Monday, March 21, 2011

Structural Adjustment via Democracy

"Even as traditional elites hijacked the resurgent parliamentary systems, the United States and the multilateral agencies subverted them to push through austerity programs that the authoritarian regimes they previously supported had no longer been able to impose on recalcitrant citizenries. It soon became clear that Washington and the multilateral agencies wanted the new democratic regimes to use their legitimacy to impose repressive economic adjustment programs and debt management policies.  In Argentina, for instance, the international financial institutions pressured the post-dictatorship government of Raul Alfonsin to abandon neo-Keynesian policies, implement tax reforms, liberalize trade, and privatize enterprises. When the government quailed, the World Bank suspended disbursements of a structural adjustment loan to bring it into line."

To be read in light of the outcome of the Egyptian referendum on the constitution.

No comments: