IMF’s Top Economist Critical of the Fund in his Resignation Letter

in International Business

IMF’s Top Economist Critical of the Fund in his Resignation Letter

Peter Doyle, who served as an economist in the International Monetary Fund for 20 years, expresses his criticism about the organization in his resignation letter.

He describes the performance of the Fund as “incompetence” over a ten year period.

Mr. Doyle was in charge of running bailout programs for Greece, Spain and Ireland. He blames the Fund for not issuing early warnings and more sustained. He also suggests that warnings were at times actively suppressed.

He calls the process of appointing the managing director of the IMG as “tainted”. In other words, he echoes the widespread criticism that the Head of the IMF is a European appointee, while the World Bank is a US appointee.

“Even the current incumbent [Christine Lagarde] is tainted, as neither her gender, integrity, or elan can make up for the fundamental illegitimacy of the selection process.”

Decision making in the IMF is correlated with contributions to the fund. Wealthier countries such as the U.S. give the most and have the most clout. Poorer countries who often borrow from the IMF have little say. As a condition for receiving loans the IMF often imposes austerity policies. For example, Jeffrey Sach’s work shows that

“the Fund’s usual prescription is ‘budgetary belt tightening to countries who are much too poor to own belts'”

The IMF could not be reached immediately by the BBC. However, CNN reported that a Fund spokesman told it that there was nothing to substantiate Mr Doyle’s claims and that the IMF had held its own investigations into surveillance of the financial crisis.

You can read Peter Doyle’s Resignation Letter here:doyle resignation letter



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