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How the International Monetary Fund Continues to Shrink the Poorer Nations
(thetricontinental.org)
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this post was submitted on 28 Oct 2023
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The IMF is fucked. Anyone wondering why countries prefer dealing with China need only compare the terms given by the IMF against the terms given by China. Chinese loan terms aren't only "reasonable": compared to the IMF, they look like you're robbing China blind.
Kind of. The problem with Chinese terms is that they are very long term. There is also no form of technology transfer as is typical in Western contracts.
The Chinese model has some pluses to it, but there are some minuses to it as well which don't really show themselves immediately.
Technology transfer and austerity. Sort of sounds contradictory, doesn't it?
And yet it is usually a condition in a lot of IMF contracts that local labor be used in the construction of local works, including being taught how to.
In contrast, China sells turn-key systems mostly designed and built by Chinese labor save for some low skill items like earthwork.