IMF Losing Credibility

Furthering the subplot of Jeffrey Sachs, at a 1993 "transition and reform" meeting in Washington, Sachs surprised the gathered intellectuals and economists with a plea for more international aid with fewer conditions and less interference. He accused the IMF and WB of operating out of self-interest, despite their raison d'etre of supporting failing economies. He was applauded at the conference and, after losing his position with the IMF, went on to focus on developing countries escaping debt.

At the same conference, another speaker named Williamson presented a paper on the role of carefully constructed crises in 'helping' developing economies along their route to free market capitalism. Around the same time, one of the leading administrators of the World Bank suggested that cutting aid (or threatening to) was the most direct means of creating such a targeted crisis.

A former IMF staffer Davison Budhoo issued a public letter accusing the IMF of malpractice and deceit, like Klein even comparing their tactics to torture. But his protest was quieted and forgotten. The use of such 'torture' (with proper economic goals) was now, it seemed, the party line.