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Global Capital vs. Local Economy: Conditionalities of the IMF and Fiscal Reform

By voice - Posted on 22 January 2008

global capital vs. local economy

SUMMARY - A battle is currently being raged in the global marketplace between
global and local economies. However, with the force of millions of
dollars of global capital supporting it, and a powerful influence over
the local governments and policymakers, the global side is definitely
not playing fair.

The World Bank (WB) and the International Monetary Fund (IMF) have
been lending money to Bangladesh for many years, ostensibly under the
banner of ‘aid’. These loans inevitably come tied with conditions,
which hinder the country’s growth and keep down its people.
IMF-sanctioned policies, such as privatization of public services,
reduction of trade tariffs, supplanting local industries with cash-crop
oriented export industries, and many more, have left Bangladesh and its
people at the mercy of a free market economy which has no qualms with
profiting from the poverty of others.

These conditions, handed down from the lenders above, have resulted
in policies of fiscal and social reform that have mercilessly destroyed
our local economies and caused the suffering of many people. VOICE has
published this report with the intention of outlining some of the IMF
conditions and their subsequent effect on our country. We have
presented a seminar summary as well as a reference section of media
articles. We hope that this report will bring to light the injustices
of the IMF and serve as a potent weapon in the struggle against IFI