The Intelligence from The Economist Make the world’s money go ‘round: a bunged-up IMF
Apr 13, 2023
Kerry and Richmond Jones, finance and economics writers, share their insights on the IMF's struggles, uncovering how China's lending is endangering its relevance. Robert Guest, Deputy Editor, discusses the grim reality for Latin American farmers grappling with climate change and detrimental agricultural policies. They also explore the paradox of the 'talented jerk' in workplaces, analyzing why these difficult yet skilled individuals continue to thrive despite their challenges. A thought-provoking discussion on money, agriculture, and work culture!
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IMF's Struggles
- The IMF, a key economic forecaster, struggles in its role as a lender.
- It holds over $1 trillion but disbursement is difficult due to issues like China's lending practices.
China's Impact on Debt Relief
- China's refusal to adhere to established lending rules, like the Paris Club agreement, hinders debt relief for struggling nations.
- This makes it harder for the IMF to lend, as its funds are contingent on debt sustainability.
IMF and Repeat Borrowers
- The IMF faces a dilemma with certain repeat borrowers (e.g., Argentina, Egypt, Pakistan).
- These countries often fail to meet loan conditions, yet the IMF continues lending, diminishing its leverage.
