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Posts tagged with: IMF

How we got into the IMF Trap

imf-trapping-countries-in-debtI was shocked to read a status message of a fellow bloggers on facebook. “IMF approves another $3.2Billion for #Pakistan bringing the total to $11.3Billion > with all the relief we are still no better > I think we are Royally Screwed for life“, it reads. Another fellow claims it as Zardair’s fault! This was a shock for me as the gentleman is very well educated, an online activist and very much familiar about economic and social issues.

Many of us get in to trap of slogans of political leaders who try to sell every thing for sake of some public support, some times we get confused and ignore the facts. Some of these leaders are disillusioned or unaware of economic and social parameters and others dishonestly exploit the public which is not supposed to be expert on every subject, the illiteracy adds the confusion. The simple rule, if you can not fight them, confuse them! The so called ‘leader’ earns popularity by cheating people, ‘intellectually’.

Let us began with basics. National economy is not different from household budget. We are a global village and trade in international community as a town or village do. If income of a household is Rs. 100 but spending is 150, then the family has to borrow to meet additional spending in shape of credit card or bank loan or even credit from community. The alternate is to increase the household income by working hard or producing more and spending less.
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The Myth of Independence – Economic Imperialism

IMF WorldBank feeding Pakistan“The notion that Pakistan controls the reigns to the economic resources of the country is incorrect—she doesn’t. The G-7 does. They are the ones who make all the economic decisions for us, for our country, through their institutions like IMF, World Bank, and WTO through the policies of SAP, TRIPS, and TRIMS. The idea is to expropriate our land, our labor, our raw materials, and our markets for their own profits. This is what economic imperialism is all about.”

Pakistan stands in debt of in excess of $38.8 billion 1 (2005 est.) to IMF and World Bank (WB), a debt perpetually increasing 2 (courtesy of Interest), a debt impossibly repayable (?), and yet, this scarcely bothers our lenders! So why do the IMF and WB continue to lend? And equally more important to know is from where do they find all this extra money to lend, especially when they are never repaid in full? (this is in itself a separate chapter of discussion altogether) The answer to first question however is straight-forward and obvious: they want to see us and keep us in debt forever, for debt is a kind of slavery, and a tool, a means, for them, to achieve their own economic agenda, the economic agenda being expropriation of our land, labor, raw materials, and markets, for owns profits. (Michael Parenti) This is what is known by Economic Imperialism.

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The IMF Trap

Guest post by A.H.Kalwar of Pakistion Blog

Russia is the largest borrower from the International Monetary Fund (IMF). The initial objective and promises by IMF were to quickly bail Russia out of an economic crises, and throw it back on track. Today Russia’s debts to the IMF are so big that the only way to ensure repayment is to keep borrowing more. This summer alone $4.5bn have been borrowed entirely for minimum repayment of previous IMF loans.

A brief look at institution’s like the World Bank and IMF rings loud bells. The constant failures of such institutions have elevated poverty, widened the wealth gap, while corporate profits sore. The joint economic comity of the U.S. congress admitted that there is a mire 40% success rate of the World Bank. Even that is an exaggeration.
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Pakistan Ka Mutlub Kia? Islam Ki Ruswai, Aur Kia

Guest post by temporal of Baithak Blog

Al- Quran 5:32 “…if any one slew a person – unless it be for murder or for spreading mischief in the land – it would be as if he slew the whole people: and if any one saved a life, it would be as if he saved the life of the whole people.”

Forget we are Pakistanis for a moment? Remember we are Muslims – first and last – nice, wonderful, kind, gun toting neighbour hating Muslim.

Of course this has nothing to do with Islam or Pakistan. Any one who casts even a wild aspersion over this is a bigot.

True, 98 or 99% of Pakistanis follow Islam.

True, at cartoons and books published in distant lands forces us to come out in the streets and burn and loot our public property.

True, we believe in one Allah.

True, we kill other Muslims in the name of (our) Allah without regret.

True, true, true!
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