THE International Monetary Fund (IMF) was established as a specialized UN agency to protect currency exchange rate after World War II. IMF cooperates with World Bank to provide economic consultancy and loans to countries in order to maintain global economic balance. The Fund sets out is financial and economic policies merely on ideological and political basis and its spending is controlled by the directives of those in power in countries such as the United States. Subsequently, the IMF puts certain conditions and plans before giving loans. It also imposes certain mechanisms on countries to spend the aid. The major problem is that countries that receive loans would have to stay subservient to IMF members having high voting powers, depending on the volume of shares they have in the Fund. The US, for example, holds a 23 percent stake in the Fund and the highest voting power while the European Union countries together have 19 percent. Thus we can say America and Europe can determine the future of the world. The danger does not stop there. There is an informal agreement on appointment to top posts. The president of IMF would always be a European while the president of World Bank would always be an American. We have seen these appointments throughout the past and this was no coincidence. Some of the conditions put by IMF before giving loans are that the government should reduce spending by cutting down on social welfare, increase taxes and lift subsidies on food and fuel. Privatization of public corporations and essential services such as health, education and housing is another important condition to reduce the exchange rate of the national currency. At the same time they demand opening up of the market, encourage foreign investment and promote austerity measures, which according to a former American senior economist at the World Bank, Joseph Stiglitz, represents the worst economic management. Stiglitz, who was president of the American Economic Advisers' Council during the Clinton presidency, has warned against a number of crimes committed by IMF against humanity. Austerity reduces production, bring down growth, increases unemployment, reduces wages and make people race to get jobs while social services are cut widening inequality. Even the condition of privatization has caused human catastrophes and tragedies, especially in Third World countries. Even after all these negative consequences the IMF blindly believes that its economic policies would bring money to markets automatically. If we study IMF's development programs across the world, we can easily understand that it does not want to eradicate poverty. On the other hand, its main objective is to put its control on the economies of countries and loot their natural wealth and resources. The most exciting thing is that economist Stiglitz had to engage in a number of battles while working at the White House in order to combat the government's hypocrisy but he did not succeed in that attempt as America's commercial and financial interests were more significant than cancelling some of IMF's resolutions controlled and endorsed by Washington. Mackenzie Company plays a significant role in implementing IMF's agenda in different countries that take its loans. This company also controls economic decisions in many developing countries while its consultants influence major companies around the world. After watching all these developments we cannot pretend that we don't know the suspicious role being played by IMF, its relations with financial crises in Lebanon, Egypt, Greece and other countries and its strenuous efforts to create chaos and confusion in Germany. Some of the economic reforms proposed by IMF to resolve Germany's crisis were encouraging women to work, allowing more foreign immigrants to enter the country and delaying the retirement age. These scenes appear not only in Western countries but also in the Arab world. As a result of these negative developments, many countries and people have lost their confidence in IMF. However, we should know that China was able to overcome its economic crises by gradually shifting to a free economic system. We cannot forget a big mistake made by IMF in 2013 when it predicted a deficit in the Kingdom's national budget while it posted a surplus of SR206 billion. Arab countries can solve their problems and achieve progress by taking responsibility to build their future, establishing effective governments, an independent judiciary, democratic systems with transparency and openness and by fighting corruption. Economic crises in the Middle East do not occur accidentally but are planned and implemented by colonialist powers and IMF plays a dubious role in this dirty game.
