For decades, the International Monetary Fund (IMF), along with the World Bank, has facilitated and engineered "structural adjustment" in developing countries. This comes in the form of a set of corporate-oriented, market fundamentalist policies including “slashing of government budgets”, sale of government assets to local elites and foreign corporations ("privatization"), deregulation of the economy, and promoting exports and trade. The Brettonwoods institutions (World Bank and IMF) hold the “key” to the “growth and development” of all countries of the world, especially the developing countries including Nigeria . Any country that fails to work with the IMF and World Bank is doomed.

The World Bank always has a big barn of money to lend out to borrowers, whether they are willing or not. Nigeria is today a very friendly and willing borrower of the World Bank. No one has ensured and contributed to Nigeria ’s “borrower” status than the “founder and father of modern Nigeria ”, the former Presdent Olusegun Obasanjo (OBJ). OBJ it was, during his first time out as military ruler (from 1976-1979), who borrowed the first chunk of billions from the IMF/World Bank. Since the oil boom years under Yakubu Gowon, the Washington do-gooders had been “begging” and pressuring Nigeria to take loans. Gowon refused, but OBJ opened the gate for free loans to Nigeria . The successive rulers and “leaders” after 1979 continued to borrow and borrow, piling up a huge debt without thinking of how to pay back. It took OBJ’s second coming to deal with the lenders in a “meaningful way”. And pronto, our debts were paid back in one fell swoop!

I am not an economist, but I find it hard to understand that a borrower “X” borrows N10 from lender “Y”, after over two decades, over N20 is paid back to “Y” by “X”, yet “X” still owed “Y” N30! But who are we to understand this “economic” or “banking” logic? My teacher in university once concluded that IMF and World Bank always have a “credit facility set aside” for Nigeria to “draw from” because Nigeria has the “capacity to pay”. After all, crude “dey flow yanfu-yanfu for Niger Delta”. My teacher also wondered why other African countries like Niger, Burkina Faso, Chad etc, were always begging to get loans, but could not get (well, that was then…today, Chad can easily “obtain” loans as they now have crude oil and the “capacity to pay back”). My teacher also added that with our resources, Nigeria should have been lending to African countries and the World Bank, but at a higher interest to the latter. But is it easy? Why should I choose to lend when I’d rather borrow cheaply?

My poor teacher’s instinct about the World Bank and IMF is that the institutions spread nothing but poverty among poor countries, while they declared profits every year. My teacher’s views are echoed by one Robert Weismann. Weisman says “IMF policies have left shattered economies around the world, consigned untold millions to poverty, and directly and indirectly destroyed social welfare systems, including healthcare and education systems, throughout much of the developing world”. Weismann adds that “In the last few years, the IMF has seen a remarkable, quiet revolt against its power, influence and policies. Middle-income countries in Asia and Latin America have paid off their debts to the Fund, and announced they won't borrow from the Fund any more. That move follows a string of high-profile Fund failures -- interventions in economic crises (caused in no small part by IMF recommendations for countries to deregulate their financial systems) made drastically worse by Fund advice”.*

But I bet such Asian and Latin American leaders that are calling the bluff of IMF are not “smart”. Why should they not take free loans? Hugo Chavez is a fool to have walked out on IMF, offering to rather give IMF credit if they (IMF) want to borrow. OBJ remains the “smartest” Nigerian leader in his dealings with the Brettonwoods Institutions. On his second coming, he mended and solidified the relationship with them! He quickly paid back the loans Nigeria owed, and the comments of the World Bank and IMF on Nigeria changed from the negative to positive. Even though OBJ has left, there is today a lot of money set aside by the “generous” financial institutions for Nigeria to borrow, but this time the conditions are very “mild”, talking about “longer moratorium” and “low interest” loans. Yes, Nigeria ’s economy began to get really good “ratings” from Goldman Sachs, Fitch…etc. After each “high” rating, OBJ and his “economic team” usually rushed to Aso Rock to celebrate the “excellent” ratings and clink glasses on behalf of the majority of Nigerian masses who are dying in poverty.

In fact, the IMF and World Bank can see through to the year 2020, when Nigeria shall be one of the “top 20” economies of the world. Unemployment does not matter, industrial capacity under-utilization matters not, the poverty in Nigeria does not matter. Let’s all jubilate and thank OBJ, without whose “smartness”, we cannot have a “good” rating by Goldman Sachs, or filth (sorry, Fitch). Because of these strong ties with the Washington financial twins, two of Nigeria ’s daughters have been rewarded with big positions in the World Bank. No doubt the loans will continue to flow, oil too will continue to flow, and we will continue to “service” the loans. And Nigeria ’s economy will continue to get “excellent” ratings from the IMFs, the Goldman Sachs and the Filths! All hail the “father” and “founder” of “modern Nigeria ”! Amen!!

* ROBERT WEISSMAN “No Sex, Still a Scandal at the IMF”. http://www.counterpunch.org/weissman10032007.html

Robot  Villager

# 1 For decades, the International Monetary Fund (IMF), along with the World Bank, has facilitated an...Read the full article. Posted by Robot| 21.10.2007 20:33

igwe  Villager

# 2 Even though OBJ has left, there is today a lot of money set aside by the “generous” financial institutions for Nigeria to borrow, but this time the conditions are very “mild”, talking about “longer moratorium” and “low interest” loans. Yes, Nigeria ’s economy began to get really good “ratings” from Goldman Sachs, Fitch…etc. After each “high” rating, OBJ and his “economic team” usually rushed to Aso Rock to celebrate the “excellent” ratings and clink glasses on behalf of the majority of Nigerian masses who are dying in poverty. If the excellence of an economy comes from those western, neo-colonial, financial institutions, the result is always an economy in which more than 70% live in abject poverty. But long live "excellence"! Posted by igwe| 21.10.2007 22:04

DeepThought  Villager

# 3 I didn't think an article could be more revolting than that of one good Dr or the utterances of Dr Watson. Reading articles like these actually make me want to believe Watson. This article is so revolting I can't even find the strenght to puke Posted by DeepThought| 21.10.2007 22:38

Dele4you  Villager

# 4 Hi, brother, these are challenging thoughts. You are also beeing metaphoric. Nice piece though, very nice and interesting piece Dele Posted by Dele4you| 23.10.2007 03:52

Mikky jaga  Villager

# 5 From the Taxman, the Hangman and the Money lender, Good Lord deliver us: Aaameen Posted by Mikky jaga| 23.10.2007 05:26

Afeni  Villager

# 6 Every country that has implemented IMF and World Bank Policies has been rewarded with extreme income inequality. Nigeria should seriously consider doing things the China-route which allows us to build up our infrastructure before opening our markets. Posted by Afeni| 23.10.2007 05:41