Waltopia has gotten into debt with other countries, and cannot repay its obligations. The International Monetary Fund (IMF) has pledged to help Waltopia repayits debt. Why might the citizens of Waltopia end up regretting the involvement of the IMF in repaying their country’s debts?
What will be an ideal response?
When a state cannot make payments on its debt, the IMF can step in and provide a short-term loan to help the country restructure its debt and budget. Referred to as structural adjustment loans, the loans are conditional on specific policies that the country must adopt, often including reducing its spending. Typically, spending cuts involve social spending and food and fuel subsidies. That is, the IMF requires that the government cut back spending on public education, health services, and support for the poor (including food and fuel subsidies). As a result of these policies, the IMF is not terribly popular in developing countries when it has to step in to keep their government from going bankrupt.
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When cutbacks have to be made, the last person hired is often the first person to go
Indicate whether this statement is true or false.
Experimental research methods are used _______________________
a) to describe some aspect of a certain variable b) to establish a cause and effect relationship c) to describe trends in education d) only in biological and physical sciences