President Lenín Moreno’s government enacts Decree 883, an IMF-backed austerity measure that eliminates fuel subsidies and causes significant fuel price increases, triggering massive indigenous-led protests that ultimately force complete withdrawal of the decree. The measure is part of IMF loan …
Lenín MorenoCONAIEInternational Monetary FundRafael Correashock-doctrineimfausterityecuadorindigenous-resistance+2 more
The European Stability Mechanism (ESM) board of governors approves a Memorandum of Understanding for Greece’s third bailout program worth up to €86 billion, specifying harsh reform policies Greece must fulfill despite Greek voters rejecting similar conditions by 61% to 39% in a referendum just …
Alexis TsiprasEuropean Stability MechanismInternational Monetary FundEuropean Central BankEuropean Commission+1 moreshock-doctrineimfausteritygreecetroika+3 more
Greek citizens vote decisively 61% to 39% to reject a referendum on accepting more Troika bailout conditions in exchange for increased austerity measures, in the first referendum held in Greece since 1974 and the only one in modern Greek history not concerning the form of government. The …
Alexis TsiprasYanis VaroufakisSyrizaEuropean CommissionInternational Monetary Fund+1 moreshock-doctrineimfausteritygreecetroika+3 more
The Eurogroup endorses Greece’s Second Economic Adjustment Programme, providing €130 billion through the European Financial Stability Facility (EFSF) mechanism along with approximately €12 billion from the IMF, running until June 2015. The EFSF ultimately disburses €141.8 billion total. …
European Financial Stability FacilityInternational Monetary FundEuropean Central BankGreek private creditorsshock-doctrineimfausteritygreecetroika+2 more
The European Commission, European Central Bank (ECB), and International Monetary Fund form a tripartite committee known as the ‘Troika’ and agree on a three-year €110 billion financial aid package for Greece in exchange for severe austerity measures outlined in a Memorandum of …
European CommissionEuropean Central BankInternational Monetary FundGeorge PapandreouAngela Merkelshock-doctrineimfausteritygreecetroika+3 more
President Adolfo Rodriguez Saá announces Argentina’s default on its foreign debt obligations to the International Monetary Fund and private creditors—the largest sovereign default in world history at that time, exceeding $100 billion. The default comes three days after the fall of President …
Adolfo Rodriguez SaáInternational Monetary FundFernando de la RúaArgentine creditorsshock-doctrineimfausterityargentinadebt-default+2 more
The Argentine government enacts emergency measures known as the ‘corralito’ (little corral), freezing bank accounts and limiting cash withdrawals to $250 per week, triggering the final stage of a devastating economic collapse driven by IMF-imposed austerity. The freeze comes after four …
International Monetary FundFernando de la RúaDomingo CavalloArgentine Central Bankshock-doctrineimfausterityargentinafinancial-crisis+2 more
The Argentine Congress passes the Zero Deficit Law under intense IMF pressure, delivering drastic cuts in public spending including 13% reductions in state salaries and pensions in a desperate attempt to satisfy creditors and maintain access to IMF loans. The law represents the culmination of four …
International Monetary FundFernando de la RúaDomingo CavalloArgentine Congressshock-doctrineimfausterityargentinastructural-adjustment+1 more
Ecuadorian President Jamil Mahuad announces the country will abandon its national currency and adopt the U.S. dollar, describing the decision as ‘a jump into the abyss’ just days before making it. Mahuad’s handling of multiple crises—floods from El Niño, the collapse of oil prices, …
Jamil MahuadGustavo NoboaCONAIEInternational Monetary FundWorld Bankshock-doctrineimfstructural-adjustmentecuadordollarization+2 more
By year’s end, the Asian Financial Crisis results in a fundamental restructuring of Southeast Asian economies. Millions lose jobs, local companies are sold at fire-sale prices to multinational corporations, and national economic policies are effectively rewritten under IMF and World Bank …
International Monetary FundWorld BankMcKinsey & CompanyMultinational CorporationsFederal Reserveasian-financial-crisisstructural-adjustmentimfeconomic-shock-therapycorporate-capture+1 more
The Russian government under Premier Sergei Kiriyenko announced a sovereign debt default, devaluation of the ruble, and a 90-day moratorium on commercial external debt payments, marking the climax of Russia’s most serious economic crisis since the 1991 Soviet collapse. Three days after …
Boris YeltsinSergei KiriyenkoInternational Monetary FundCentral Bank of RussiaRussian Governmentrussiafinancial-crisissovereign-defaultshock-therapyimf+4 more
The International Monetary Fund implements a 7 billion bailout package for South Korea, mandating sweeping economic reforms. This included forced corporate restructuring of the chaebol system, financial sector liberalization, and opening markets to foreign investors. The conditions resulted in …
International Monetary FundSouth Korean GovernmentChaebol CorporationsWorld BankAsian Development Bankimfstructural-adjustmenteconomic-shock-therapyasian-financial-crisissouth-korea+2 more
On October 15, 1997, the International Monetary Fund (IMF) announced a comprehensive $43 billion bailout package for Indonesia during the Asian Financial Crisis, contingent upon radical structural adjustment reforms. The IMF mandated a 50-point reform program that included closing 16 private banks, …
International Monetary FundSuharto GovernmentWorld BankMcKinsey & CompanyBank Indonesiaasian-financial-crisisstructural-adjustmentimfindonesiaeconomic-shock-therapy+2 more
The IMF provided a $10 billion bailout to Indonesia in November 1997, imposing stringent structural adjustment conditions that demanded banking sector reforms, public spending cuts, and market deregulation. These policies, while intended to stabilize the economy, resulted in significant social …
IMFSuharto GovernmentWorld BankMcKinsey & Companyimfstructural-adjustmenteconomic-shock-therapyasian-financial-crisisindonesia+2 more
The International Monetary Fund approved a $6.8 billion loan to Russia, the second largest loan the IMF had made at the time, following years of failed stabilization efforts and broken conditionality requirements. This was followed by an agreement in 1996 to provide a total of $10.2 billion over …
International Monetary FundBoris YeltsinBill ClintonG-7World Bank+1 moreimfrussiastructural-adjustmentconditionalityshock-therapy+4 more
Russian President Boris Yeltsin ordered the liberalization of foreign trade, prices, and currency, launching the radical ‘shock therapy’ economic transformation designed by Deputy Prime Minister Yegor Gaidar, a 35-year-old liberal economist advised by Harvard’s Jeffrey Sachs. The …
Boris YeltsinYegor GaidarJeffrey SachsHarvard UniversityInternational Monetary Fund+1 moreshock-therapyrussiashock-doctrineneoliberalismprivatization+5 more
Harvard economist Jeffrey Sachs became a formal economic advisor to Boris Yeltsin’s economic team in December 1991, after Yegor Gaidar—soon to be acting Prime Minister—contacted him in September requesting he come to Moscow to discuss Russia’s economic crisis. At that stage, Russia faced …
Jeffrey SachsBoris YeltsinMikhail GorbachevYegor GaidarGeorge H.W. Bush+3 morerussiajeffrey-sachsharvardshock-therapyforeign-policy+4 more
Opposition Jamaica Labour Party (JLP) leader Edward Seaga wins a convincing victory over Prime Minister Michael Manley, immediately abandoning democratic socialist policies and re-engaging with the IMF after Manley had severed ties in early 1980 rather than accept the Fund’s harsh conditions. …
Edward SeagaMichael ManleyInternational Monetary FundJamaica Labour PartyWorld Bankshock-doctrineimfstructural-adjustmentjamaicaregime-change+2 more