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Standing on the corner of 19th and G Street, just blocks from the White House, the International Monetary Fund looks no different from those other temples of capitalism — the World Bank and the Inter-American Development Bank — that make their home in our nation’s capital. On a given morning, it’s not uncommon to see protesters outside the IMF’s hulking offices, railing against its policy of imposing a draconian, free-market agenda on developing nations which, in their desperation, often have little choice but to come to the fund for help.
As we’re quickly learning, in the aftermath of the arrest of its ex-leader, Dominique Strauss-Kahn, the culture inside the IMF is almost as toxic as the bitter economic poison doled out by the organization itself. The harassment-plagued tenure of DSK, as he was known, was just the tip of a Titanic-sized iceberg. As the New York Times reports, his IMF had almost no safeguards against the kind of harassment rampant in a place filled with domineering males. Female IMF employees avoided certain types of dress to ward off unwanted attention, but still found themselves faced with all forms of harassment. “It’s sort of like ‘Pirates of the Caribbean’; the rules are more like guidelines,” was the way Carmen Reinhardt, a highly respected economist who served as a director at the IMF, described the place. As TomDispatch regular Rebecca Solnit makes clear, the IMF’s recklessness and disregard for the wellbeing of others reflects the organization’s approach to the outside world, a history of using economic shock therapy on nations around the world with disastrous results. Andy Kroll
Worlds Collide in a Luxury Suite
How can I tell a story we already know too well? Her name was Africa. His was France. He colonized her, exploited her, silenced her, and even decades after it was supposed to have ended, still acted with a high hand in resolving her affairs in places like Côte d’Ivoire, a name she had been given because of her export products, not her own identity.
Her name was Asia. His was Europe. Her name was silence. His was power. Her name was poverty. His was wealth. Her name was Her, but what was hers? His name was His, and he presumed everything was his, including her, and he thought he could take her without asking and without consequences. It was a very old story, though its outcome had been changing a little in recent decades. And this time around the consequences are shaking a lot of foundations, all of which clearly needed shaking.
Who would ever write a fable as obvious, as heavy-handed as the story we’ve just been given? The extraordinarily powerful head of the International Monetary Fund (IMF), a global organization that has created mass poverty and economic injustice, allegedly assaulted a hotel maid, an immigrant from Africa, in a hotel’s luxury suite in New York City.
Worlds have collided. In an earlier era, her word would have been worthless against his and she might not have filed charges, or the police might not have followed through and yanked Dominique Strauss-Kahn off the plane to Paris at the last moment. But she did, and they did, and now he’s in custody, and the economy of Europe has been dealt a blow, and French politics have been upended, and that nation is reeling and soul-searching.
What were they thinking, these men who decided to give him this singular position of power, despite all the stories and evidence of such viciousness? What was he thinking when he decided he could get away with it? Did he think he was in France, where apparently he did get away with it? Only now is the young woman who says he assaulted her in 2002 pressing charges — her own politician mother talked her out of it, and she worried about the impact it could have on her journalistic career (while her mother was apparently worrying more about his career).
And the Guardian reports that these stories “have added weight to claims by Piroska Nagy, a Hungarian-born economist, that the fund’s director engaged in sustained harassment when she was working at the IMF that left her feeling she had little choice but to agree to sleep with him at the World Economic Forum in Davos in January 2008. She alleged he persistently called and emailed on the pretext of asking questions about [her expertise,] Ghana’s economy, but then used sexual language and asked her out.”
In some accounts, the woman Strauss-Kahn is charged with assaulting in New York is from Ghana, in others a Muslim from nearby Guinea. “Ghana — Prisoner of the IMF” ran a headline in 2001 by the usually mild-mannered BBC. Its report documented the way the IMF’s policies had destroyed that rice-growing nation’s food security, opening it up to cheap imported U.S. rice, and plunging the country’s majority into dire poverty. Everything became a commodity for which you had to pay, from using a toilet to getting a bucket of water, and many could not pay. Perhaps it would be too perfect if she was a refugee from the IMF’s policies in Ghana. Guinea, on the other hand, liberated itself from the IMF management thanks to the discovery of major oil reserves, but remains a country of severe corruption and economic disparity.
Pimping for the Global North
There’s an axiom evolutionary biologists used to like: “ontogeny recapitulates phylogeny,” or the development of the embryonic individual repeats that of its species’ evolution. Does the ontogeny of this alleged assault echo the phylogeny of the International Monetary Fund? After all, the organization was founded late in World War II as part of the notorious Bretton Woods conference that would impose American economic visions on the rest of the world.
The IMF was meant to be a lending institution to help countries develop, but by the 1980s it had become an organization with an ideology — free trade and free-market fundamentalism. It used its loans to gain enormous power over the economies and policies of nations throughout the global South.
However, if the IMF gained power throughout the 1990s, it began losing that power in the twenty-first century, thanks to powerful popular resistance to the economic policies it embodied and the economic collapse such policies produced. Strauss-Kahn was brought in to salvage the wreckage of an organization that, in 2008, had to sell off its gold reserves and reinvent its mission.
Her name was Africa. His name was IMF. He set her up to be pillaged, to go without health care, to starve. He laid waste to her to enrich his friends. Her name was Global South. His name was Washington Consensus. But his winning streak was running out and her star was rising.
It was the IMF that created the economic conditions that destroyed the Argentinian economy by 2001, and it was the revolt against the IMF (among other neoliberal forces) that prompted Latin America’s rebirth over the past decade. Whatever you think of Hugo Chavez, it was loans from oil-rich Venezuela that allowed Argentina to pay off its IMF loans early so that it could set its own saner economic policies.
The IMF was a predatory force, opening developing countries up to economic assaults from the wealthy North and powerful transnational corporations. It was a pimp. Maybe it still is. But since the Seattle anti-corporate demonstrations of 1999 set a global movement alight, there has been a revolt against it, and those forces have won in Latin America, changing the framework of all economic debates to come and enriching our imaginations when it comes to economies and possibilities.
Today, the IMF is a mess, the World Trade Organization largely sidelined, NAFTA almost universally reviled, the Free Trade Area of the Americas cancelled (though bilateral free-trade agreements continue), and much of the world has learned a great deal from the decade’s crash course in economic policy.
Strangers on a Train
The New York Times reported it this way: “As the impact of Mr. Strauss-Kahn’s predicament hit home, others, including some in the news media, began to reveal accounts, long suppressed or anonymous, of what they called Mr. Strauss-Kahn’s previously predatory behavior toward women and his aggressive sexual pursuit of them, from students and journalists to subordinates.”
In other words, he created an atmosphere that was uncomfortable or dangerous for women, which would be one thing if he were working in, say, a small office. But that a man who controls some part of the fate of the world apparently devoted his energies to generating fear, misery, and injustice around him says something about the shape of our world and the values of the nations and institutions that tolerated his behavior and that of men like him.
The United States has not been short on sex scandals of late, and they reek of the same arrogance, but they were at least consensual (as far as we know). The head of the IMF is charged with sexual assault. If that term confuses you take out the word “sexual” and just focus on “assault,” on violence, on the refusal to treat someone as a human being, on the denial of the most basic of human rights, the right to bodily integrity and corporeal safety. “The rights of man” was one of the great phrases of the French Revolution, but it’s always been questionable whether it included the rights of women.
The United States has a hundred million flaws, but I am proud that the police believed this woman and that she will have her day in court. I am gratified this time not to be in a country which has decided that the career of a powerful man or the fate of an international institution matters more than this woman and her rights and wellbeing. This is what we mean by democracy: that everyone has a voice, that no one gets away with things just because of their wealth, power, race, or gender.
Two days before Strauss-Kahn allegedly emerged from that hotel bathroom naked, there was a big demonstration in New York City. “Make Wall Street Pay” was the theme and union workers, radicals, the unemployed, and more — 20,000 people — gathered to protest the economic assault in this country that is creating such suffering and deprivation for the many — and obscene wealth for the few.
I attended. On the crowded subway car back to Brooklyn afterwards, the youngest of my three female companions had her bottom groped by a man about Strauss-Kahn’s age. At first, she thought he had simply bumped into her. That was before she felt her buttock being cupped and said something to me, as young women often do, tentatively, quietly, as though it were perhaps not happening or perhaps not quite a problem.
Finally, she glared at him and told him to stop. I was reminded of a moment when I was an impoverished seventeen-year-old living in Paris and some geezer grabbed my ass. It was perhaps my most American moment in France, then the land of a thousand disdainful gropers; American because I was carrying three grapefruits, a precious purchase from my small collection of funds, and I threw those grapefruits, one after another, like baseballs at the creep and had the satisfaction of watching him scuttle into the night.
His action, like so much sexual violence against women, was undoubtedly meant to be a reminder that this world was not mine, that my rights — my liberté, egalité, sororité, if you will — didn’t matter. Except that I had sent him running in a barrage of fruit. And Dominique Strauss-Kahn got pulled off a plane to answer to justice. Still, that a friend of mine got groped on her way back from a march about justice makes it clear how much there still is to be done.
The Poor Starve, While the Rich Eat Their Words
What makes the sex scandal that broke open last week so resonant is the way the alleged assailant and victim model larger relationships around the world, starting with the IMF’s assault on the poor. That assault is part of the great class war of our era, in which the rich and their proxies in government have endeavored to aggrandize their holdings at the expense of the rest of us. Poor countries in the developing world paid first, but the rest of us are paying now, as those policies and the suffering they impose come home to roost via right-wing economics that savages unions, education systems, the environment, and programs for the poor, disabled, and elderly in the name of privatization, free markets, and tax cuts.
In one of the more remarkable apologies of our era, Bill Clinton — who had his own sex scandal once upon a time — told the United Nations on World Food Day in October 2008, as the global economy was melting down: “We need the World Bank, the IMF, all the big foundations, and all the governments to admit that, for 30 years, we all blew it, including me when I was President. We were wrong to believe that food was like some other product in international trade, and we all have to go back to a more responsible and sustainable form of agriculture.”
He said it even more bluntly last year: “Since 1981, the United States has followed a policy, until the last year or so when we started rethinking it, that we rich countries that produce a lot of food should sell it to poor countries and relieve them of the burden of producing their own food, so, thank goodness, they can leap directly into the industrial era. It has not worked. It may have been good for some of my farmers in Arkansas, but it has not worked. It was a mistake. It was a mistake that I was a party to. I am not pointing the finger at anybody. I did that. I have to live every day with the consequences of the lost capacity to produce a rice crop in Haiti to feed those people, because of what I did.”
Clinton’s admissions were on a level with former Federal Reserve Chairman Alan Greenspan’s 2008 admission that the premise of his economic politics was wrong. The former policies and those of the IMF, World Bank, and free-trade fundamentalists had created poverty, suffering, hunger, and death. We have learned, most of us, and the world has changed remarkably since the day when those who opposed free-market fundamentalism were labeled “flat-earth advocates, protectionist trade unions, and yuppies looking for their 1960’s fix,” in the mortal words of Thomas Friedman, later eaten.
A remarkable thing happened after the devastating Haitian earthquake last year: the IMF under Strauss-Kahn planned to use the vulnerability of that country to force new loans on it with the usual terms. Activists reacted to a plan guaranteed to increase the indebtedness of a nation already crippled by the kind of neoliberal policies for which Clinton belatedly apologized. The IMF blinked, stepped back, and agreed to cancel Haiti’s existing debt to the organization. It was a remarkable victory for informed activism.
Powers of the Powerless
It looks as though a hotel maid may end the career of one of the most powerful men in the world, or rather that he will have ended it himself by discounting the rights and humanity of that worker. Pretty much the same thing happened to Meg Whitman, the former E-Bay billionaire who ran for governor of California last year. She leapt on the conservative bandwagon by attacking undocumented immigrants — until it turned out that she had herself long employed one, Nicky Diaz, as a housekeeper.
When, after nine years, it had become politically inconvenient to keep Diaz around, she fired the woman abruptly, claimed she’d never known her employee was undocumented, and refused to pay her final wages. In other words, Whitman was willing to spend $140 million on her campaign, but may have brought herself down thanks, in part, to $6,210 in unpaid wages.
Diaz said, “I felt like she was throwing me away like a piece of garbage.” The garbage had a voice, the California Nurses Union amplified it, and California was spared domination by a billionaire whose policies would have further brutalized the poor and impoverished the middle class.
The struggles for justice of an undocumented housekeeper and an immigrant hotel maid are microcosms of the great world war of our time. If Nickie Diaz and the battle over last year’s IMF loans to Haiti demonstrate anything, it’s that the outcome is uncertain. Sometimes we win the skirmishes, but the war continues. So much remains to be known about what happened in that expensive hotel suite in Manhattan last week, but what we do know is this: a genuine class war is being fought openly in our time, and last week, a so-called socialist put himself on the wrong side of it.
His name was privilege, but hers was possibility. His was the same old story, but hers was a new one about the possibility of changing a story that remains unfinished, that includes all of us, that matters so much, that we will watch, but also make and tell in the weeks, months, years, decades to come.
Rebecca Solnit is the author of 13 books, including A Paradise Built in Hell: The Extraordinary Communities That Arise in Disasters and Infinite City: A San Francisco Atlas. She is, from kindergarten to graduate school, a product of the California public education system now being decimated.
Copyright 2011 Rebecca Solnit