By: Jože Biščak
Recently, the missionaries of the International Monetary Fund (IMF) were on a 10-day visit to Slovenia.
The Minister of Finance, Klemen Boštjančič, could not hide his excitement because “a renowned international institution, whose reports are respected by everyone,” praised the wage reform as “an extraordinary achievement” and “the right steps in the overhaul of the wage system.” Truly remarkable, I tell you. And if we add that they were also pleased with the pension and healthcare systems, Boštjančič has every reason to be cheerful.
Leftists and apologists for the fight against capitalism grumble during such visits, wondering why this neoliberal institution is meddling in Slovenia. However, these criticisms are more about frustration that extreme Marxists do not yet control this parasitic appendage of the United Nations. This does not mean that the IMF does not promote a global leftist economic agenda since it is based on the ideas of John Keynes. This is why, a decade ago, we could read a Washington Post column by Howard Schneider intriguingly titled: “The Communists Have Taken Over the IMF!”
For instance, under Christine Lagarde’s leadership (she now heads the European Central Bank), the IMF suggested that countries tighten tax measures to accelerate economic growth. When Trump proposed reducing tax burdens, the IMF responded that too much money in the hands of those who earn it might mean they will not use it wisely (a sentiment echoed by Robert Golob before the elections). Their economists thus propose a kind of global tax since tax competition among countries drives inequality. Until a global tax is established, individual countries should address inequality by increasing taxes, adopting progressive taxation, expanding the state’s role in income redistribution, and implementing universal basic income. In a special document, they even suggested that reducing the standard of living is desirable because it would make people more equal.
The IMF has become an institution that supports socialist economic policies. This is why their economists were impressed with Slovenia.