The Importance of the CBRD

Initially, when it was first established in 1992, the Common but Differentiated Responsibilities played a vital role in determining how different countries would address climate change. The principle of the CBRD came from an idea of a ‘common heritage of mankind’, which describes a situation where all people across the world are equally responsible. However, although the principle acknowledges the equal responsibility that each country has in addressing climate change, it also acknowledges the differences that each country has in addressing these problems. Depending on economic and technical capabilities, each country may have different methods they might use to solve environmental issues. This principle is included in the United Nations Framework Convention on Climate Change (UNFCCC), being first mentioned in the 1992 UNFCCC Treaty. The treaty was ratified by all countries involved in it, and they all acknowledged a shared responsibility in addressing climate change. However, in recent years, the role of the CBRD is evolving. Some have even argued that the CBRD doesn’t have the same level of relevance in contemporary times. Continue reading

The IMF Won’t Fund Another Greek Bailout

 

The functionality of the International Monetary Fund has been a matter of debate since its inception. One of the most notable critiques of the Fund is the conditionality of its loan packages. In most cases, through structural adjustment programs, the IMF requires that a country cuts its expenditures, promotes free trade and foreign investment initiatives, and privatizes certain assets. Often times, these conditions are not feasible demands for countries to meet. It’s also worth noting that many of the countries that the IMF lends to are not likely to be able to pay the Fund back. Some economists have argued that IMF bailouts actually do more to hurt the global economy by creating moral hazard and causing more instability. Continue reading