The Guardian has reported that:
The International Monetary Fund today said the UK economy was on the mend after its deepest postwar recession and praised the coalition government for its hardline approach to cutting the budget deficit.
In its annual health check of Britain, the Washington-based fund said George Osborne's planned cuts in public spending were unlikely to derail growth.
I think this is about as newsworthy as reporting Alex Fergusson thinks Manchester United think MU are going to win the Premier League.
The IMF is neoliberal and always demands reduced government spending to tackle deficits.
The ConDems have done that.
The IMF say well done.
Purrlease tell us news.
OK: try this, which was Larry Elliott in the Guardian this morning:
Th[e ConDem approach] has always been a contentious strategy — owing more to orthodox neo-liberal theory than to conditions on the ground — and it looks more and more questionable as the months roll by.
Three pieces of evidence are relevant here. First, the recovery in the global economy lasted from spring 2009 to spring 2010 but is now running out of steam. Second, the outlook for the UK has deteriorated markedly since the burst of growth in the second quarter of this year. Activity in the housing market is back to the levels of spring 2009; credit flows to business have fallen for five months, high-street spending is weakening and unemployment is rising.
Finally, there is the dire state of the Irish economy, back in recession after just one quarter of expansion. The financial markets ought to be impressed by the tough fiscal stance of Brian Cowen's coalition government. In reality, long-term interest rates are going up because the markets believe — rightly — deficit reduction is being impaired by the economy's poor growth prospects.
That’s the objective reality of this, on the ground.
Oddly an IMF employee I was talking to today agreed…..
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It is interesting to note that the IMF’s top man – Managing
Director Dominique Strauss Kahn – is a former minister for Economics, Finance and Industry, in Lionel Jospin’s Socialist government.
As recently as three years ago he sought the nomination for the Socialist candidacy in the 2007 presidential election.
A French Socialist. How neo-liberal!
It’s hardly suprising the IMF are keen on George, his strategy seems to mimic their one size fits all (equally badly) Structural Adjustment Programmes see this list and contrast it with George and Daniel’s vision
As this press release shows, the IMF are a little too quick with their declarations of success.
Excerpt:
In conclusion, Pakistan is rapidly developing into a healthy and vibrant economy. The country seems well on its way to reach a higher long-run growth path. Of course, risks always remain. But the achievements of the past several years have left Pakistan much better placed to deal with adverse shocks. This leaves me to wish the government of Pakistan continued success in its endeavors and to assure you, Prime Minister, of the IMF’s continued and full support.
As for DS Kahn, its better to judge people by what they do, not what they say these days. As the French say: ‘le style,c’est l’homme’.
@paul
Hear, hear
The IMF takes a pure neo-liberal line – even more so than OECD. Read ‘Globalisation and its Discontents’ or anything more recent by Joe Stiglitz to get the lowdown on what their real agenda is.
And yes, Tim – it’s completely possible to be in the French Socialist party and a total convert to neoliberalism. The same goes for most of the centre left parties in the EU.
hmmm, as I recall Alex has acknowledged that it will most likely be blue shirts holding up the Premier League trophy this season.
Perhaps Boy George would like to take a look at the fortunes of some of the countries which were forced to follow the IMF prescriptions in the 80s/90s. I hope he likes shanty towns.