March 3, 2005

silhouette3.JPG From the desk of Jane Galt:

Bleg II

When was the last time the IMF let a high-profile country go its own merry way to hell without lending them a ton of money to pay the fare? Has it ever happened?

Posted by Jane Galt at March 3, 2005 4:07 PM | TrackBack | Technorati inbound links
Comments
Posted by: dave on March 3, 2005 6:30 PM

Japan would be my guess. I'm pretty sure that Japan had been firmly categorized as first-world and outside the IMF's purview by the time their prolonged gentle meltdown started. Then again, it's not like the entire portfolio of the IMF would have been enough to make a dent in their crisis, anyway.

Posted by: Jacqueline on March 3, 2005 7:02 PM

It's not the countries the IMF is really helping, but the banks who lend them money.

If you owe the bank $1000 and can't pay it's your problem.

If you owe the bank $1,000,000,000 and can't pay it's the bank's problem.

Posted by: Steven Den Beste on March 3, 2005 9:01 PM

Is there a circular definition in your question? i.e. Is "high profile" in practic defined as a nation which the IMF feels needs to be propped up?

I don't recall that the IMF has been particularly interested in either Cuba or North Korea. Are they "high profile"?

[Jane, I was just told that my email address contained the "questionable content" 1 @san.rr
. That's actually part of my email address, which I've had to change to make this post.]

Posted by: Steven Den Beste on March 3, 2005 9:03 PM

[Jane, actually, there was no space between the "1" and the "@"; even when it was inline it made the post be rejected.]

Jacqueline, it goes like this:

If you owe $1000 to a bank and can't pay, you have a problem.

If you owe $1,000,000 to a bank and can't pay, the bank has a problem.

If you owe $1,000,000,000 to a bank and can't pay, the government has a problem.

Posted by: Sean Giovanello on March 4, 2005 9:47 AM

In the Asian Financial Crisis, the IMF initially did nothing to help Thailand. The financial meltdown in Thailand proved to be contagious and by the time the world took action we had the AFC...

Posted by: Giles on March 4, 2005 9:50 AM

Err -
Zimbabwe
Iraq
Nairu
Congo
Germany


any others?

Posted by: Contributor A on March 4, 2005 10:30 AM

Giles, could you explain? I don't recall Germany (or really any of those others, though I don't know much about most of them) being IMF supplicants who asked for a bailout, were turned down because they didn't meet the IMF's criteria, and being left to the dogs.

Posted by: jimbo on March 4, 2005 7:52 PM

Giles,

Ok, I'm confused: I thought "nairu" stood for "non accerating inflation rate of unemployment". (which just shows you what a geek I am) - are you telling me there is (or was) an actual country named that? (or is it a typo?)

Posted by: Giles on March 5, 2005 9:29 AM

Yep - its Nauru - smallest independent republic in the world.

A - didnt knw that supplication was a requirement.

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