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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)


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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