For a decade, the world monetary order has been led by the IMF, which is the lender of last resort, and the World Bank, which is there for development. But all these institutions, since their creation have failed in their mission, so, was it not time to place our trust in Crypto-currencies, especially bitcoin which comes as neutral to everyone? And which guarantees financial freedom.
At first glance, despite the well-defined roles of these Bretton Woods institutions, which is to seek macroeconomic stability for the IMF and long-term economic development for the World Bank, the global structure remains the same, a center-periphery system which only reinforces the dependence of the countries of the periphery on the countries of the center, says the developing countries to the industrialized countries according to certain theoreticians otherwise.
For Alex Gladstein, in his opinion editorial, this enriches the countries that created these institutions, which are historically the United States, the United Kingdom, France, Germany and Japan. And that creates the Gantillon effect where it is those who are closer to the ticket printing press who benefit from the money while those who are furthest away benefit from it.
So the creditor countries are getting richer to the detriment of the peripheral countries and, worse, these developing countries find themselves servicing the external debt at all times.
What is this financial freedom we are talking about here.
Financial freedom refers to the fact that a country lives independently, without having to work, or by working less and carrying out activities in accordance with its values.
So, here each country works in an autonomous way, and precisely, it is a person who will manage its finances.
Therefore, for the producers there will no longer be the intervention of several institutions
Inequalities of industrialized countries compared to the rest of the world
First of all, the inequalities stem from the influence that the developed countries have over the others and this manifests itself in the fact that the World Bank is still run by an American and that the IMF by a European.
Then, the inequalities also manifest themselves at the level of the distribution of votes where we see that the creditor countries or other powers and former colonists hold the largest part of the votes, in particular the United States which holds the largest part of the votes. With 15.6% of the Bank and 16.5% of the fund, there the constant is that they alone can oppose their veto to any major decision that requires 85%; Germany 4.21% and 5.31%. Germany 4.21% and 5.31%.
On the other hand, India with 1.4 billion inhabitants has only 3.04% of votes in the World Bank and 2.63% in the fund, less power than its former colonial master, the United Kingdom which a 3.87% at the Bank 4.03% of funds despite its 20 times larger population
Brazil and Nigeria, the largest countries in Latin America and Africa, have about the same influence as Italy, a former imperial power in decline.
Switzerland with only 8.6 million inhabitants holds 1.47% of votes at the World Bank and 1.17% of votes at the IMF: roughly the same share as Pakistan, Indonesia, Bangladesh and the Ethiopia Reunited According to Alex Gladstein’s Comparison of People’s Suffrage vs. IMF.
In fact, if we try to analyze the distribution of the world, we see that it emanates from history, and it is not only in this area, because on all levels.
So, if someone says that the countries of the south depend on the countries of the north, he will not be wrong, then another plan is needed where the countries are able to set their own destinies with total financial freedom.
this is why the Crypto-currencies which guarantee this could intervene because if we remain in this regime the hands which give will always remain above the hands which receive.
How are Crypto-currencies a solution?
We already know that bitcoin guarantees financial freedom; the transparent nature and its decentralized nature will make it possible to change the paradigm despite the various criticisms.
Besides, no one knew 25 years ago what incredible things the internet would be capable of, so let’s patiently wait for what bitcoin will become in the next 25 years.
But what is certain is that currently it is estimated that a farmer in sub-Saharan Africa receives 1% of the price of coffee on the world market. Imagine the years when that same bitcoin, farmer will allow him to trade independently without so many middlemen thanks to the decentralized nature of Cryptocurrencies.
By Barakana Guy-Eudès