- Dec 23, 2010
If I understand correctly, Venezuela currently doesn't have an IMF bailout since their previous one was repaid. So the flip-side to becoming Argentina with IMF backing is Venezuela. Damned if you do, damned if you don't.Take a look at what happened to Argentina yesterday before you wish for a IMF bailout.
Even if the IMF's "recipe" is correct in any particular case, and the evidence on that isn't great, IMF structural reform programs don't stick if the reforms aren't supported (or at least believed to be necessary) by a reasonable proportion of the population. That would be highly unlikely to be the case in South Africa.