Who in Ukraine Will Benefit From an IMF Bailout?

This is an important, nitty-gritty discussion of the grim prospects for Ukraine under the tender ministrations of the IMF from economists Jeffrey Sommers and Michael Hudson. Unlike many TV segments on social and economic issues, this one packs a lot of information into a short time frame. If you are time pressed, you can read the transcript here. A key section:

HUDSON: The objective of IMF loans is to deindustrialize the economy. It is to force the economy–meaning the government when you say the economy–the government has to pay the IMF loan by privatizing whatever remains in the public domain. The Westerners want to buy the Ukrainian farmland. They want to buy the public utilities. They want to buy the roads. They want to buy the ports. And all of this is going to be sold at a very low price to the Westerners, and the price that the Westerners pay will be turned over to the Ukrainian government, that then will turn it back to the Ukraine. So whatever the West gives Ukraine will immediately be taken back.

Be sure to listen to this illuminating case study of what an IMF bailout really means.

This piece is cross-posted from Naked Capitalism with permission.

One Response to "Who in Ukraine Will Benefit From an IMF Bailout?"

  1. margsview   March 25, 2014 at 5:51 am

    Your exactly right, and some wonder why the Ukrainians seem so unaware of their true choices. If they further ties with the EU/US their country will become a ghost land leaving most to either emigrate or remain trying to survive. Some Western countries are claiming to be sending funds to aid/assist Ukrainians, not so. Reports are circulating that Ukrainian banks have instituted freezes on customer accounts. One banks is said to first allow withdrawals of only 32 dollars a day ( it was later increased to 100 dollars). Soon privatization will throw many in to further poverty.

    The other choice is for Ukrainians to remain in a stalemate, having to deal with Russia through new but still corrupt officials. Not much of choice many would think, but corrupt politicians are far easier to remove than multinational trade deals…….and far less devastating as many Greeks will attest to.