If you read the proposals below you would think that you had found yourself at a Tea Party rally. You would be wrong. These are the programs that the IMF (the International Money Fund) imposes on countries like Greece, Ireland, Argentina, and Portugal. Now the global banksters want to impose them on us. Banana Republicans = Banana Republic. By the way the Democratic Party is heavily invested in this neoliberalism too. It’s time to dump both parties.
The global bankers like to impose “structural adjustment” on misbehaving nations (the ones who are in danger of not paying back their debts of course):
Some of the conditions for structural adjustment can include:
- Cutting expenditures, also known as Austerity.
- Focusing economic output on direct export and resource extraction,
- Devaluation of currencies,
- Trade liberalization, or lifting import and export restrictions,
- Increasing the stability of investment (by supplementing foreign direct investment with the opening of domestic stock markets),
- Balancing budgets and not overspending,
- Removing price controls and state subsidies,
- Privatization, or divestiture of all or part of state-owned enterprises,
- Enhancing the rights of foreign investors vis-a-vis national laws,
- Improving governance and fighting corruption.
These conditions have also been sometimes labeled as the Washington Consensus.
Structural adjustments are the policies implemented by the International Monetary Fund (IMF) and the World Bank (the Bretton Woods Institutions) in developing countries. These policy changes are conditions for getting new loans from the IMF or World Bank, or for obtaining lower interest rates on existing loans. Conditionalities are implemented to ensure that the money lent will be spent in accordance with the overall goals of the loan. The Structural Adjustment Programs (SAPs) are created with the goal of reducing the borrowing country’s fiscal imbalances. The bank from which a borrowing country receives its loan depends upon the type of necessity. The SAPs are supposed to allow the economies of the developing countries to become more market oriented. This then forces them to concentrate more on trade and production so it can boost their economy.
Through conditionalities, Structural Adjustment Programs generally implement “free market” programs and policy. These programs include internal changes (notably privatization and deregulation) as well as external ones, especially the reduction of trade barriers. Countries which fail to enact these programs may be subject to severe fiscal discipline. Critics argue that financial threats to poor countries amount to blackmail; that poor nations have no choice but to comply.