Still, someone has kept his head. Obviating the Need for an IMF I'd like to expand this idea and obviate the need for an IMF altogether. Borrowers must allow foreign banks to operate within their borders and be able to purchase their domestic banks. The best way to reform a rotten financial system is to admit good, free-market bankers. Borrowers must subscribe to a new bankruptcy convention that would adopt laws similar to those in the United States and Europe.
Lenders have to know that they can seize assets in a default.
A version of this article appeared in the Washington Post on Tuesday, October 6, 1998. Click here for an index of On the Issues .