Date: Sun, 23 Mar 1997 19:22:21 +0100
From: Jorn Andersen <jorn.andersen-AT-vip.cybercity.dk>
Subject: Re: M-I: Albania


At 11:33 21-03-97 -0500, Rosser Jr, John Barkley wrote:
>     Of course this may represent behind covering or 
>propaganda, but yesterday's _Washington Post_ had an 
>article on Albania.  Buried deep within it was a very 
>definite statement that last year both the IMF and the 
>World Bank were strongly advising Berisha against 
>allowing or encouraging in any way the pyramid funds.  
>I think that there is some misleading scapegoating 
>going on here.  These funds were not an imperialist 
>plot, but the idiocy of a corrupt, post-Stalinist, 
>laissez-faire run wild regime.
>Barkley Rosser
>


I read an article on the WWW:
_The meaning of the Albanian Revolution_ by Alan Woods. URL is:
http://easyweb.easynet.co.uk/~socappeal/albania2.html

(actually i have only read half of it yet - it is quite longish).

In this IMHO brilliant article Alan Woods doesn't see these two as
opposites (the IMF and Berisha government) - both were very instrumental in
making these pyramid schemes blossom.
He tells the story of how the IMF in at least two instances blocked
legislation which would have at least kept these schemes within some limits
- by allowing the Albanian central bank to demand that banks (or other
enterprises enganged in banking activity) established a reserve fund, if
their activity was questionable.
Such a law existed from 1992, but was scrapped in 1994 at the direct
request of the IMF team at the Albanian central bank - in spite of protests
>from other international advisors.
What remained was supervision from the central bank, but in Feb. 1996 this
was also scrapped.
It was not until Sept. 1996 that the IMF warned the Berisha government
about the catastrophic consequenses of these schemes. At this time the
pyramid schemes had been operating for 2 or 3 years - and it was too late
formthe Berisha govenment to do much about. That is, unless they cut their
ties with their friends behind these schemes.

I think Alan Woods' arguments sound very reasonable, and that we should not
be deceived by a statement of warning from the IMF + World Bank if it was
as late as the fall of 1996. Of course they try to wash their hands.
But I would like to ask *when* this document (according to the Washington
Post) was made? You say it was last year (1996) - has it more detalied
information?


Yours

Jorn



--
Jorn Andersen

Internationale Socialister
Copenhagen, Denmark
IS-WWW: http://www2.dk-online.dk/users/is-dk/



     --- from list marxism-international-AT-lists.village.virginia.edu ---