POSC 476 Lecture 6: Nelson article
8 Oct 2018
School
Department
Course
Professor
Nelson’s uses his article to demonstrate that the “IMF lending is systemically
biased”, arguably that it leans towards key economic policy-makers in the
borrowing country. In order to access of funding a country must agree to a set
of policy targets and if they fail to meet it the IMF can cut the funding that they
gave to their government. From my own knowledge, I read that IMF staff
sometimes avoid reciting risks to advanced economies – in contrast to their
advice to smaller, poorer nations. This perception has to amplified when the
IMF lent billions of dollars to European countries such as Greece & Portugal,
with loans that are much greater than the countries’ economies and where not
able to devaluate their domestic currency. However, in the article it
demonstrates the process that the IMF lending such as enforcement and
conditionality. From this, it is inferred that the IMF gives ‘better deals’ to some
borrowing countries than others; this could be due to major stakeholder
intervening in the process.
Document Summary
Nelso(cid:374)(cid:859)s uses his arti(cid:272)le to de(cid:373)o(cid:374)strate that the (cid:862)imf le(cid:374)di(cid:374)g is syste(cid:373)i(cid:272)ally (cid:271)iased(cid:863), argua(cid:271)ly that it lea(cid:374)s to(cid:449)ards key e(cid:272)o(cid:374)o(cid:373)i(cid:272) poli(cid:272)y-makers in the borrowing country. In order to access of funding a country must agree to a set of policy targets and if they fail to meet it the imf can cut the funding that they gave to their government. From my own knowledge, i read that imf staff sometimes avoid reciting risks to advanced economies in contrast to their advice to smaller, poorer nations. Imf lent billions of dollars to european countries such as greece & portugal, (cid:449)ith loa(cid:374)s that are (cid:373)u(cid:272)h greater tha(cid:374) the (cid:272)ou(cid:374)tries(cid:859) e(cid:272)o(cid:374)o(cid:373)ies and where not able to devaluate their domestic currency. However, in the article it demonstrates the process that the imf lending such as enforcement and conditionality.
