The International Monetary Fund (IMF) and the World Bank finished their annual meetings in Prague, Czech Republic a day early Wednesday following protests by approximately 5,000 demonstrators against economic globalization.

Protestors, mostly from Europe and representing a wide array of causes, trapped delegates inside a downtown convention center for six hours Tuesday by blocking exit routes.

Although most demonstrators were peaceful, some threw Molotov cocktails and cobblestones at police in an effort to disrupt the meeting. Police responded with tear gas. Tuesday night, a group of 200 people went through the streets, breaking bank windows and damaging a McDonald’s and a KFC. At least 69 people were hurt and 44 were hospitalized, including 34 police officers.

The Prague demonstration was the latest among several recent protests held at meetings involving two or more of the IMF, World Bank, and World Trade Organization (WTO).

Critics of the three organizations charge that they encourage developing nations to permit damage to the environment and exploitation of workers in pursuit of the ability to trade on the same level as industrialized nations, in addition to manipulating those countries’ economic policies.

“Globalization is the decline in policy barriers in international trade,” said Calvin economics and business professor John Tiemstra. “There’s a great deal more capital mobility and a lot more international communication, because technology has improved.”

Those not in favor of globalization also believe it perpetuates economic disparities between rich and poor nations.

Tiemstra said, “Critics say the IMF is trying to run the economic policies of the small countries for the benefit of the big countries.”

“Those of us who came to Prague are saying it is time for these organizations to start putting people ahead of money and capital,” said Olivier de Marcellus, head of the Geneva-based Global Action coalition. “We want them to live up to their responsibilities or go out of business” (The Washington Post, Sept. 27, 2000).

Supporters of the World Bank and the IMF contend that they are essential to promoting economic development and preventing international financial crises.

However, other speakers at the summit acknowledged that the IMF and the World Bank must find more valuable ways to help billions of people who are not benefiting from globalization.

“We live in a world scarred by inequality,” said World Bank President James D. Wolfensohn. “Something is wrong when the richest 20 percent of the global population receive more than 80 percent of the global income . . . and when 2.8 billion people still live on less than $2 a day” (The Washington Post, Sept. 27, 2000).

In other
World...