IDSA01H3 Lecture Notes - Lecture 5: International Monetary Fund, Washington Consensus, General Agreement On Tariffs And Trade
6 Dec 2018
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Lec 05: development as a practice, the bretton woods institutions and the washington. Imf was established to manage financial crises in developed countries: world bank set up to finance reconstruction of europe after the war, after this it"s goal was to extend loans for development to poor countries. 1973 oil crisis and the third world debt crisis. Private banks lend this money to developing countries to finance development. Funds often borrowed by dictators and military governments. Countries at risk of defaulting on their loans. Between 1976 and 1983 argentina ruled by military dictatorship. Military dictatorship borrows billion during this time from private banks. In 1980s interest rate increases and declining commodity prices means argentina struggles to pay off debt. Poverty and inequality increase: between 1986 and 2002 the number of people living on less than a day increased from 100,000 to 9 million. World bank and imf offer debt refinancing in exchange for policy changes: sweeping liberalization and privatization.
