Image right: Lagarde and Moreno at Davos Economic Forum, January 2019
While Moreno’s predecessor Rafael Correa had denounced the IMF and World Bank as “neo-colonialist vampires who want to suck little countries of their sovereignty”, Lenin Moreno has fully embraced the IMF’s neoliberal agenda.
In March 2019, a 4.2 billion dollar “fake loan” agreement with the IMF was implemented, resulting in mass poverty through statutory wage reductions, dismissals of teachers and health workers, a spree of privatization of social services, a process of engineered inflation.
Extending the IMF Role to the EU
The IMF has a longstanding record of triggering poverty and economic destruction under its so-called “Structural Adjustment Programme” (SAP). The latter consists in the imposition of drastic macroeconomic reforms as a condition for debt relief on more than 100 developing countries.
Will this model of macro-economic management be extended to all the member states of the European Union?
What is the broader relevance of the Ecuador crisis? How does it affect the European Union? What will be Lagarde’s role at the ECB?