Before 1980, when the World Bank and IMF set out to rearrange the economies of developing nations, nearly all of them adhered to Keynesianism or socialism.

May 9, 2015

"Before 1980, when the World Bank and IMF set out to rearrange the economies of developing nations, nearly all of them adhered to Keynesianism or socialism. Following the "import-substitution model," they built locally a protective wall of tariffs and capital controls. In those supposed economic dark ages, spanning roughly from 1960 to 1980, per capita income grew by 73 percent in Latin America and by 34 percent in Africa. By comparison, since 1980, Latin American income growth has slowed to a virtual halt, to less than 6 percent over twenty years, while African incomes have declined by 23 percent. The IMF itself, in a statement accompanying its April 2000 "World Economic Outlook" report, noted that "in recent decades, too many countries, and nearly one-fifth of the world population, have regressed. This is arguably one of the greatest economic failures of the 20th Century."

 

Source: Palast, Gregory. "Resolved to ruin: Resolved to ruin: the World Bank/IMF takeover in four easy steps." Harper's, March 2003. http://harpers.org/archive/2003/03/resolved-to-ruin/

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