Why is the IMF So Dreaded?

No! Not the IMF! Anything But the IMF! The acronym IMF tends to bring about a sense of doom and woe. It is often spoken of only in the context of economic turmoil and is usually seen as an unfavorable organization from which governments may borrow. But why is the IMF so dreaded? In this episode we sat down for a one-on-one interview with economist, Dr. Thomson Fontaine, a Dominica national who worked at the IMF for over a decade and knows its ins and outs. It's very informative. The truth is that much of our general understanding of the IMF comes from political rhetoric and only seasonal news reporting. While the IMF has made many significant mistakes in its long history, it has improved greatly on how it engages with borrowing countries. And often, a government is compelled to turn to the IMF after poorly managing its finances to the point of insolvency. In other cases, it is a natural disaster or economic shock that sends governments to the IMF. The possibility of Antigua and Barbuda having to get into an IMF programme has been mentioned sporadically by Antigua and Barbuda's Prime Minister, Gaston Browne, since the COVID recession began in March of 2020. Earlier, the Prime Minister, who is also the Finance Minister, had been quite forceful in saying that his administration was opposed to an IMF programme. But within the last week, his tone has softened, apparently in response to favourable discussions with the IMF about the conditions of a possible future loan package. Browne is quoted by the OBSERVER as saying that if the recession persists for another year or more, then the IMF may be the only option available. In April 2020, the IMF announced the approval of three requests from Dominica, Grenada, and St Lucia for emergency financial assistance to help address the challenges posed by Covid-19. We discuss all this and more in this episode. The host is Kieron Murdoch. The guest is: Dr. Thomson Fontaine, an economist and a Dominica national. He is currently a Senior Economic and International Policy Adviser to the government of South Sudan. As an economist he worked at the International Monetary Fund (IMF) for 13 years. His work and writing have focused on growth, currency crises, development, fiscal management and debt. He has also lectured in his field at the University of Maryland, University College, and at Clemson University. This programme first aired on NewsCo Observer Radio 91.1 FM on June 6th, 2021. Get the latest news from Antigua and Barbuda at the Antigua Observer online. Appearing in the cover photo is Dr. Thomson Fontaine.