I chose Jamaica to do this assignment because I think it is a very clear case of IMF bad practices. The country got independence on 1962, during the time when the world's oil prices were rising and being a major flaw for countries all over the world. In 1973, after fighting with the economy because of the independence they got ten years before, the economy stability disappeared, and here is where the International Monetary Fund comes to the scene.

"The International Monetary Fund (IMF) is an international organization created for the purpose of standardizing global financial relations and exchange rates. The IMF generally monitors the world economy, and its core goal is to economically strengthen its member countries." ("Investopedia", 2003) Would the IMF help Jamaica to solve the economic crisis?

There were some economists in Jamaica that designed a plan to address the country economy, with a long-term loan hoping that solution would help the economy grow slowly. However, the IMF rejected that proposal and they provided a short-term load and, as usual, they enforced some political and economic conditions to grant that loan. The IMF required reductions in pensions and benefits and cuts to public-sector. It was unfavorable treatment because it will allow the IMF to know whether the country could recover from the crisis without taking risks, but was disastrous for Jamaica. (Hilaire, 2000)

This agreement had two terrible consequences for the country. First, the loan had a very high-interest rate, so after paying the loan, it would leave the country in a worse state that they were before taking the loan, so borrowing again would not be an option. The second one is because it was a short loan and not a long one, the money could not be used properly, and it was wasted on non-important things.

This borrowing provoked a negative trade balance, so the country