I.M.F. Policy Direction
In late December 2012 I watched a TV interview with Dr. supachai Panitchpakdi of UNCTAD.
The interview was conducted against the back drop of Jamaica trying to ink an I.M.F. deal. Dr. Panitchpakdi was very forth coming. “The one method fit all policy of the I.M.F. could be very destructive” asserted Dr. Supachai. “The Fund must take into account the cultural nuances and peculiarities of each country, during the negotiations process” Dr.Supachai continued.
Obviously seeing the humor in the situation Dr. Supachai made clear the fact that back 2007 when The U.S.A. was in deep red ink, they did the opposite of what is usually prescribed by the Fund.
Mr. Obama went for all out, bail out. There weren’t any Austerity Programs or any real cut backs. The President flatly refused the medicine of the fund. Maybe the medicine was bitter.