Reading 4: Part 2

Question 1

give an example of the mismatch between what IMF says and does

Answer 1

countries. For example, they mandate the privatization of public utilities or changing the competition framework. As a result, governments’ freedom to select policy instruments in
dealing with crises is constrained.

Question 2

Similarly, several countries’ lending programs included extensive pension reforms. Romania’s program targeted
pensions, including a 15 percent pension cut and other changes to reduce payouts and raise the retirement age. The
measures were controversial, and the Romanian constitutional court struck them down. Yet, a few months later, the
IMF reintroduced the same reform package as part of its updated adjustment program. This stipulated

Answer 2

the parliamentary approval of pension reform legislation, and the measure eventually passed despite objections from the
Romanian president.

Question 3

Similarly, Portugal’s adjustment program stipulated

Answer 3

stipulated a higher retirement age, less leeway for collective bargaining on
wage issues, and the alignment of the civil service employment regime to that of the private sector.

Question 4

The return of structural adjustment brings these decades-old criticisms of IMF programs back to the fore. The scale
and pace of reforms to the IMF’s practices do not match

Answer 4

the organization’s rhetoric.