Monday, 27 September 2010

IMF backs coalition spending cuts

So says the headline from the BBC. BBC News - IMF backs coalition spending cuts

It does beg the question though as to what would happen if the IMF didn't back the government's financial plans?

Wikipedia describes the IMF thus:

It is an organization formed with a stated objective of stabilizing international exchange rates and facilitating development through theenforcement of liberalising economic policies[1][2] on other countries as a condition for loans, restructuring or aid.[3] It also offers highly leveraged loans, mainly to poorer countries
Which really sums up what the IMF is about. It's not concerned with the well-being of people, of humanity but the well-being of the financial system it is part of. Capitalism. Especially the nasty neo-liberal type.

So if the IMF didn't agree with an elected sovereign government's financial plans then we can assume it would take action to register it's unhappiness. And there are many and varied ways it can do this.

The IMF does have incredible power for an unelected, unwanted organisation. It can and does dictate to sovereign countries what their economic policies have to be. It can demand the access of international capital to internal infrastructures like water supply, sanitation and other things essential to life.

For such a position of power it should be subject to democratic control. But it never will be because this type of capitalism cannot function under democraic control, being subject to the will of the people. A very good reason for any government with the best interests of it's population at heart to untangle itself from this monster. There is another way, this doesn't have to be the way things are. Don't let them tell you otherwise.

As Billy Bragg once sung, No Power Without Accountability.

Billy Bragg - "NPWA"