ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said IMF has added to the miseries of the third world and helped transfer their wealth to the west.
The policies of the international lending institutions are not short of financial terrorism pushing developing countries to bankruptcy to achieve unholy designs of the western nations, it said.
Many countries are reeling under pressure despite getting billions of dollars in loans while some have been bankrupted due to negative policies of the lending institutions that prefer objectives of the US and some European countries over everything, said Dr. Murtaza Mughal, President PEW.
He said that loans are advanced to troubled countries which seldom help revive the economy but increase their debt burden, he added.
Dr Murtaza Mughal said IMF is responsible for the miseries of many nations as it forces countries to mass layoffs, deregulation, social spending cuts, wage and pension cuts, unrestricted free market access for Western corporations, tax increases for working class, and exchange rate erosion. He said that on paper all 188 member countries have say in the IMF decision but on ground US and major EU economies call the shots which has increased poverty another problem across the developing world.
The IMF has been subject to a range of criticisms, generally focused on the conditions of its loans. The IMF has also been criticised for its lack of accountability and willingness to lend to the country with rampant corruption.
Removal of controls over flows of capital is very important part of the IMF policy which makes it easy for the corrupt politicians to transfer money out of the economy to the west.
