Just What the Hell Are the World Bank and IMF Doing in the Ukraine?

It’s NOT the Economy, stupid… it’s the Debt!

Frédéric Mousseau argues that IMF and World Bank aid packages contingent on austerity reforms will have a devastating impact on Ukrainians’ standard of living and increase poverty in the country.

“Mostly unreported as the Ukraine conflict captures headlines, international financing has played a significant role in the current conflict in

Ukraine.

“In late 2013, conflict between pro-European Union (EU) and pro-Russian Ukrainians escalated to violent levels, leading to the departure of President Viktor Yanukovych in February 2014 and prompting the greatest East-West confrontation since the Cold War…”

“… Following the installation of a pro-West government, there has been an acceleration of structural adjustment led by the international institutions along with an increase in foreign investment, aimed at further expansion of large-scale acquisitions of agricultural land by foreign companies and further corporatisation of agriculture in the country.

“The experience of structural adjustment programmes around the developing world foretells that it will increase foreign control of the Ukrainian economy as well as increase poverty and inequality. As Western powers get ready to impose sanctions on Russia for its transgressions in Ukraine, it remains unclear how programmes and conditionalities imposed by the World Bank will improve the lives of Ukrainians and build a sustainable economic future.”