Madam, – In response to David Buttimer’s letter (November 5th), I wish to point out that although this is a well thought out and clear position, it neglects to fully outline the implications of receiving IMF support.
Consistent with the age old rule “if it seems too good to be true, it probably is”, it must be understood that IMF support comes with conditions.
The IMF is far from an altruistic organisation even if it was originally founded in the interest of the greater good.
Since 1997 the IMF has made publicly available information on its conditionality requirements which includes privatisation as a standard condition of its structural adjustment lending. While it is argued that privatisation improves efficiency of service and increases attention to customer needs, the reality is that these efficiency enhancing effects are not as powerful in practice as in theory.
I therefore urge caution in recommending IMF support for our country. The irreversible consequences of privatising public services and/or natural resources would have enormous social, economic and political implications.
Be careful for what you wish for. – Yours, etc,