The International Monetary Fund and Argentina
The International Monetary Fund is there to prevent local economic problems from becoming global crisis. If a specific country is having issues the IMF will then offer their services of loaning them money in return for policies in order to stop the crisis from getting out of hand. Their goal it to help on the global economy and not just a local economy, when dealing with the local economies they do what is best globally economic wise. It helps resolve crises, and works with its member countries to promote growth and alleviate poverty.
Argentina was the prime example for the free market, conservative economic policies pushed by the International Monetary Fund. The Buenos Aires government privatized state enterprises, liberalized foreign trade and investment, and tightened government fiscal and monetary policy. During the 1990s the country’s economy seemed to do well. It now turns out, however, that things were going to make a turn for the worst, as they did not build a very strong foundation. Economic growth in that period, while substantial, appears to have been in large part the result of an increasing accumulation of international debt, fortuitous expansion of foreign markets, and short term injections of government revenues from the sales of state enterprises.
Coming to the end of that decade, things for Argentina starting going downwards. By mid-2001 Argentina was into its third year of recession, and its financial problems were threatening the stability of other markets that were emerging. The unemployment rate has risen above 15%, worsening the impact of the increasing income inequality that has characterized the whole IMF-dominated era in Argentina. Suddenly people of Argentina started to protest, by flooding the streets, beating pans together to make noise and simple protesting.
Argentina’s problems are all