa?
The e-book is divided into three parts; each part contains five sections. In Part One, we explore the origins of the concept of development and its changing meaning through the 1980s. We also describe the basic functions of the IMF and the World Bank, and explain how those institutions influenced development policy and vice versa. Part Two explores changing conceptions of development in the 1990s. There you will read about the criticisms of the BWIs and their responses. The impact of non-governmental organizations (NGOs) on development policy will also be addressed along with the latest "movement" to eradicate government corruption and promote regulatory transparency. In Part Three of the e-book, we tackle issues relating to globalization and development. We use the 1994-95 Mexican financial crisis as well as the Asian financial crisis to assess the BWIs’ viability in a rapidly changing world.
The Making of the E-Book and Its Philosophy
Fairly early in the year we decided not to produce the typical student paper, which in many cases is discarded after the course, put on a shelf to collect dust, or published in a law journal (which collects plenty of dust, too). Instead, we chose to create an integrated electronically-based product that could be shared with readers around the world.
We also wanted to avoid the common complaint that lawyers use incomprehensible legalese. So we agreed upon two style/format principles. First, we used "plain English" as much as possible, with the aim of making the e-book accessible to the lay reader, our target audience. Second, we banished conventional footnotes from the e-book and replaced them with occasional "links" in the text (usually blue in color), which give the reader access to more information on selected topics. Hardcopy references and links to other websites are also provided.
You will note that, in keeping with our efforts to be accessible to you, our readers, rather than detached and remote, we frequently use the pronoun "we" throughout the e-book. Occasionally an individual author will speak for himself or herself (as I do later in this preface)--and, indeed, each section of the e-book was written by an individual student author, rather than by the group as a whole. Still, our discussions throughout the year, and the give-and-take of seminar meetings, not to mention the collaborative learning that happens in a project of this nature, have all worked together to make this a collective undertaking. Thus our use of the first person plural here.
As to the e-book’s philosophy, our purpose is to educate, not advocate. We are convinced that the best way to cope with the demands and challenges of today’s world is to learn as much as possible about powerful and complex forces in the global arena that seem beyond our reach. The seminar’s participants have learned a great deal about international finance, development, and the BWIs. The authors now hope that their written product, in e-book form, will help others around the world understand the subject matter.
Given the educational purpose of the e-book, we agreed at the very outset to take a balanced approach to the subject matter. Each writer has tried as much as possible to incorporate both sides of an argument. This will enable you (i) to come to your own conclusions regarding the many issues raised throughout the e-book, and (ii) to monitor and, if you choose, respond in some way to developments in your community that may somehow be tied to global forces and international institutions like the IMF and the World Bank.
The Nature of the E-Book: A Disclaimer
The student authors worked very hard on their contributions. They have read voluminously in preparation for the writing phase of this project. We have had many long discussions about the topics addressed in the e-book. Each section has been subject to many edits for content and form. Everyone has carefully checked sources.
Nevertheless, you should bear in mind that the e-book is largely a student-generated product. Although they are rightfully proud of this cutting-edge project, the student authors fully understand the limits of their knowledge. So should you. Please make full use of the e-book. But please understand that we are not providing you with advice in any way via the e-book.
The E-Book’s Interactive Aspects and Its Future
The e-book is a "living" document in two ways. First, as you read the text, you will be able to click on an e-mail icon that will enable you to contact us almost instantly. We hope to receive observations from readers around the world regarding the topics of the e-book. So we encourage you to send us your stories, observations, and questions relating to development, globalization, and the BWIs. We might use the information we receive from you to refine and enrich the e-book. We have also created a message board for the e-book, which we hope will eventually help us generate discussions regarding matters of global importance.
In time, we will add more sections to the e-book. In the meantime, I hope to recruit additional students to monitor the e-book site and respond to queries from communities around the world. Over the next few months, however, students will be taking exams and leaving school for other activities. So please be patient if we don’t respond immediately to your e-mail message.
Acknowledgments
Many people have helped me bring this project to fruition. Kristen Berg, the Project Producer, is the first on my list. Put simply, this e-book would not be on line today without Kristen’s drive and ingenuity. For some time I have wanted to pursue this type of project but had no idea how to proceed. I hired Kristen as my research assistant last spring and knew almost immediately that I had found someone very special. Her organizational skills and knowledge of computers and web technology provided the backbone for our project. She has spent countless hours designing the many useful features of the e-book and converting the authors’ texts into html (or whatever the code is called). During the last phase of the project, she also took over many other administrative tasks, allowing me to concentrate on the substantive aspects of the e-book.
Although she probably would have assumed all of the non-substantive responsibilities without complaint, I persuaded her that she would need some help. We therefore hired Tim Schemmel, who expertly helped Kristen post our contributions on the web. My other research assistants, Kirsten Roth, Janet Jensen, and Eric Munoz, also helped us with fine substantive and administrative assistance. Jackie Hand, my secretary, provided critical assistance as well.
As for substance, Saladin Al-Jurf, Sandra Blanco, Ricardo Contreras, Eric Dorkin, Roman Terrill, Nicole Wendt, and James Weopking worked extremely hard to produce high quality contributions to the e-book. The subject matter of this seminar is complex and frequently overwhelming. Yet every student diligently learned the materials and approached the e-book with care and creativity. They also generously and positively reacted to my substantive editing suggestions. The e-book’s substance and style were considerably improved by the final edits of our highly skilled Copy Editor, Nancy Jones, who ably directs the College of Law’s Writing Center.
Various key administrators provided us with critical financial (and moral) support. We thank William Hines, the Dean of the College of Law, for recognizing the importance of the e-book and generously providing financial support for our endeavor. Professor Burns Weston, the Associate Dean for International & Comparative Studies, also deserves much credit for inspiring students and faculty to pursue research in the international field. Professors Michael McNulty, Associate Provost, and Stephen Arum, Associate Provost and Director of International Education Services, also encouraged us to pursue our idea and helped us finance the project.
Finally, I thank my wife, Pamela, and children, Skye, David, and Felipe, for their loving support and for gently tolerating my very long hours at work over the past few months.
Enrique R. Carrasco