The IMF Crisis In Russia

During the early 1990 's, particularly around the end of 1991 the world witnessed the meteoric crumbling of the Soviet Union giving way to what would ultimately be called the Russian Federation. The situation in post cold war Russia was rapidly deteriorating both economically and politically. The leader of the communist regime at the time, Mikhail Gorbachev, was receiving increasing internal pressure to resign and external pressure from the West to democratize. On one side the old communist guard was pushing Gorbachev to stay course with the communist agenda. On the other an increasing movement to democratize Russia began to foment by the newly elected parliament leader Boris Yeltzsin.

Amid the political unrest was the concern over …show more content…
There were a multiplicity of reasons why the IMF loan packages were fraught with failure from the outset. Not the least of which being the rampant corruption of the Russian oligarchy deeply entrenched within the tumultuous political system or the compete lack of oversight and vision on the part of the IMF officials involved in loan dispersion(Rutland, …show more content…
Fingers were pointed at the IMF for its poor economic advice and promotion of privatization, which many experts agree lead to corrupt business deals and rigged auctions(Lawhead, Horowitz & Poe, 2007).

In conclusion the blundered loan packages of the IMF to Russia are symptomatic of a systemic narcissism that seems to pervade all International Monetary Fund projects. The egocentric belief that a one size fits all solution to intricately nuanced problems in diverse cultural and socioeconomic situations. The idea that these cookie cutter solutions would somehow ameliorate the need for lasting change, through education and enrichment of the general population is a naive and ludicrous