Re: [OPE-L] [Jurriaan on] Has the IMF lost its influence?

From: Gerald_A_Levy@MSN.COM
Date: Thu Sep 29 2005 - 04:12:04 EDT

----- Original Message -----
From: "Jurriaan Bendien" <>
Sent: Thursday, September 29, 2005 2:25 AM
Subject: Has the IMF lost its influence?

This question must be assessed in terms of the sources of borrowed capital
by governments. Governments have the option of borrowing money from the
private sector, from other governments, or international institutions.
Typically, in the past, it was more advantageous to borrow from other
governments or international institutions, or, governments had no other

As the amount of privately-owned "surplus capital" in search of an
acceptable return rises, however, governments find often that they can do
better credit deals in the private sector, or with other governments,
rather than with international institutions which impose extra conditions.
In that  sense, the IMF is now getting competition from other sources
of credit.

Few OECD countries borrow any significant amounts from the IMF; poorer
countries do so, because they lack alternatives. But as soon as they do
have alternatives, the IMF becomes less popular.


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