In 2009 the military overthrew the government of Honduras, removing democratically elected President Zelaya from his home at gunpoint and flying him out of the country. Chiquita Brands International Inc. (formerly United Fruit) and Dole Food Company have been implicated in sponsoring the coup in response to Zelaya’s plan to increase the minimum wage in Honduras by 60%, which they complained would cut into corporate profits.
The new military government was not recognized by most of the international community, while the US refused to call Zelaya’s overthrow a “coup”.
Within months, the IMF offered the military regime millions of dollars, with the regime committing to deep macroeconomic reforms, including privatization, social spending cuts, freezing pubic sector wages as well as mass layoffs, and pension reforms; all under the pretest of decreasing national debt. The reforms have worsened poverty and misery for the people of Honduras beyond measure.
Sound familiar?
In 1983, Major General Muhammadu Buhari seized power in Nigeria in a coup d’etat. The military regime was immediately pressured by the IMF to implement harsh austerity measures; devaluation of the currency, drastic cuts in social spending, suspending subsidies, raising fuel prices, and widespread privatization; and Buhari was committed to obey all of this.
Sound familiar?
Well, here is the part that doesn’t sound familiar…Buhari had overthrown Shehu Shagari, who was also committed to IMF Austerity measures, because he had been unsuccessful implementing the reforms, and it was believed a military dictator could do it more efficiently, but when he tried to promote the same agenda, he was himself overthrown 2 year later.
In 1999, the IMF suspended its relationship with Pakistan because the government failed to implement the conditions of previous agreements. By October of that year, there was a military coup. The new regime immediately began implementation of roughly 30 IMF-ordered reforms, including the removal of public subsidies and exemptions, cutting social spending, raising fuel prices, and privatization of state-owned enterprises to attract foreign investors. The military government did all of this very quickly to “boost the confidence of investors” and to earn “credibility” with the IMF.
Sound familiar?