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People & Power
Turkey and the G20
People & Power looks at the role of the IMF in light of the G20 summit in London.
Last Modified: 02 Apr 2009 14:05 GMT

This week's G20 summit in London is about finding ways to improve the world's economic health.

One concrete decision has already been made: that finance for the International Monetary Fund (IMF)should be increased to help bail out countries hit by the financial crisis.

But is the IMF, a lender of last resort for ailing economies, up to the job?

Many think its loans come with too many conditions, often doing more harm than good.

Turkey has been in talks with the IMF over a loan since a previous $10bn accord expired in May last year.

In January, negotiations were brought to a close with the Turkish government refusing to sign up to the IMF's standard belt-tightening rules.

After the G20 meeting it is thought that a decision will be reached, but for Turkey the deal is proving to be hugely contentious.

People & Power investigates how Turkey is split over whether the loan will bail out their failing economy or destroy businesses already struggling from the fall-out of the previous loan.

Tax Me if You Can

In part two of this week's People & Power we look at the issue of tax evasion as one of the big items on the G20 agenda. It is estimated that worldwide over $11 trillion in assets is being hidden from tax authorities.

This is money no tax has been paid on, and money badly needed when considered that the US alone has committed $2,000bn to stave off the worst effects of the global recession. The IMF has already granted around $60bn in emergency loans to countries all over the world.

Recently a number of prominent tax havens such as Switzerland have agreed to relax their bank secrecy laws bringing them in line with standards formulated by the Organisation for Economic Co-operation and Development (OECD).

However, some are fighting back and arguing that closing down tax havens could damage the economies of a number of small nations dependant on specialised banking services for income.

Samah El-Shahat is joined in the studio by Richard Murphy of the Tax Justice Network, and from Paris by Grace Perez-Navarro of the OECD.

This episode of People & Power aired from Wednesday, April 01, 2009.

Source:
Al Jazeera
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