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Back
in the late 90s and the Asian crisis, IMF policies managed to destroy
the economies of several countries in SE Asia:
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“In
each case, embarrassed by the failure of its supposed medicine to
work, the IMF charged the country with failing to take the
necessary reforms seriously. In each case, it announced to the
world that there were fundamental problems that had to be
addressed before a true recovery could take place. Doing so was
like crying fire in a crowded theater: investors, more convinced
by the diagnosis of the problems than by the prescriptions, fled.
Rather than restoring confidence that would lead to an inflow of
capital into the country, IMF criticism exacerbated the stampede
of capital out. Because of this, and the other reasons to which I
turn shortly, the perception throughout much of the developing
world, one I share, is that the IMF itself had become a part of
the countries' problem rather than part of the solution.”
“In
1998, GDP in Indonesia fell by 13.1 percent, in Korea by 6.7
percent, and in Thailand by 10.8 percent. Three years after the
crisis, Indonesia's GDP was still 7.5 percent below that before
the crisis, Thailand's 2.3 percent lower.”
From
Joseph Stiglitz's "Globalization and Its Discontents"
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Today,
Troika's joined forces in Greece represent a more "successful
story": In just three years, between 2010 and 2013, the GDP of
the country shrank by 25%, not to mention the unprecedented poverty
and unemployment.
(http://failedevolution.blogspot.gr/2013/05/three-years-of-austerity-zero-in.html)
So, the joined forces of the European Commission, European Central
Bank and International Monetary Fund present better "achievements"
than IMF by itself.
What's
remarkable, however, is the mixed communicative policies of this
powerful, destructive coalition. While Greece was blamed several
times that does not take all the necessary reforms, which is an IMF
tactic to blame the countries rather than its catastrophic recipes,
Troika decided to "reward" its faithful Greek government by
"signaling" to the markets to buy Greek bonds: "How
else could we explain the fact that Moody's has chosen this moment of
time to upgrade Greek bonds, when the condition of the Greek economy,
according to the data, is much worse than 2010 when Greece was
excluded from markets? When there is not even the slightest sign for
the 'coming recovery'?"
(http://failedevolution.blogspot.gr/2014/08/a-new-message-from-international.html)
Of
course nothing has changed and the Greek economy is in the worst
position than ever. Both policies show that Troika is in constant
denial, in fact it doesn't care about any improvement for the Greek
economy. What it wants, is to help current government to stay in
power until 2016, so that to finish the experiment.
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