Quote:
Originally Posted by Mianakbarshah
What is your take on this outline guys? Do I have a chance of sailing through?
Topic: IMF Bailouts Roads to Stability or Recipes for Disaster?
1. Introduction
2. Why the IMF is a recipe for disaster?
- It is a debt trap
- A form of neo-colonialism
- World powers use it to further their own agenda
- Countries cannot pursue independent foreign policy
- Countries are forced to halt all developmental initiatives
3. Policies prescribed by the IMF for their bailout programs. Are they effective? No
- Privatisation of State Owned Enterprises
- Devaluation of Currency
- Market Determined Exchange Rate
4. Pakistan as a case study
- Reduced budget for Education Sector
- Rising Trade Deficit
- Dependency Syndrome.
5. Way forward
- Harnessing the potential of Pakistan’s young population
- Promotion of Small and Medium Enterprises
- Strengthening domestic industries
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I'm not examiner & neither have I covered IMF completely. Still, in my opinion your outline is quite weak and in wrong direction. The problem in it is that most of your arguments can easily be countered and aren't of much help in proving the point. Let's see some of your points:
1. Debt trap? Country approaches IMF only when they are in financial crisis. IMF has history of countries who have completed their programs and returned to financial stability. Only, less developed countries or those with lack of proper governing structure failed to benefit from it. Further the condition of loans are discussed in advance and the country is also pushed to change its economic policies for better- which led it to disaster in first place.
2. There are many things at present which are colonial but not foreign loans.
3. Partially true. There are sometimes conditions putted by USA but they don't force you in changing FP or coerce you into doing something. For example, world powers are not in favor of Pakistan's nuclear weapons or CPEC still Pak is working on both. Our FP still remains same.
In your third main heading:
Privatization of state of owned enterprise is need of Pakistan at present. Each year millions of Rupees are wasted in them. It's more helpful for country to privatize such companies.
Don't have much idea about currency right now. But, I somewhere read that devaluation of currency is helpful for export.
Now coming to Pakistan's case:
Lowering education budget is not due to IMF's packages. It has two reasons first is our country is spending more on defense ( around 15-20%) . Second, education is devolved to provinces. It's mostly their concern.
Rising Trade deficit? That is because we didn't paid much attention to increasing our exports whereas our imports are on rise. Moreover, CPEC has given additional push to our imports. I don't see how IMF is responsible for that.
I think you took it more as foreign loans than IMF packages and your way forward confirms it too.
Now, all the above was just my point of view. You can surely disagree with that.