Thursday, December 2, 2010
another russia
With the global recession the IMF has been put in the spotlight again, and no one can be sure exactly what the outcomes of it's policies will be. In 1998 the IMF was unsuccessful in helping Russia ease the burden that resulted of misguided policies of transition. Ten years later Russia is recovering due to an increase in energy prices but also due to stable macroeconomic policies. However, the IMF's role in creating these stable policies is uncertain. This is something to think about as the IMF tries to bail out other European economies that are struggling to recover...what kids of loan concessions are appropriate for the IMF to demand?
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2 comments:
It will be interesting to see how the IMF handles these situations, as I read in Globalization and its Discontents they seem to mess up just about everything. Maybe they can learn from their failures in the past, and finally not put countries into a deeper holes.
It seems like the IMF hasn't learned from its mistakes at all. They really need to be alive to the complexity of the political system in Russia, and that it can't apply the one-size-fits-all approach it usually takes when it comes to Russia. Bailouts, increasing government expenditures or tax reforms aren't always the best policies. And I really don't understand why the people at the IMF keep pushing these policies in different countries with different circumstances.
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