A South Korean court has rejected a lawsuit filed by a group of labour unions against the IMF for alleged policy mistakes. The unions were suing the IMF for 480 million won ($426,000) in compensation for job losses caused by austerity measures imposed by the IMF in return for the $57 billion bailout. The unions claimed the IMF had given wrong advice – including maintaining high interest rates and corporate restructuring – which had caused businesses to fail and unemployment to rise. The judge accepted the IMF‘s defence that no signatory country can hold the IMF civilly or criminally liable over its policy implementation.
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Last year BRICS' leaders agreed to launch a BRICS development bank. Whether this is considered positive depends in part what questions are being asked. Sameer Dossani of ActionAid International highlights the flaws in the World Bank and IMF, analyses whether a BRICS Bank could be different from these institutions and proposes what it should do and what it should look like.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).