The much awaited report of the International Monetary Fund’s independent watchdog (Independent Evaluation Office- ΙΕΟ) is out: 700 pages featuring one by one all the errors, mistakes, miscalculations in the design and implementation of the IMF’s programs in Greece, Ireland and Portugal 2010-2011 and the way it handled the crises in the eurozone.
The report looked into how the IMF handled the eurozone crisis, which began with the May 2010 bailout of Greece, but subsequently spread to Ireland, Portugal and Cyprus.
IMF’s evaluation office:
“The IMF programs had little chance to succeed in the eurozone.”
In short, the report says that
the IMF officials failed to spot the real scale of the problem
the IMF was guilty of over-optimistic forecasts
The report notes that the IMF allowed the political intervention (EU, some EU member states) and the ECB.
“From the very beginning, very serious concerns were raised about the debt sustainability and the fragility of the Greek program.”
The IEO ‘targets’ the former IMF Managing Director Dominique Strauss-Kahn for his “wrong decision to give Greece more than it should (excesive access).” Criticism is against Strauss-Kahn’s decision to fund Greece wihtout previous dept restructuring.
On technocrat level, target of the IEO is also Poul Thomsen and his team of technocrats and their false cumulative recession predictions (in 2009 they predicted recession would be 5.5% in 2012, but in fact it skyrocketed to 17%). Consequently they estimations and predictions for unemployment and growth were false too.
The IEO makes five specific recommendations, including that “the fund’s management and executive board should develop procedures to limit political meddling in the organisation’s technical analysis; that processes should be strengthened to ensure agreed procedures are followed and only changed after careful deliberation; and that there should be a renewed commitment to accountability and transparency.”
Managing Director of IMF, Christine Lagarde commented on the report saying
“Overall, the conclusion I draw is that the fund’s involvement in the euro area crisis has been a qualified success.
The crisis in the euro area was unprecedented, the fund-supported programmes had “succeeded in buying time to build firewalls, preventing the crisis from spreading, and restoring growth and market access in three out of four cases” (Ireland, Portugal and Cyprus).
The IMF managing director admitted that with the benefit of hindsight, assumptions about growth in Greece had proved much too optimistic.
“Greece, however, was unique: while initial economic targets proved overly ambitious, the programme was beset by recurrent political crises, pushback from vested interests, and severe implementation problems that led to a much deeper than expected output contraction.”
Ok, it is the number 999th time since 2013 that we hear of the IMF’s errors and false predictions and multipliers. With the IEO report that whole IMF fairy tale of 1000+1 Errors is official and sealed.
And now what?
Will they give back the pension they cut from granny since 2010?
Will they pay back the money the chronic-ill pay for his medicine?
Will they hire the one million long-time unemployed?
Will they bring back the more than 2,500 people who committed suicide?
Will they give back the dignity the three million impoverished Greeks lost in the last six years?
Or will they keep counting their errors unable to shed even a single crocodile tear for the broken lives of millions of people?
More on IEO report & Greece here [in Greek]
Already on July 18th, KTG posted a summary of the Report on Greece here: The Sever Errors of IMF in Greek Program.