How The IMF and World Bank Debt Trap Countries and Force them into Austerity

The International Monetary Fund (IMF) and World Bank have long been criticized for their predatory lending practices that entrap developing nations in vicious cycles of debt and economic stagnation.

These institutions frequently impose stringent conditions on borrowers, known as structural adjustment programs, which force countries to privatize key industries, slash public spending on essential services like healthcare and education, and implement harsh austerity measures.

Such policies undermine economic development and exacerbate poverty and inequality, serving the interests of wealthy creditor nations rather than genuine progress in borrowing countries.

Whistleblowers like John Perkins have exposed how the IMF and World Bank deliberately misrepresent the viability of development projects, misleading borrowers into taking on unsustainable debt burdens.

The 1997 Asian financial crisis, where the IMF strong-armed South Korea into accepting draconian restructuring conditions in…