Running to the now ‘reformed’ IMF would be a mistake
Covid-19 creates an opportunity for the government to act boldly, which includes greater investment in social services and a much larger public sector
Historically regarded as a villain that has obstructed the prosperity of “developing nations”, the International Monetary Fund (IMF) has taken many of its critics by surprise. It is now saying that exchange controls (finally on outward flows, not just inflows) are precisely what “developing nations” need to exercise sovereignty. But it’s not just its recommendation of controls that’s so surprising.
In response to the coronavirus, the IMF is now offering grants or loans with comparatively low interest rates (albeit dollar denominated), and with few conditions attached. This has been sufficient for Esra (https://www.businesslive.co.za/bd/opinion/2020-05-27-reformed-imf-has-options-with-fewer-strings-attached/)Uğurlu and Adam Aboobaker (https://www.businesslive.co.za/bd/opinion/2020-05-27-reformed-imf-has-options-with-fewer-strings-attached/) (Reformed IMF has options with fewer strings attached, May 27) to argue that turning to the IMF is an attractive prospect to source cheap...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.