ITUC: "IMF program in Argentina has failed to deliver on its promises"

ITUC: “IMF program in Argentina has failed to deliver on its promises”

Tuesday, July 2nd 2019 - 09:49 UTC

Full article 13 comments

“Argentina has become yet another example of an IMF program that underestimates the hurtful effects of austerity” commented ITUC General Secretary Sharan Burrow

One year since its start, it has become clear that the IMF program in Argentina has failed to deliver on its promises to fix the economy while protecting the most vulnerable. Despite the worsening economy, large human costs, and a significant downward adjustment of growth projections, the IMF is doubling down on its austerity approach and requiring additional spending cuts to meet budget targets.

“Argentina has become yet another example of an IMF program that underestimates the hurtful effects of austerity, and of the damage these policies cause to both the economy and working people,” commented ITUC General Secretary Sharan Burrow.

A detailed analysis of the program documents the evolution of the economic projections over the last year and shows the extent to which the initial agreement failed to predict the negative consequences of its policies. Argentina’s economy is still in recession, inflation has not been subdued, and the country’s debt burden has significantly increased.

Poverty has skyrocketed over the past year, with the poverty rate increasing from 27.3% prior to the agreement, to 32% at the end of 2018. While the agreement did contain a binding spending floor on certain social assistance programs, the floor was set at a level that is inadequate to truly protect the most vulnerable amid the economic hardship. Despite this floor, overall social protection spending has been reduced significantly.

“IMF rhetoric on the importance of social spending and the Sustainable Development Goals should be meaningfully translated into the implementation of loan programs, which at present continue to promote the same harmful austerity policies of the past,” said Sharan Burrow.

Categories: Economy, Argentina.

Tags: Argentina, argentina economy, economy, IMF, IMF Program, ITUC, Sharan Burrow.

Top Comments

Disclaimer & comment rules

DemonTree
What's happening around the world right now, where people finally feel able to speak out about the abuse they suffered long ago, is not at all inconsequential. You can talk about how serious the situation the IMF caused is without joking about rape, even if it was between two 'rich, powerful Yanks'. And how is me thinking the IMF directors will probably get away with it ignoring the seriousness of what they've done?

RE that Taliban fighter, I was doing what you like to do; pretending to hold your beliefs and taking them to their logical conclusion. But I shouldn't have done it. The soldier killing him was wrong, and they were right to put him in jail. As for your language, why go out of your way to offend people? The best case is you're trying to be edgy, the worst you really believe it. And I'm never sure it's not the second.
Jul 03rd, 2019 - 07:18 pm +1
golfcronie
Yes why not blame the IMF? If the IMF had not given a loan where would Argentina be now. Bankrupt I would suggest. All the Unions would want is handouts, it does not work that way.
Jul 02nd, 2019 - 04:36 pm 0
chronic
Alphabet soup of global elites are a plague.
Jul 02nd, 2019 - 05:15 pm 0

Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!