International Monetary Fund (IMF)\ Flashcards
What does the IMF do
Transfer loans from HICs to countries that have applied for help
Recipients of the loan must agree to run free market economies so TNCs can locate there easily
evaluation of role
Think Argentina
Strict conditions on governments borrowing which may result in the governments reducing spending on healthcare, education etc.…
and become dependent on IMF for more loans so cycle repeats over and over(Argentina have loans of 46bn
imf makes countries that take loans sign sap’s in which they had to
trade liberalisation
austerity cut government spending
privation sell all government business
What country did the imf help in 2008
in 2008 Greece received the first in a series of IMF loans when its foreign currency earnings were insufficient to pay its existing debt obligations.
