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john3859

elieve that the IMF should be abolished. This option was ser-
iously considered during the early years of the Reagan administra-
tionand Congressional Republicans raised it again in 1998. James
BakerReagan’s Secretary of the Treasurybreathed new life into
the institution when he found himself faced with the potential
bankruptcy of Mexico and serious losses for the main New York
City investment banks that held Mexican debt in 1982. He used
the IMF to impose structural adjustment on Mexico and protect
the New York bankers from default. This practice of prioritizing the
needs of the banks and ?nancial institutions while diminishing the
standard of living of the debtor country had already been pion-
eered during the New York City debt crisis. In the international
73
The Neoliberal State
context this meant extracting surpluses from impoverished Third
World populations in order to pay o? the international bankers.
‘What a peculiar world’Stiglitz quizzically r [link widoczny dla zalogowanych][link widoczny dla zalogowanych]rks‘in which the
poor countries are in e?ect subsidizing the richest.’ Even Chile��
the exemplar of ‘pure’ neoliberal practices after 1975��got hit in
this way in 1982�3with the result that gross domestic product fell
by nearly 14 per cent and unemployment shot yilai:
[link widoczny dla zalogowanych]

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