The IMF Help Or Hurt Essay Research — страница 3

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Eight people were killed. It was a reminder that the globalization protests in Washington aren’t simply the product of a Web-connected U.S. counterculture but of an anger that’s building around the world because of the IMF?s mistakes. The annual disbursement of fund assistance rose from an average of 6.8 billion in the first half of the decade, to 15.1 million now. This suggests that the IMF is failing and that even more countries are being forced to go to them now. The IMF?s policies are ?all head and no heart. The IMF is leeching the American capital and should have been exterminated like the parasites they are, decades ago.(4)? In the African nation of Mozambique, workers used to process the cashews grown in their own country. To protect the thriving nut processing

industry, the government put a tax on the export of raw, unprocessed cashews. In the interest of removing trade barriers, the IMF ordered the export tax removed. As a result, processing shifted to India, where children working at home shell the nuts. In Mozambique, 10,000 adults lost their factory jobs. In Haiti, the IMF blocked the government from raising the minimum wage and then demanded the privatization of profitable public companies, which generated revenue for desperately needed services. The IMF insisted that Haiti should cut government services by half, in spite of a national shortage of teachers and health care workers, a life expectancy of 49 years for men and 53 years for women, 45 percent literacy and infant mortality running at nearly 10 percent. The IMF’s

intervention in Russia has been one devastating failure after another. Within four years of its program entering into effect in 1992, the country’s national income had dropped by about one-half, a disaster worse than the U.S. Great Depression. The number of Russians in poverty rose from 2 million to 60 million. Male life expectancy fell from 65.5 years to 57. A collapse of this magnitude is historically unprecedented in the absence of war or major natural disaster. Having hewed to the IMF’s dictates, Russia has seen most of the collapsed cash economy replaced with barter, making it difficult to collect taxes. IMF demands for rapid privatization of industry led to an explosion of corruption and organized crime Debt and structural adjustment are robbing the world’s

schoolrooms. Debt forces governments to allocate huge sums of money that could be spent on education to debt repayment. Structural adjustment makes the problem worse, as the IMF demand government spending cuts and privatization measures in education. What money remains for education goes to primary schools, with education beyond elementary levels shifting to a fee-for-service basis. In Mexico, the Bank advised the government to abolish constitutionally guaranteed free education at the national university, provoking a lengthy student strike. The rich get an education. The poor get sweatshop jobs. So, what do I think? Well, the IMF is a good program. It has worked in the past and it will continue to work in the future. It has proven that is has the necessary elements to be a

successful worldwide organization. However, small adjustments do need to be made, as no organization is perfect. The IMF regularly talks about how it is doing things for the future, and not the present. I feel that the IMF should start fixing some of the current problems. This will give those countries confidence in the fund. They?ll feel that they can trust the IMF. In conclusion, the IMF is an organization that can help the world, just with small adjustments.