Dr House wrote:I've always wondered why the developing world has not simply refused to take loaded IMF loans.
You are certainly correct in that they should refuse the IMF by all means - that darned organisation has obstructed progress for too long.
In fact member countries
are increasingly rebuffing World Bank and IMF programmes as it becomes more and more apparent how disastrous their ideology was.
The reason for developing countries not being able to completely refuse the IMF could become somewhat clearer if we take the actual example of Venezuela and Ecuador trying to leave the organisation in 2007. The Venezuelan government was forced to back down from an immediate exit because their sovereign bond contracts require IMF membership. They have not been able to leave to this day.
Ecuador's Rafael Correa seemed to be more successful when he declared the World Bank's country representative persona non grata in April of the same year. He declared Ecuador's $750 million of debt illegitimate and demanded the World Bank to renegotiate. In the end he also had to succumb to international pressure, pay off part of the debt and was only able to defiantly quip: "We don't want to hear anything more from that international bureaucracy."
There are also examples of African countries' protest to be found: we could take a look at Tanzania's refusal to privatise its capital's water system as a condition of both IMF support to Tanzania and for getting debt relief under the Heavily Indebted Poor Countries initiative. Under massive protest they decided to end the contract and form their own institution to replace the IMF's private British company because the private company was so incompetent and obstructing.
Then we have Mali delaying privatisation of its cotton industry because of the horrible World Bank-enforced privatisation of its state railway in 2003. Mali lost about 600 jobs in this, two-thirds of station stops closed which threatened the livelihood of thousands who live along the route of the railway and depend on these travelling customers. When a railway engineer and former director of the African Railway Institute in Brazzaville loudly voiced his discontent and led a public campaign for "the return of the rail to the people of Mali", he was immediately laid off.
These are all good examples of the heavy pressure both governments and individual citizens are subjected to by the IMF and the World Bank. Refusing these organisations is both a bold and grave move that cannot be made easily and without full determination. That might be closest to an answer to your wonder. On this note:
"The interests of the IMF represent the big international interests that seem to be established and concentrated in Wall Street."(Che Guevara)