Contributed by Jim Hayes
The International monetary Fund (IMF) has just refused Venezuela a loan to purchase some raw materials, needed to produce medicine to tackle Covid-19, and the spokespeople for the IMF have the gall to suggest, the organisation does not take sides in the political and trade dispute involving Venezuela.
Furthermore, the IMF has just set up a trillion-dollar special funds to help nations fight the pandemic. The refusal to help is Venezuela, a deliberate action designed to harm Venezuela’s capacity to tackle the outbreak and directed against the population.
Chief of the International Monetary Fund (IMF) Kristalina Georgieva wrote a blog post on the Fund’s website; it represents the kind of generosity necessary in the midst of a global pandemic. “The IMF stands ready to mobilize its $1 trillion lending capacity to help our membership” .
Venezuela is a member of the IMF. This help is obviously selective.
Luckily, Venezuela is one of the most prepared countries. Its government has acted decisively and shut down the country, while the spread of the pandemic was still in its infancy. It has the advantage of using the widespread grass roots cooperative (Comuna) movement to organise people and distribute food and other needs. Unlike in other countries, there is little evidence of panic and a lot of people are willingly working together to overcome the threat.
Nicolas Maduro calls on the nation to act now rather than wait. Communities take a collective part in the effort.
Video from Con el Mazo Dando
But it remains that lifting its capacity to produce medicines would make it a lot easier.
Although the IMF is on paper an independent body, under the collective control of the member nations, it is really in the firm grip of Washington and the dominant US financial system. It follows the political position of that country.
The IMF has justified its stance towards Venezuela, arguing it is reacting to what it claims is ‘political uncertainty in Venezuela’.
This is the real content of its not taking sides. it does take sides by denying that the elected government is in control of the nation, even while it continues to have Simon Alejandro Zerpa Delgado, the minister of finance in Maduro’s government, as Venezuela’s representative at the IMF. why? Because self[ proclaimed prsident Juan Guaido can’t show he has majority support and carries no weight inside Venezuela.
Even when Simon Alejandro Zerpa Delgado, the minister of finance in Maduro’s government, is Venezuela’s representative at the IMF. Why? Because Guaido could not prove that he has the support of the majority of Venezuelans.
Venezuela has $400 billion worth of Special drawing rights (SDR). These are allocated to all member countries. It means that each can have a portion converted into a low interest loan when needed. Venezuela applied for $5 billion, and the IMF continues to deny this right.
What about the millions of ordinary people being threatened by the same virus that is attacking the rest of the Word? It seems that they don’t count as much as the geopolitics. Venezuelans can be sacrificed. After all, most of them keep on supporting a government that Washington doesn’t like.