When the Asian Financial Crisis hit in 1997, the IMF intervened. Today, 25 years later, the same is set to happen, as Sri Lanka plunges into an economic catastrophe, with Pakistan not far behind. This time, Asians are skeptical. Why? The IMF lends short term loans: loans with many strings attached. During the Asian Financial Crisis, they lent $110 billion dollars in packages to Thailand, Indonesia, South Korea to support them. The strings included higher taxes, interest rates, and budget cuts that caused massive unemployment, causing the Asian economies to spiral into chaos. The IMF focuses on privatization and competitive, capitalist policies that have devastating impacts on the Global South. And they refuse to look at real people and their suffering. What is the point of institutions when they only really serve the 1% who continue to get richer?
When the Asian Financial Crisis hit in 1997, the IMF intervened. Today, 25 years later, the same is set to happen, as Sri Lanka plunges into an economic catastrophe, with Pakistan not far behind. This time, Asians are skeptical. Why? The IMF lends short term loans: loans with many strings attached. During the Asian Financial Crisis, they lent $110 billion dollars in packages to Thailand, Indonesia, South Korea to support them. The strings included higher taxes, interest rates, and budget cuts that caused massive unemployment, causing the Asian economies to spiral into chaos. The IMF focuses on privatization and competitive, capitalist policies that have devastating impacts on the Global South. And they refuse to look at real people and their suffering. What is the point of institutions when they only really serve the 1% who continue to get richer?