Criticism of the IMF

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CRITICISM OF THE IMF

Criticismof the IMF

TheIMF, in conjunction with the World Bank and the WTO, has directed theglobal economy towards augmented environmental destruction andinequality. The structural adjustment policies of the World Bank andthe IMF have ensured that countries have to pay their debts byforcing them to cut their expenditure on essential services likehealth and education (Shimko,2013).They have also forced governments to eliminate transportation andfood subsidies in addition to the devaluation of natural currenciesto facilitate cheaper exports, freezing of wages and theprivatization of national assets. These measures have translated intoincreased poverty levels of the developing countries, which has pavedway for multinational corporations exploiting the environment and theworkers in such countries. For instance, the IMF offered Argentina aloan package which required Argentina to reduce the teachers’ anddoctors’ salaries and also cut the social security payments(Shimko,2013).Therefore, it is evident that the IMF reaps from the poor anddesperate countries.

TheIMF is an institution which has no accountability and it shelvesnumerous secrets. The tax payers fund the IMF, but on the other hand,little information is available on how it runs its affairs. In thedesigning of the loan packages, the affected communities andcountries are not involved in the process (Shimko,2013).A selected group of finance ministers and central bankers areinvolved in the making of the policies, without the assistance fromother government institutions like the environment, education andhealth departments. The IMF and the World Bank have negated anychances of independent evaluation and public scrutiny. Therefore,numerous questions are raised on whether these organizations have thebest interest of the tax payers.

Reference:

Shimko,K. L. (2013).&nbspInternationalrelations: Perspectives, controversies and readings.Boston,

MA:Wadsworth.