Alt Left: Why the World Bank and IMF Push Structural Adjustment on Countries That Request Loans from Them

The World Bank and the IMF (both of which are basically run by the US) forced the Third World countries that requested loans to gut and privatize their public sectors in order to get the loans. The stated reason was to lower the state’s expenditures so they would have more money to pay their loans back.

But it often came with a lot of other demands like opening up the country to foreign investment (rape, rob, and ruin exploitation) cutting the wages of workers, attacking labor unions and gutting labor protection law, lowering or eliminating the minimum wage, etc. It’s hard to see how any of these things enables the state to pay their loans back easier, especially as the attack on the incomes of the 80% majority  would lead to much lower tax revenue for the state.

I’d say the World Bank and the IMF have an ulterior motive, the same as the US – to promote neoliberalism, if need be by force, the world over because the neoliberal model is what’s best for the US oligarchy and the corporations.

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