As Hoogvelt article discusses that credit as a means to acquire capital flows were added by the strategic implantation of nationalizing private debt. The nationalization of debt was legitimized through concepts of economic develop and national sovereignty (Hoogvelt 125). A further tactic used in debt control of the states that had been promoted by the IMF was the devaluation of the currency which effectively was a tax on the public that to alleviate a government domestic debt (Hoogvelt 125). Further compounding the problems of the developing nation were the neoliberal pressure as exerted through the IMF for states to sell off at barging prices their state owned enterprises (Hoogvelt 126). Thus we see the developing state’s role being reduced to that of legitimizing debt devaluing public assets.
Drawing off of Hoogvelt’s writings we can see some existing critiques of the IMF’s agenda of liberalization. He mentions how even IMF and World Banks economic standards, the policies prescribed and structural adjustment contracts have led to a decline in growth rates, and some states have experienced hyper inflation. Hoogvelt illustrates the risks of deregulation of financial markets by giving examples of corporate credit schemes that require have no regulation on reserve capital and how essential corporate bonds and repackaging...
... middle of paper ...
... developing may say a lot in itself. However this paper only begins to addresses the power relations of development and credit. To truly engage such a subject in an exploratory and critical manner would go well beyond the confines of this paper. As such this paper has been largely consuetude through secondary sources in the form of literature review to support arguments. A more in detail study would should continue on with an even greater breadth for the literature review but should also focus on primarily sources more, empirical data and examine in detail case studies. A study of the presupposition and power relations of liberalism and development itself should in fact be a par of the approach to this paper however this too would go beyond the confines of this paper. However such an approach would have to be an amalgamation of numerous writings or tome in itself.
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