March 09, 2006

Reuters Report about Bolivia and the IMF

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Here is an article by Reuters about Bolivia and the probable end of its dependency relationship with the IMF .

Bolivia seen likely to end IMF financing ties

The article quotes Mark Weisbrot, Co-Director at the Center for Economic Policy Research in Washington as saying:

"The need for new economic policies can be seen from the severe economic failure over the last quarter of a century," Weisbrot said in a report this week, adding Bolivia's per capita income is lower now than it was in 1978.

"It would not be surprising if the new government of Bolivia were to allow the current agreement with the IMF to expire at the end of March and not seek any renewal," he said.

The big question, Weisbrot said, is whether an agreement with the IMF will be a condition for other sources of funding -- especially the World Bank, Inter-American Development Bank and high-income governments.

"In the past, this would almost certainly have been true. This may not be true today," he said. "The power of the fund has declined drastically since the late 1990s."