The Economist (January 21, 2012)
The concept of limited liability, which protects shareholders, “is one of the greatest wealth-creating inventions of all time.” In many places, however, companies can be set up to hide or disguise the ultimate owners. “This is of great use to wrongdoers, and a huge headache for those who pursue them.” Both the World Bank and the OECD argue that the identities of owners should be disclosed. The Economist agrees. “Anyone registering a limited company should have to declare the names of the real people who ultimately own it, wherever they are, and report any changes. Lying about this should be a crime.”
The concept of limited liability, which protects shareholders, “is one of the greatest wealth-creating inventions of all time.” In many places, however, companies can be set up to hide or disguise the ultimate owners. “This is of great use to wrongdoers, and a huge headache for those who pursue them.” Both the World Bank and the OECD argue that the identities of owners should be disclosed. The Economist agrees. “Anyone registering a limited company should have to declare the names of the real people who ultimately own it, wherever they are, and report any changes. Lying about this should be a crime.”
The Economist (May 26)
Christine Lagarde is talented, but she should not be chosen to head the International Monetary Fund. “The stitch-up, whereby the head of the IMF is a European and the head of the World Bank is an American, is a disgrace. International posts should be filled according to merit…. Europe’s monopoly of the IMF’s leadership has long been an anomaly. It is time that it ended.”
Tags: Europe, IMF, Lagarde, U.S., World Bank
New York Times (May 20)
By a long-running understanding, the International Monetary Fund (IMF) has been headed by a European and the World Bank by an American. “That tradition…may have fairly reflected the economic geography of 1946. But it does not reflect today’s world, and powerful new players like China, India and Brazil rightly resent it.” In fact, the IMF has been led by French managing directors for 36 of its 65 years, with the remainder filled by other Europeans. The departure of Dominique Strauss-Kahn provides a chance to end the clubby understanding. Going forward, the posts should be filled “on merit alone.”
Tags: IMF, Managing Director, Nationality, Selection, Strauss-Kahn, World Bank
