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Imf And Negative Impacts On Argentina

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The IMF and Negative Impacts on Argentina

The International Monetary Fund is an organization created in 1945 consisting of 187 member-countries with goals to foster a global cooperative monetary system, promote international trade growth and exchange rate stability, and maintain a multilateral system of payments. The IMF attempts to achieve these goals by surveilling the global economy, providing financial assistance through credits and loans, and by providing technical assistance. The organization has been surrounded in controversies due to their severe policies that nations are required to follow in order to receive loans, assistance, and debt relief. With this influence on debtor nation’s economies, the IMF controls how much is spent on environmental protection, healthcare, and education. These strict policies undermine political institutions and have had a negative impact on many nations, including Argentina.

In the late 1980s and early 1990s, Argentina was considered to be a model country for the IMF due to their compliance with conservative economic policies. The country sought financial assistance after a decade of instability with increases in external debt, inflation, and fiscal deficits that led to a financial collapse. Argentina received a series of loans from the IMF which gave the organization “leverage to guide Argentine policymakers in privatizing state enterprises, liberalizing foreign trade and investment, and tightening government fiscal and monetary

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