The IMF and Its Effects on Developing Latin American Countries: Positive or Negative?
Loading...
Authors
Wade, Adam E.
Issue Date
2003
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
This paper explores the role of the IMF and its effects on developing Latin
American countries. By the end, I intend to offer substantial support for the following
hypothesis: Through the study of GDP growth rates and poverty and income distribution
rates in developing Latin American countries, it can be proven that International
Monetary Fund loans are economically beneficial with respect to growth rates; however,
the social implications of structural adjustment programs have severe negative effects
that outweigh those economic benefits.
The core of this paper discuses the IMFs implementation of structural adjustment
programs and the far reaching adverse effects that they impose on the poor of developing
Latin American countries. The research shows two things. Through an analysis of data
from twelve different developing Latin American countries, I was able to show positive
relationships and correlations between IMF loans and GDP growth rates. However, I was
not able provide positive or significant statistical support for the second portion of my
hypothesis. But, that does not mean that there is not any correlation at all.
The majority of this paper focuses on how structural adjustment programs have
negative effects on developing Latin American Countries, citing specific examples from
countries such as Argentina and Columbia. After seeing the negative effects of structural
adjustment programs, as well as realizing that IMF support is a necessary evil for most of
these countries, it is evident that there is a need for a solution. I offer possible solutions
through IMF reform. Overall, one of the most fundamental changes needs to come in the
area of IMF governance and IMF voting rights. The people of these countries should
have a voice in decisions that effect them above all others.
Description
60 p.
Citation
Publisher
License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.