Najam Interviewed on IMF Inefficiencies
In an appearance on Aaj News TV‘s “Aaj Markets,” Adil Najam, Dean Emeritus and Professor of International Relations and Earth and Environment at Boston University’s Frederick S. Pardee School of Global Studies, discussed the International Monetary Fund‘s (IMF) effectiveness in assisting developing countries in monetary crisis.
In talking about Pakistan’s ongoing negotiations with the IMF, Najam argued it is important to remember that by the time countries are forced to go to the IMF, they are already in trouble and, invariably, they are in trouble for their own economic mismanagement faults; “however, it is also evident that while the IMF does not cause the problems in indebted countries, it has been consistently ineffective in helping with workable solutions.” Najam suggested that given the IMF’s central mission of maintaining and enhancing global monetary and financial stability, the fact that between 20 to 30 countries are on the verge of sovereign default today is an indictment of the IMF’s own competence, even if the primary fault lies with the countries themselves.
Najam pointed out that while it is unfair to expect the IMF to be a silver bullet for countries in trouble, it is a fair question to ask “whether the IMF is now helping or hurting.” One way, according to Najam, that IMF mandates can make the situation worse for many countries is that “IMF conditionalities are increasingly becoming de facto sanctions” for struggling countries since they have the adverse impact of also turning off all other sources of international assistance and investment until IMF bureaucrats give a green signal.
The full program can be viewed (in Urdu) below.
Adil Najam is a global public policy expert who served as the Inaugural Dean of the Frederick S. Pardee School of Global Studies at Boston University and was the former Vice-Chancellor of the Lahore University of Management Sciences (LUMS). His research focuses on issues of global public policy, especially those related to global climate change, South Asia, Muslim countries, environment and development, and human development. Read more about Professor Najam on his Pardee School faculty profile.