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January 31st, 2006

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08:25 pm - The IMF, legitimizing exploitation
You know I never realized that the IMF (International Monetary Fund) is so...messed.
Get this, the IMF lends out money to countries as long as these countries comply with it's list of conditions. Fair right? Ok. Now most of the countries applying for a loan are developing nations, poor already and desperate for something to lift them out of poverty.

So the IMF comes in, and what's the first thing they almost ALWAYS do?
1) Demand the government of that nation to privatize just about EVERYTHING! From healthcare to hydro, it all has to end up in the hands of the wealthy.

2) Then, liberalization of trade. The country HAS to open it's doors to the global market which then of course invites in a flood of imports from the wealthy nations which in turn competes with the local businesses, generally running them bankrupt since the corporations doing the importing are all multinational and there's no way locals can compete.

4) Then, the Central Bank of that nation has to be basically handed over to the IMF...wtf??? Now the IMF gets to decide what infrastructures in the nation needs to be built/fixed, what programs (if any is left after all that privatization) needs to be funded and how much, the government doesn't even have control over its own money anymore!!

5) Finally, the devaluation of the money. Aka, rise the prices of staples food and other basic necessities over night sometimes 3 or 4 times, but not the wages. So what costs say 5 bucks one night, by morning it's 15 bucks, yet you still have the same amount of money in your wallet.

Number 5 alone would drive any nation into poverty. So the nation complies (why?? I don't know, I mean I sure as hell wouldn't), and the IMF loans them the money, keeping a constant eye on insuring that the nation keeps up these wonderful "structural adjustment programs" as they call it. But by now, the nation's in so much poverty that all the loan is needed just to keep the population alive and breathing (if it even makes it to the people, after exchanging hands through all those politicians, I'd venture to guess very little actually goes to productive use). When the loan period ends, whatever profits the nation's made is used usually just to pay off the INTEREST on the loan much less the loan itself. So the nation has to ask for a second loan just to pay back the first loan and the cycle just keeps going.

What kind of cruel people thought up of this demented...thing?! I mean how does any of that make ANY sense in helping ANY nation get OUT of poverty??? Argh!! After studying this for just a little more than a semester I'm more frustrated than ever before at how messed up everything is. That'll be the first thing to go when I get into the United Nations. Some serious changes need to be made to the way the IMF works.
Current Mood: frustratedfrustrated
Current Music: American Idol that my roomie has on...my ears are bleeding

(8 comments | Leave a comment)


[User Picture]
Date:February 1st, 2006 03:11 am (UTC)
Who in the entire world do you think made the IMF? Th Americans, of course. They also came up with the U.N. which isn't the best organization in the world at the moment.

The idea is a great on, but the in reality not to much. Yes they do good things, BUT then they absoluteely horrid ones that negate all the good stuff that they do.
[User Picture]
Date:February 1st, 2006 05:13 am (UTC)
Ah true, the good old US of A. The UN has so many problems it's not even remotely funny. The freaking Security Council is still representative of the 5 dominant powers after WWII in 1945 and because they've got the veto, super-powers of the current day can't even join because there's no way any of the current 5 are going to agree to diffuse the powers a bit and let in more permanent members.

Stupid veto, I mean seriously, how often are 5 nations going to be in unilateral agreement on something?? Much less 5 of the strongest nations with some of the most diverse cultures and views on how the world should be run.
[User Picture]
Date:February 1st, 2006 06:01 am (UTC)
well that's the way the stupid U.S. organized it. God the half the Council aren't even up to snuff, militarily speaking.

Something has to goddamn change and soon. Everything's soo fucked up, I have no idea where to start. With the BIG stuff or the SMALL stuff which in turn causes THE BIG stuff which in turn causes the SMALL stuff. One fucking vicious cycle *sigh*

Oh and please excuse the language, i'm not usually so . . . .erm vulgar. ^_^
[User Picture]
Date:February 2nd, 2006 03:42 am (UTC)
Lol, it's ok, politics can stir passionate emotions especially since it affects all of us.
Date:February 1st, 2006 05:16 pm (UTC)
Organizations such as the IMF and the WTO are set in place to legitimize globalization and the expansion of "democracy" and capitalist markets.I agree with your criticisms;countries such as China are being exploited,but,if they were to specialize and mass produce their special commodities and GDP (communist theory,mind you),they would be able to enter the free market with securities (as is the case with China at the moment).Third-world countries are far better off with developing socialist systems of government and centralizing economic powers in order to create a foundation on which they can enter the global market with a "bargaining chip".-James
[User Picture]
Date:February 2nd, 2006 03:41 am (UTC)
But they don't have a "bargaining chip". Well, no that's not quite true, the only bargaining chip that Third World nations have is the offering of their cheap labour, which the developed nations seem to have no problems exploiting to their full potential. In the case of China, although it's true that more and more the country's entering the global market and gaining ground to playing a key role, the inequalities within the nation amongst the citizens is spreading at an alarming rate. I hate to admit it, but most of China's population is still living in poverty despite whatever development it may have gained. Until the government can stand up to the international cooperations and say enough is enough, the exploitation will continue and I doubt China's government wants to see Wal Mart and Nike pick up their businesses and leave. The same is the case with many other developing nations, even worse in most of their situations since on the global market they hardly play any role.
Date:February 2nd, 2006 11:40 pm (UTC)
lol you can't even understand the concept of property rights and how violating them in japan can get a person sued. i doubt you'll make it to the UN.
[User Picture]
Date:February 3rd, 2006 02:32 am (UTC)
*sigh* you know what, cowards that do not even have the courtesy to sign in when commenting should stay out of conversations between the big kids ok? (And don't you start bashing the previous anonymous post because I know him personally and he doesn't have an Lj account). If you're going to post on the more serious posts, then for crying out loud stay on the freaking topic at least.

You're more than welcome to debate the issue of the IMF with us in this post, but otherwise stay out. This post is about the exploitation that the IMF is putting many poverty-stricken countries through which is costing the lives of thousands if not millions of people on a daily basis, fandom has absolutely no place in here. None what-so-ever.

Do NOT degrade the importance of the lives of those people in the developing nations whom this issue affects every single day to the standard of the hormone-raging girls/boys in a fandom (not to say every person in the fandom is such in everyday life, but when they're submerged in the fandom on the internet that's what's driving them).

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