Socialist FAQs. Comments? Q. Is IMF good or bad for our economy? A. It is bad for Pakistan’s economy. Not only do outside forces such as the IMF restrict the economy of a developing country such as Pakistan, they also control it. For instance, less developed economies often require bailouts and loans to prevent a Capitalism-induced collapse. They frequently turn to the IMF which is a US based agency that provides these loans. The IMF loans come with conditions such as slashing public spending, austerity measures, raising energy prices, etc. What a government can or cannot do for the economy is dictated by these loan terms. These terms create immense hardship on the population. They are at the same time, a form of neo-colonial exploitation whereby the loan is to be paid back to IMF with interest. During the colonial era, exploitation occurred by way of colonial occupation; i.e., de facto control of a territory and economy. The new colonialism, “neo-colonialism”, is led by the IMF and finance capital.
Posted on: Mon, 14 Apr 2014 06:30:00 +0000