The IMF’s Controversy
The International Monetary Fund periodically develops programs to "rescue" countries from debt default. However, many developing countries argue that IMF policies often hurt the poorest of the poor, and sometimes to the advantage of rich countries and global corporations.
From time to time the economic growth of developing countries finds itself on a decline due to poor government policies or outdated reforms that undermine the possible promotion of the economy. In any case the IMF (International Monetary Fund) is often described as a “heartless” moneylender which provides developing countries with the option to adopt the IMF’s agenda and policies in order to provide a “solution” for economic growth.
Although most developing countries are already facing an economic distress and in need of fundamental reforms, the IMF’s primary goal is to provide short term loans to solve the balance of payment problems that a developing countries have along with special aids and technical advice on how to solve their economic problems.
The IMF currently controls approximately 60 country's economies by offering financial assistance during a debt crisis or loans for emergency conditions. The types of loans that the IMF administrates are often very particular in their policies and are called structural adjustment policies (SAPs). SAP loans are structured to help lift an economy out their debt by cutting funds to public services such education, transportation, waste management, environmental services, health and food assistance programs. In addition, SAP loans are designed for the IMF to help control the spending and the money flow throughout the respective countries.
According to Taner Berksoy, who serves as the dean of Faculty of Economics and Administrative Sciences at Istanbul’s Okan University, in an interview with Daily News that discussed the success story of Turkey under the IMF program, was able to explain:
“So despite the fact that the IMF has been demonized for years by the public, in fact it has played an important role in Turkey’s economic success
But we need to be careful. The AKP had tremendous luck. From 2002 onward there has been a tremendous inflow of money. Everybody has grown and Turkey has grown, too. Despite implementing the IMF’s tight program, you started growing because the trend in the world was in the direction of growing. Implementing such a tight program in that type of economic weather is great luck. As the economy grew, people did not complain about the IMF program.
Turkey must be a success story for the IMF, too.
That’s correct. But let’s not also forget that at that time, there were not so many countries that were under IMF monitoring and as countries started to become better off due to world expansion, Turkey was nearly the only one to implement the IMF program. That’s a success. As of today, we are now giving the message that we no longer need the IMF. “
In my opinion, having the IMF...