What Do the World Bank and IMF Have to Do With the Ukraine Conflict?

[unhappycamper]

http://www.ipsnews.net/2014/08/what-do-the-world-bank-and-imf-have-to-do-with-the-ukraine-conflict/



In this column, Frédéric Mousseau, Policy Directory of the Oakland Institute and co-author of the report ‘Walking on the West Side: the World Bank and the IMF in the Ukraine Conflict’, argues that IMF and World Bank aid packages contingent on austerity reforms will have a devastating impact on Ukrainians’ standard of living and increase poverty in the country.

What Do the World Bank and IMF Have to Do With the Ukraine Conflict?
By Frederic Mousseau

OAKLAND, United States, Aug 12 2014 (IPS) - Mostly unreported as the Ukraine conflict captures headlines, international financing has played a significant role in the current conflict in Ukraine.

In late 2013, conflict between pro-European Union (EU) and pro-Russian Ukrainians escalated to violent levels, leading to the departure of President Viktor Yanukovych in February 2014 and prompting the greatest East-West confrontation since the Cold War.

~snip~

The relationship with international financial institutions changed swiftly under the pro-EU government put in place at the end of February 2014 which went for the multi-million dollar IMF package in May 2014.

Announcing a 3.5 billion dollars aid programme on May 22, World Bank president Jim Yong Kim lauded the Ukrainian authorities for developing a comprehensive programme of reforms, and their commitment to carry it out with support from the World Bank Group. He failed to mention the neo-liberal conditions imposed by the Bank to lend money, including that the government limit its own power by removing restrictions that hinder competition and limiting the role of state control in economic activities.

[djean111]

1. Yes, who would not choose austerity? Easier for us to hiss at Putin.

No, I am not a Putin lover. But surely, it is understandable that anyone at all would opt out of the Austerity Police. Yeah, Putin is taking advantage of that, but the World Bank set up the scenario.

I think austerity is coming here, on little cat's feet, unless we start electing real progressives. A lot of them. But our government is pretty much priced out of the ordinary citizens' reach.