Ecuador’s new loan program: a tale of two IMFs- Open Democracy
In her speech opening this year’s Annual World Meetings, IMF Managing Director Kristalina Georgieva warned of the dangers of an uneven recovery and increasing inequality and talked of the need for an inclusive recovery. Otherwise, Georgieva warned, we are at risk of recreating the dystopian world of Charles’s Dickens novel “A Tale of Two Cities”.
Just days before this speech, the IMF released its latest loan agreement with Ecuador. In it, we find the exact same policy prescriptions Georgieva warned against.
The gap between IMF rhetoric and its actions is not new. For years, the research department of the IMF has shown that austerity and many of the reforms imposed by the IMF worsen inequality, while leadership talked about an IMF that now supports “inclusive growth.”
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