IMF fails – Can’t enforce rules
Bryan Johnson 97, Visiting fellow at the Heritage Foundation, 5/6/97, “The International Monetary Fund: Outdated, Ineffective, andUnnecessary”, https://www.heritage.org/report/the-international-monetary-fund-outdated-ineffective-andunnecessary, DOA 7/13/23/Bwitkov
The IMF fails to enforce the requirements it imposes. Even when the IMF is specific and actually manages to recommend economic policies that might encourage long-term growth, it is ineffective in holding countries accountable for violating these agreements. The IMF repeatedly has entered into agreements with countries that have a history of violating their contracts. Even when the Fund has established that a country violated reforms outlined in the loan agreement, it often will negotiate with that same country for a new or altered contract, and the loans continue.
For example, Peru entered into 17 different arrangements with the IMF between 1971 and 1977, and continues to receive money from the IMF today.21 During the same period, Peru failed to meet the conditions for most of these agreements. Instead, the government continued its self-destructive economic policies. For example, in 1971, Peru's external debt was $2.7 billion; by 1977, Peru had signed 17 agreements with the IMF, yet its external debt had soared to over $9 billion.22 Even though Peru failed to meet the conditions for these agreements, it continued to receive IMF funding.