Top of the Agenda: Questions over IMF amid Strauss-Kahn Case

  • Daily News Brief

    May 16, 2011

    EXECUTIVE SUMMARY

    - Questions over IMF amid Strauss-Kahn Case
    - Egypt Police Use Force on Protestors
    - Senator Kerry Arrives in Pakistan
    - Mississippi Floodgates Opened

     

     

    Top of the Agenda: Questions over IMF amid Strauss-Kahn Case

    IMF Managing Director Dominique Strauss-Kahn agreed to undergo a forensic examination for an investigation of an alleged sexual assault (FT) on a maid at a luxury hotel in Manhattan over the weekend. Strauss-Kahn's arraignment is scheduled to be held today. Strauss-Kahn, who denies the allegations, has until now been considered a favorite for the Socialist candidate for French president in 2012. Analysts claim the embattled IMF chief (BBC) has been central in helping to stabilize the finances of struggling eurozone member states, and assert that his detention is likely to complicate the process.

    During his stewardship of the IMF, Strauss-Kahn has been widely credited with expanding the organization's resources after the financial crisis (NYT) and improving its governance. He was a prominent proponent of easing austerity measures in Greece, and his arrest has prompted fears in Athens that they may have lost a significant advocate.

    Strauss-Kahn's plight also means also means he will be unable to attend Monday's meeting of EU finance ministers in Brussels to confer over a bailout package (DeutscheWelle) for debt-stricken Portugal. However, a spokesman for the European Commission said the case should have no effect on bailout plans for troubled eurozone states.

    Analysis:

    This article from the Economist examines how the Strauss-Kahn affair changes the landscape of French politics and the politics of rescuing Greece's economy.

    This editorial for the Wall Street Journal discusses the political implications for France and the IMF.

    This article for the Financial Times asserts that the next managing director for the IMF should be a European, given the continent's prominence in the fund's current priorities.

     

     

    MIDDLE EAST: Egypt Police Use Force on Protestors

    Using rubber bullets, tear gas, and live ammunition, Egyptian security forces clashed with pro-Palestine demonstrators (al-Jazeera) outside the Israeli embassy in Cairo. More than 350 people were injured in the protest, organized on the anniversary of Israel's independence in 1948.

    With envoy George Mitchell's departure, U.S. policy toward the Israeli-Palestinian conflict changes, from the quest for an end of the conflict to the search for a strategy to manage the current crisis, says CFR's Robert Danin.

    Israel: Israeli troops shot at hundreds of Palestinians trying to force their way across on the border from Syria, Lebanon, and Gaza. The confrontations, which killed several people, were coordinated to mark the anniversary of Israel's independence (NYT).

     

     

    PACIFIC RIM: China Allows Wife to Visit Ai Weiwei

    Chinese authorities permitted dissident artist Ai Weiwei (WashPost) to see his wife at an undisclosed location in Beijing on Sunday. It is the first contact Ai has had with family or friends since police arrested him six weeks ago.

    Japan: Japanese authorities vowed to shut down reactors at the Fukushima nuclear power plant (VOA) by the end of the year. The timetable is consistent with a plan the plant's operator announced one month ago, but since then it has become clear that the facility suffered worse damage than previously thought.

     

     

    SOUTH AND CENTRAL ASIA: Senator Kerry Arrives in Pakistan

    U.S. Senator John Kerry is set to have high-level meetings with Pakistani officials after arriving on Sunday night. Analysts say Kerry will likely issue demands for Pakistan (WSJ) to increase counterterrorism efforts if it wants to continue to receive billions of dollars in U.S. aid.

    Pakistan's stability is of great consequence to regional and international security. Examine the roots of its challenges, what it means for the region and the world, and explore some plausible futures for the country in CFR's Crisis Guide: Pakistan.

    Pakistan: Gunmen on motorcycles shot and killed a Saudi diplomat (Reuters), Hassan al-Qahtani, in Karachi. Al-Qaeda, who has waged a campaign to overthrow the Saudi royal family, claimed responsibility for the attack.

    Pakistan has emerged as a terrorist sanctuary for some of the world's most violent groups, including al-Qaeda, the Taliban, and homegrown militants, which threaten the stability of Pakistan as well as the region.

     

     

    AFRICA: Haroun Victory Rejected Due to War Crimes in Darfur

    South Sudan's ruling party rejected the victory of Ahmad Haroun in gubernatorial elections in the country's central state of South Kordofan. Haroun is wanted by the International Criminal Court on charges of war crimes allegedly committed in Darfur (Sudan Tribune).

     

     

    AMERICAS: Mississippi Floodgates Opened

    In an effort to protect large cities along the Mississippi River, the army corps of engineers opened floodgates in Louisiana (BBC) that will inundate up to three thousand square miles of land and potentially affect some twenty-five thousand residents. It is the first time in forty years the level of the Mississippi has required such action.

    United States: The United States is set to hit its debt ceiling (FT) on Monday amid new warnings from Treasury that if Congress does not quickly raise the national debt limit to avoid a default, investors will punish the country and further damage its fiscal position.

    As the U.S. approaches the deadline to raise its debt limit, economists warn of a fiscal crisis and steeply higher borrowing costs for U.S. businesses and homeowners.

     

     

    EUROPE: Belarus Opposition Candidate Jailed for Five Years

    Andrei Sannikov (Independent), a leading political opponent of Belarusian president Alexander Lukashenko, was sentenced to five years in prison for his part in protests after elections last December.

     

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