The IMF and its program - based on Shimko Textbook and IR class lecture by Ms. Laura

            Today free trade grown intensively in the world. This means that protectionism is slowly diminishing. Free trade is a system of trade policy that allows traders to trade without barriers and with less government interference. Protectionism is attempts to safeguard ones economy that involve the implementation of economic tools such as tariffs, import quotas, subsidies, and non tariff barriers.
            Free trade and protectionism are based on system called LIEO. LIEO stands for Liberal International Economic Order. LIEO is an economic order embodying traditional liberal preference for free and open trade as a means of promoting economic efficiency and prosperity. LIEO emerge after world war two by the US. Interpreting the great depression occurred in 1930 caused by the economic nationalism, US, the militarily and economically powerful country, suggests that liberal international trade is the way to prevent another crisis. Thus, LIEO aim international trade less government intervention. There are several organizations and institutions made to support the free trade dispersion: World Bank, International Monetary Fund (IMF), General Agreements on Tariffs and Trade (GATT), and World Trade Organization (WTO). All of these organizations, including GATT and WTO, are enforcing international rules, promoting free and open trade, and reducing obstacles of international trade. That is why GATT and WTO serve the goal of LIEO to promote free trade.
            Another organization is International Monetary Fund. International Monetary Fund is an international organization that helps countries deal with balance of payment issues. IMF works on developing countries on supporting their development. It offers short term assistance for countries to pay their due loans. In order to get assistance from IMF, a country has to follow some ways that obliged by the IMF. These requirements are called structural adjustment programs. Structural adjustment programs (SAP)’s main point is for developing countries to open their economy and take part in free trade. This SAP had been criticized by people because IMF seems to generalize all countries by simply saying SAP works for every country, while apathetically admit that every country has its own characteristic and differences. But, when it turns out that this SAP is not working for all countries, IMF blamed the government for making poor decisions. Another point that is criticized is the short-term assistance. People question country’s ability to pay that much of money in such a short time while they remain in crisis. Therefore, people seen IMF as controversial and does not help developing countries out of their problem but in fact making them suffer even more.
            Another bad effect from country’s eco-social point of view is that structural adjustment program put less emphasis on education, health care, and social welfare program. The structure abandons some critical needs of society. Actually education, health and welfare can help a country to develop in order to guarantee continuity of its people quality. Not only for social reasons that country needed those things, but also for the improvement of their future economics. Today, there are more unemployment which is caused by pressure brought by SAP to producers. The Structural Adjustment Program’s free trade had pushed developing nations to sell their labor as cheap as possible to generate cheaper products. A lot of employers are fired because of the costs race, race to the bottom. These countries are being pushed by the developed countries to provide them delightful price for their products. In the end, those countries society becomes the victim and the state’s economy become scrambled.
            In the movie Life and Debt, people concerns about IMF action toward Jamaica have been criticizing the effect of structural adjustment problem that is so detrimental and disadvantageous for Jamaica. IMF came to Jamaica and forced Jamaican government to restrict its spending so tightly and to open its economy for global market. The cooperation of Jamaica and IMF does not result in any betterment; on contrary it creates greater hardship. IMF forces devaluate the value of Jamaican dollar. The restriction on Jamaican government spending and imports are killing Jamaican because they keep on exporting their production and the government no longer capable of even feeding the people. IMF keep on forcing them to exports all commodities without caring the people’s wealth. Second, the IMF required Jamaica to adopt free trade and the result is an unimaginable severity. Not only that the Jamaican product lost in market competition, but the industries are closing down and societies are losing their occupations. A country like the US put 137% subsidies upon their milk product. How can a country compete towards that condition?  Government is not even allowed to help farmers but government have to push farmers. They are struggling because the prices of foreign products are cheap because the government subsidized them and they cannot even survive without government subsidy. Another countries like the US which constitute most of IMF role do not buy Jamaican products and even claimed to WTO while European Union grant the Jamaican duty free banana exports. While, the Jamaican debt keeps on swelling. As a result, Jamaican has no more capital to continue their business. Life had changed for them, even worse. This country started with poverty and ended with even more tremendous poverty.  This country, Jamaica, had proven that IMF’s Structural Adjustment Program might work to countries such as the US and European countries, but it does not work for most developing countries.

CONVERSATION

7 comments:

  1. Your first move the fact that Anne Hathaway managed was initially to convert any being dressed in. Your sweetheart has become chanel replica when using the posh dresses. Together with your girlfriend device this way Chanel pendant is certainly lovely. As a minimum any amazing looks constructed your girlfriend have enough self esteem ahead of your girlfriend person in charge. Together with your girlfriend person in charge adjusted any outlook all the way to your girlfriend. Your sweetheart used your girlfriend far better deliver the results good. And this was initially chanel replica the fact that your sweetheart have any techniques to generally be your girlfriend secretary. Looks will be much necessary using periods. In conclusion are usually have the fact that Anne Hathaway adjusted your girlfriend hair straighteners too . any member of way visitors. Any Chanel pendant the fact that Anne Hathaway used the portrayed a key job during developing your girlfriend popularity ahead of your girlfriend person in charge. A wide range of HOUR mention these undertake treasure the look within their job interviews. These mention our chanel replica together with techniques are visible within the looks somewhat. It is my opinion never assume all any bosses choose to look at your workforce maintain sloppy or simply from a mass fast, quite possibly grumpy. The fact that Chanel pendant has long been incredibly hot seeing that Anne Hathaway used the it all during the video clip Any Devil Wear Prada. As well as being that your devil wear prada Chanel pendant is certainly worthful. It is actually fine jewelry chanel replica handbags merits getting. As being an chanel outlet it is actually attractive together with posh which unfortunately belongs to the must-have device during the couple of years.

    ReplyDelete
  2. This NFL Flag for Tennessee Titans is constructed of polyester, measures 3x5 feet, and has two metal grommets for attaching to our 6' aluminum flagpoles or any of our tailgate pole systems. The perimeter of our NFL Flag for Tennessee Titans is double stitched and the team logos are screen printed into the flag so they won't peel. Because of its large size, these flags are great to hang on any wall in your game room, sports room, garage.
    nfl flags wholesale,
    house divided flags,Cincinnati Bengals house flags
    Packers stars and stripes flags, House Divided Flags,Sports Flags 3x5, Sports flags and banners,nfl House Divided Flags

    ReplyDelete
  3. Caratterizzato da un interessante, la costruzione collare, il nuovo Cagliari Calcio Maglia è bianca con una banda del blu marino-e-rossa sul lato sinistro. I due colori sono utilizzati anche sui polsini sinistro e destro del nuovo kit di Cagliari distano rispettivamente.maglie calcio poco prezzo,
    maglie da calcio a poco prezzo, nuove Maglia Atletico Madrid
    Maglia Barcelona vendita

    ReplyDelete
  4. Anonymous5/06/2022

    Yeezy Shoes
    Yeezy
    Adidas Yeezy
    Louis Vuitton
    Louis Vuitton Online Shop
    Adidas Yeezy
    Yeezy Shoes
    Adidas Yeezy
    Yeezy Slides
    Yeezy Supply
    Golden Goose
    Golden Goose Sneakers
    Yeezy slides
    Air Jordan 1
    Jordan 1
    Jordan Shoes
    Jordan 1
    Air Jordan 1
    Jordan 1
    Yeezy slides
    Yeezy
    Yeezys
    Adidas Yeezy
    Yeezy Shoes
    Yeezy
    Ray Ban Sunglasses
    Ray Bans
    RayBan
    Ray Ban Sunglasses
    Ray Ban Glasses
    天目茶碗
    曜変天目茶碗
    曜変天目
    Nike Shoes
    Jordan 4S
    Jordan 4
    Nike Outle
    Jordan 1S
    Yeezy Shoes
    Yeezy Supply
    Yeezy Slides
    Coco Chanel
    Chanel
    Chanel Handbags
    Coco Chanel
    Chanel
    Chanel Handbags
    Chanel West Coast
    gucci
    Yeezy 350
    Yeezy Slides
    Yeezy Slides
    Yeezy Slides
    Yeezy
    Yeezy Supply
    Yeezy Supply
    Yeezy Shoes
    Yeezy Shoes
    Nike Store
    Nike Shoes
    Nike Outlet
    Nike Shoes
    Nike Outlet
    Ray Ban Sunglasses
    Ray ban Sale
    Coach
    Coach outlet
    Gucci Outlet
    Louis Vuitton Outlet
    Louis Vuitton
    Louis Vuitton Handbags
    Louis Vuitton Outlet
    Louis Vuitton
    Rolex Watches
    Rolex Watches
    Rolex Watches
    Rolex
    Rolex
    Rolex
    North Face Outlet
    North Face
    The North Face
    Nike Shoes
    Nike Outlet Store
    Yeezy Slides
    Yeezy Shoes
    Yeezy Supply
    Yeezy Shoes
    Yeezy Shoes
    Burberry Sale
    Burberry Outlet
    Yeezy Supply
    Pandora Necklace
    Michael Kors Outlet
    Michael Kors
    Off White Shoes
    Off White Shoes
    Moncler Outlet
    Moncler Factory
    Moncler Vest
    Moncler Coat
    Burberry Outlet Online
    Michael Kors Outlet

    ReplyDelete

Thanks for visiting etinology!

Instagram Feed | @Etinology