Difference between revisions of "Globalisation:International Monetary Fund:Case Studies"
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One of the regions where the IMF has attracted most criticism is for their heavy and unbalanced involvement state and financial structure of Mexico. | One of the regions where the IMF has attracted most criticism is for their heavy and unbalanced involvement state and financial structure of Mexico. | ||
In recent history, the IMF has granted over $5 billon (USD) to mexico in an attempt to give mexico less poverty, stability, economic gain and financial protection from declining oil revenues <ref>[http://www.imf.org/external/country/mex/index.htm] www.IMF.org activities in mexico, </ref> | In recent history, the IMF has granted over $5 billon (USD) to mexico in an attempt to give mexico less poverty, stability, economic gain and financial protection from declining oil revenues <ref>[http://www.imf.org/external/country/mex/index.htm] www.IMF.org activities in mexico, </ref> | ||
| − | However many of the programmes undertaken as a result of IMF Stuctural Adjustment Policies (see policies section) have been subject to criticism. In fact the IMF could be considered liable as a large instigator of Mexico's financial crisis in 1994. The IMF advised that mexico should devalue the Peso; also by encouraging the privatisation of many state run banks and other industries the country built up a massive debt burden <ref>,[http://www.cato.org/pubs/journal/cj17n3-14.html] THE ORIGIN OF MEXICO'S 1994 FINANCIAL CRISIS Francisco Gil-Diaz, </ref> | + | However many of the programmes undertaken as a result of IMF Stuctural Adjustment Policies (see policies section) have been subject to criticism. In fact the IMF could be considered liable as a large instigator of Mexico's financial crisis in 1994. The IMF advised that mexico should devalue the Peso; also by encouraging the privatisation of many state run banks and other industries the country built up a massive debt burden <ref>,[http://www.cato.org/pubs/journal/cj17n3-14.html] THE ORIGIN OF MEXICO'S 1994 FINANCIAL CRISIS Francisco Gil-Diaz, </ref>. In other cases the Mexican Government was advised to steer away from the public funding of improvements to the systems of water provision in their traditional agricultural areas during times of drought. Instead the IMF advised to focus on the "Maquilladora regions" (The northern region where manufacturing of parts for American firms for export is the prevalent industry) <ref>[http://new-federalist.com/other/2004/3138mex_drought.html] "The IMF is Killing Mexico with Thirst" Alberto Vizcarra Osuna</ref>. The result of IMF advice and structural adjustment was the decimation of land use, ensuing poverty, a depressed economy and unemployment in the agricultural sector. Is this true nature of the "success" the IMF claims to be Having in the Region? Only when the mexican government reverted away from the IMF programs (by revaluing the peso and beggining to move away from IMF aid) did their economic status improve. <ref>http://www.capmag.com/article.asp?ID=687] "Abolish the IMF" Richard Salzman |
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| + | Essentially in this case; promotion of capitalist interests through structural adjustment polices led to the economic failure of a large state, with wide reaching affects.. | ||
==notes== | ==notes== | ||
<references/> | <references/> | ||
Revision as of 12:53, 11 March 2008
The Following are case studies of financial situations in the world market, the IMF involvement and responses of the organisation.
The east asian crisis
The global economic crisis began on July 2, 1997 in Thailand. Previous decades had seen the countries of East Asia improve dramatically, incomes had soared, health had enhanced and poverty had decreased rapidly. Some of the countries had not experienced a single year of recession in almost 30 years.[1]
Towards the beginning of the 1990s, East Asian countries had liberalized their financial and capital markets because of increased national pressure form the U.S Treasury Department.[2]
IMF involvement In Mexico
One of the regions where the IMF has attracted most criticism is for their heavy and unbalanced involvement state and financial structure of Mexico. In recent history, the IMF has granted over $5 billon (USD) to mexico in an attempt to give mexico less poverty, stability, economic gain and financial protection from declining oil revenues [3] However many of the programmes undertaken as a result of IMF Stuctural Adjustment Policies (see policies section) have been subject to criticism. In fact the IMF could be considered liable as a large instigator of Mexico's financial crisis in 1994. The IMF advised that mexico should devalue the Peso; also by encouraging the privatisation of many state run banks and other industries the country built up a massive debt burden [4]. In other cases the Mexican Government was advised to steer away from the public funding of improvements to the systems of water provision in their traditional agricultural areas during times of drought. Instead the IMF advised to focus on the "Maquilladora regions" (The northern region where manufacturing of parts for American firms for export is the prevalent industry) [5]. The result of IMF advice and structural adjustment was the decimation of land use, ensuing poverty, a depressed economy and unemployment in the agricultural sector. Is this true nature of the "success" the IMF claims to be Having in the Region? Only when the mexican government reverted away from the IMF programs (by revaluing the peso and beggining to move away from IMF aid) did their economic status improve. <ref>http://www.capmag.com/article.asp?ID=687] "Abolish the IMF" Richard Salzman
Essentially in this case; promotion of capitalist interests through structural adjustment polices led to the economic failure of a large state, with wide reaching affects..
notes
- ↑ Joseph Stiglitz "What I learned at the World Economic Crisis http://www.mindfully.org/WTO/Joseph-Stiglitz-IMF17apr00.htm 04/03/08"
- ↑ Joseph Stiglitz "What I learned at the World Economic Crisis http://www.mindfully.org/WTO/Joseph-Stiglitz-IMF17apr00.htm 04/03/08"
- ↑ [1] www.IMF.org activities in mexico,
- ↑ ,[2] THE ORIGIN OF MEXICO'S 1994 FINANCIAL CRISIS Francisco Gil-Diaz,
- ↑ [3] "The IMF is Killing Mexico with Thirst" Alberto Vizcarra Osuna
