IMF and the World Bank
IMF and the World BankSomalia had an economy based on trade between small breeders and small agriculture. Despite drought, the country remained self-sufficient on alimentary product during the 60's and 70's. During the 1970's decade population transfer programs permited the development of an important commercial sector: Breeding. until 1983, breeding represented 80% of Somalia importation takings. At the beginning of the 80's the IMF and the World Bank imposed a program of reforms. This program led to the colapse of the fragil balance between Nomad and sedentary sector. One of the goal of this plan was to collect money to refund the IMF and other creditors from several debts. In 1989, the IMF loan was void because Somalia had failed to pay previous interests. Somalia had to comply with the SAP in order to have new loans. The results are well known: The collapse of the state, civil war, famine and finally the intervention of the United Nations and US soldiers (Le desordre des nations,p21).
The effects the SAP's on society are felt by the poorest. For exemple, spending on healthcare has fallen in most of the world's poorest countries since 1980. In Uganda 4$ is spent per person on healthcare compared with 23$ per person on debt repayment. Because of budget cuts, Sub-Saharan Africa is very vulnerable to basic disease such as Cholera, that are making a come back at a catastrophic pace, owing to the breakdown of water and sewage systems triggered by the economic crisis (Dark Victory,p55). The IMF encourages governments to cut backspending and to downsize government department, thus a rise in employment. the damage in Education Sub-Saharan Africa is significant. for example the percentage of 6-11 years old enrolled...
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