How the IMF Debt Trapped Argentina Leading to Skyrocketing Inflation and Poverty

Argentina’s long-standing relationship with the International Monetary Fund (IMF) has been characterized by a cycle of debt, economic crises, and controversial policy prescriptions that many argue have trapped the country in a perpetual state of financial instability. This pattern of debt entrapment has its roots in decades of IMF involvement and has had profound effects on Argentina’s economy and society.

The debt trap cycle began in earnest during the 1990s when Argentina implemented IMF-backed neoliberal reforms. These policies, while initially seeming to stabilize the economy, ultimately led to a severe economic crisis in 2001. Following this crisis, Argentina defaulted on a $95 billion debt, marking a turning point in its relationship with international creditors.

The IMF’s role in Argentina’s debt trap:

Policy Conditionality: IMF loans often come with strict conditions that require borrowing countries to implement specific economic policies. These policies…