Mexico's President asked the International Monetary Find to practice self-criticism as a way of discovering how much damage its policies have caused.
Mexico’s President Andres Manuel Lopez Obrador (AMLO) Tuesday strongly criticized the International Monetary Fund (IMF), saying its policy "recipes" have increased insecurity and poverty in the country.
"All these organizations should apologize to the people of Mexico and practice self-criticism and say 'what we proposed was a failure and caused serious damage to Mexicans because we said that privatization would lead to growth and employment,'" AMLO said.
The president's statements came after the IMF said the country's gross domestic product (GDP) would only increase 0.9 percent in 2019. However, AMLO continues to insist the estimate is incorrect is wrong as forecasts predict an economic growth of two percent.
"I don't have much confidence in these organizations ... They were the ones who pushed neoliberal economics in Mexico," said Lopez Obrador who described his government as a transformation to a different economic model which is far away from privatizations and corruption.
An interesting study on how IMF conditionalities can increase corruption. Privatization of state-owned enterprises generates new concentrated rents, creating incentives for corrupt behavior and for a weak state among those who benefited from it. https://t.co/mJ5vRIa19Y— Karina Patrício (@KPatricio1) July 23, 2019
The Mexican president also held that policies that facilitated privatization in energy and educational activities were "a failure."
The IMF technocrats made Latin America believe that "globalization was the panacea and structural reforms would bring happiness to the people. God bless me," he said and emphasized that structural adjustment policies only paralyzed developing countries' economies.
In the last edition of its World Economic Outlook, the IMF argues that private investment and consumption in Mexico have slowed down as a result of confidence deterioration and increased borrowing costs, which have been triggered by policy uncertainty during the AMLO presidency.
"They are no longer going to decide on Mexico's agenda. That is over now," said AMLO, referring to the IMF, an institution that has "no moral authority"