From: Gerald_A_Levy@MSN.COM
Date: Thu Sep 29 2005 - 04:12:04 EDT
----- Original Message ----- From: "Jurriaan Bendien" <adsl675281@tiscali.nl> Sent: Thursday, September 29, 2005 2:25 AM Subject: Has the IMF lost its influence? This question must be assessed in terms of the sources of borrowed capital by governments. Governments have the option of borrowing money from the private sector, from other governments, or international institutions. Typically, in the past, it was more advantageous to borrow from other governments or international institutions, or, governments had no other option. As the amount of privately-owned "surplus capital" in search of an acceptable return rises, however, governments find often that they can do better credit deals in the private sector, or with other governments, rather than with international institutions which impose extra conditions. In that sense, the IMF is now getting competition from other sources of credit. Few OECD countries borrow any significant amounts from the IMF; poorer countries do so, because they lack alternatives. But as soon as they do have alternatives, the IMF becomes less popular. Jurriaan
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