Ex-IMF leader Dominique Strauss-Kahn has been released from jail
Saturday, 21 May 2011 06:58


Court in Manhattan agreed to grant temporary freedom of ex-head of IMF Dominique Strauss-Kahn, for a bail of $ 1 million and $ 5 million in guarantees. Grand jury trial in New York charged him with seven counts, four counts of sexual harassment against her maid, and the rest - with attempted rape, unlawful imprisonment and violent acts.

Dominique Strauss-Kahn will remain under house arrest in an apartment in Manhattan until June 6, before trial, he will wear an electronic bracelet.

Dominique Strauss-Kahn, known in Russia, especially its first initiative in the post of IMF, when he proposed to add a voice to developing countries on the board of directors of the Fund at the expense of Russia and the EU and the U.S., Strauss-Kahn did not dare to touch.

Dominique Gaston André Strauss-Kahn was born on April 25, 1949 in Neuilly-sur-Seine, France - is a French politician, economist, member of the Socialist Party. Professor at Paris Institute of Political Studies and the Graduate School of Commercial Studies. Former Minister of Industry (1991-1993) and Minister of Economy, Finance and Industry (1997-1999) in the office of Lionel Jospin.

In July 2007, President Nicolas Sarkozy of France nominated Mr. Strauss-Kahn for the  Managing Director of International Monetary Fund. In the media, this initiative has been linked with a desire to weaken Sarkozy SPF - the main opposition political party - after the departure of the French policy of one of its leaders. On July 10, 2007 the Ministers of Economy and Finance of European Union summit in Brussels decided to put Strauss-Kahn as the single candidate from the European Union to head of  IMF. By tradition, this post is representative of Europe. On September 28, 2007, Strauss-Kahn was elected director of the IMF, where he worked until May 18, 2011, when he resigned after his arrest on May 14 in New York on charges of raping a maid at the hotel.

By studying the activity of Strauss-Kahn as Director of the IMF, we should note a number of his initiatives, which had never before showed from members of the IMF. Under the leadership of Dominique Strauss-Kahn, and as a result of the global economic crisis, the IMF has become more influential - acting as a global financial management body. Strauss-Kahn is pressing Europe to the path of reform. As said Strauss-Kahn to a journalist from the German magazine "Der Spiegel": "The money is a medicine for mankind. The crisis has made everyone to look at things from a new perspective. Now the IMF is preparing for annual meeting on Oct. 8. Will he be able to meet the expectations and whether it can support the new world economic order and supervise the banking world. You have to imagine that the IMF - a doctor, but the countries are patients and  countries must change their habits if they want to recover. Otherwise it will not work. The IMF warned the world about the collapse and about the U.S. real estate bubble and its aftermath, but "politicians do not want to hear bad news." And when the autumn 2008 crisis began, as predicted, the old world - Europe, which is always half thinks before making a decision - too long to respond. It was a time when the world laid the foundation for a new order. Countries such as China and India, become and should become increasingly important. "

On April 3, 2011 at the annual meeting of IMF and World Bank, the Managing Director Dominique Strauss-Kahn made a conceptual hour and a half speech, which was a bombshell. In it he challenged the existing global political and economic system, stating that the "Washington Consensus" with its simplistic economic ideas and recipes collapsed during the global economic crisis and left behind.

According to Strauss-Kahn, should weaken U.S. influence in the new world order, he pointed out that it was the U.S. reacted to the crisis of 2008 without taking into account the long-term prospects. In his opinion, a much greater influence must find G-20 coalition of the strongest economies, the center of power in the new world, as reported by Strauss-Kahn, namely the G-20 provided the IMF's 850 billion U.S. dollars, and gave the mission to resolve the crisis, which helped to avoid a larger wave of global crisis.

According to Strauss-Kahn, the IMF should become an administrative unit for the G-20, a body that is trying to find solutions to global and national issues, and offers plans and creates values. In the end, we are focused on much more than just a regular financial and economic policy. Strauss-Kahn has proposed a completely revolutionary idea for the IMF reform of global financial order, where countries such as India and China can play an increasing role.

According to Strauss-Kahn, Europe is too slow and fragmented to compete in a world of rapidly growing countries like India and China, the United States itself, torn between the Republican past and future authoritarian, characterized him as "narcissistic."

Strauss-Kahn repeatedly spoke enthusiastically about China, Asia, dynamism and speed. According to Strauss-Kahn, China is a country of just what he needed, the efficiency of the power system in China is much more preferable ragged republicanism "narcissistic" in the United States.

According to Strauss-Kahn, the fundamental principles of Western economics embodied in the "Washington Consensus" were unsustainable and even dangerous. The desire of each state to ensure a minimum budget deficits, high rates of economic growth, free and uncontrolled state of the financial market and the liberal (ie, lower) taxes - all led to what the world economic crisis became inevitable.

Strauss-Kahn called on to create a global economy in which risk is much lower, and the uncertainty of the financial sector will be regulated by the state, such as is happening in China. As said Strauss-Kahn said: "... before the crisis were all confident they know how to manage economic systems. There was the "Washington Consensus", which is formulated very specific rules for monetary and fiscal policies and promised that deregulation will stimulate economic growth. However, low inflation, high economic growth, too loose and unruly financial markets do not guarantee any positive effects. "Washington Consensus" with its simplistic economic ideas and recipes collapsed during the global economic crisis and left behind". Financial Globalization, according to Strauss-Kahn, increased inequality, and it became one of the secret springs of the crisis. Therefore, in the longer term sustainability growth is associated with a more equitable distribution of income. The world needs a new kind of globalization, a fairer globalization. Globalization with a human face. The benefits of economic growth must be widely distributed, and not simply attributable to a handful of privileged people.

But now, after the arrest of Mr. Strauss-Kahn and his departure from the IMF, it is unknown what principles will manifest a new head of IMF.

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