historyNo Comments


The IMF and WB introduced the following conditionality’s aimed at changing the economies of LDCs to be a capitalist economy.

1.To allow trade liberalization and foreign exchange; whereby the government of the LDCs is forced not to control the prices and abolish the price commission so that the prices should adjust themselves in the world market basing on the law of supply and demand.

2.To devalue the currencies so as to attract more investors in countries and more buyers of goods from countries concern, but also devalue of currency aimed to make the currency of the LDC s at least to match with the capitalist economy.

3. To control government budget deficit by reducing government expenditures like provision of social services, buying of expensive cars of leaders etc.

4.The government of LDCs should increase taxes by charging public goods and services highly.

5.The government of the LDCs must reduce their expenditures on provision of social services like in education, water supply, and electricity by introducing cost sharing between the government and people with general public concern with social services.

6. To allow and introduce western democracy or liberal democracy led to existence of multiparty and its features.

7. To allow redundancy of works. This is done by the IMF and WB to force the government of LDCs to privatize government parastatals and reduce workers from civil servants in order to control the budget of the country, reducing budget deficient and controlling over expenditures.

8.To allow privatization policy; hence the government of LDCs are forced to privatize their economy in the countries for the foreign investors such as agriculture, mining sectors all these is done by welcoming foreign investors to invest tin different economies sectors.

Be the first to post a comment.

Add a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Content is protected !!