By Jennifer Lin
The World Bank (WB) and the International Monetary Fund (IMF) are the financial arms of U.S. imperialism. Just as the Pentagon pursues the aims of U.S. imperialism with war and occupation, the WB and the IMF achieve those ends through extortion.
These institutions were set up to keep colonized countries from developing by undermining their domestic industries and making them economically dependent on the U.S. Debtor nations are forced to export mainly plantation crops and to rely on the U.S. for grain and food imports. The U.S. government wields this dependency as an economic weapon, imposing sanctions against any nation (like Venezuela, Cuba, Iran) it perceives as a threat to its dominance in the global capitalist world order. Sanctions are an act of economic warfare that starve and impoverish workers.
IMF loans have obscenely high interest rates and include ‘structural adjustment programs’ that force debtor nations to privatize major industries and services and impose austerity measures on working and oppressed people. These include regressive taxes on the poor, cuts to wages, layoffs, and the destruction of labor unions.
The IMF is as anti-democratic as it’s anti-labor. The U.S. has sole veto power in both institutions and loans disproportionately to countries with repressive governments. The U.S. did not loan to Chile when it was governed by democratically-elected President Allende—that is, until he was overthrown by a U.S. backed military coup and the authoritarian Pinochet regime came to power. Under the military dictatorship of Somoza, Nicaragua received generous loans, but when the revolutionary Sandinista government rose to power, the U.S. imposed a trade embargo against the country.
The WB and IMF perpetuate the legacy of colonialism
So called “developing nations” suffer from poverty because they have been purposefully underdeveloped by centuries of colonial control. U.S. financial elites use the WB and the IMF to trap these nations in a vicious cycle of unsustainable debt. But the workers of the world have always been opposed to these heinous institutions. Since 2018 alone, the people of Argentina, the Czech Republic, Ecuador, Egypt, Haiti, Jordan, Morocco, Pakistan, Sudan, Tunisia, and other countries have taken to the streets in protest. They refuse to be repressed by institutions designed only to protect the rich.
Working class people, who are most directly impacted by the IMF and WB, do not currently have a say regarding their policies. Until the IMF and the WB are collectively controlled by workers, they will continue to be weaponized by the rich to further oppress the global working class.