Discusses the extent to which IMF policies contributed to the Mexican economic collapse.
Written in 2005; 3,040 words; 9 sources; MLA; $ 89.95
Paper Summary:
Through a detailed examination of the Mexican financial crisis and a review of the nature of the structural adjustment policies that were implemented in this country, the IMF's role in the development of the crisis is examined.
Introduction
Analysis of the Mexican Financial Crisis
Relation of SAP to Political Crisis
Conclusion
From the Paper:
"The World Bank and the IMF are, theoretically speaking, expected to play a positive role in the development of lesser developed economies. According to Collier, a World Bank economist, and Gunning, an economics scholar at Oxford University, the World Bank and the IMF promote economic development and stability through the application of structural adjustment policies. As explained by Collier and Gunning, who focus their discussion on the IMF, structural adjustment policies can be defined as a set of economic reform policies that supposedly aim towards the reduction of state control over the economy, the development of a liberal open market economy, and the promoting of economic growth and development through trade and foreign direct investment. This is the overall aim of structural adjustment policies with the goal being economic development and stabilization. Further, as explained by Collier and Gunning, the IMF acquires the authority to demand the implementation of such structural adjustment policies through the conditionality attached to its loans. In other words, the condition for an IMF loan, as far as LDCs are concerned, is the application of structural adjustment policies."
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