I suggested that the excessively contractionary monetary and fiscal program could lead to political and social turmoil in Indonesia. But none of these arguments mattered. The IMF pressed ahead, demanding reductions in government spending. And so subsidies for basic necessities like food and fuel were eliminated at the very time when contractionary policies made those subsidies more desperately needed than ever. The IMF believes that the recession's end is a testament to the effectiveness of the agency's policies.
Every recession eventually ends.
Often, structures were simply covered with fresh paint and streets were cleaned. In most villages, the officials picked their own relatives as suppliers', according to Corruption Watch investigator Husni Thamrin. The World Bank rethinks its role', Business Week, April 17. New IMF Head decided Horst Koehler of Germany will take over as Head of the IMF when Michael Camdessus retires. This follows several months of bickering between the EU and USA over who should head the agency.