Sachs predicts IMF will fail in Brazil
Reuters, Monday, October 12, 1998 at 08:37
SINGAPORE, Oct 12 (Reuters) - U.S. economist Jeffrey Sachs
resumed his attacks on the International Monetary Fund on
Monday, predicting an immiment bail-out package for Brazil
would be a failure.
He told reporters the package looked a lot like those for
Indonesia, South Korea, Thailand and Russia -- which totalled
well over $100 billion -- which he said had not come close to
meeting their objectives.
The IMF, he predicted, would impose its usual conditions
resulting in a lot of public money trying to defend an
indefensible exchange rate through super high interest rates
and tightened fiscal policies.
"You send the country into a recession and you put in
public money that helps private creditors get their funds out,"
he said.
"If that what we see in Brazil, it would be an amazing
testimony to the lack of real reform of the institution during
this year and the lack of a new concept," Sachs said.
The Harvard economist said his biggest disappointment was
the failure of the United States and the IMF to make any
significant proposals during the IMF annual meeting in
Washington last week for the restructuring of the international
system. "We ended up at the end of the (U.S.) Congressional
term with no real ideas about new approaches other than to give
the IMF more money despite its failure throughout the entire
year," Sachs said. -- Singapore newsroom (65) 870-3843; Fax
(65) 776-8112
-- Email: singapore.newsroom@reuters.com
Copyright 1998, Reuters News Service |
