ABSTRACT
Ms. Barbara Stallings’ main criticisms of stabilization programs supported by the Fund’s financial assistance are that they are inadequate to solve the problems of a country like Portugal, and that they are biased in favor of reliance on free market forces, as opposed to controls. Ms. Stallings, like some others in Portugal and elsewhere, criticizes the impact of the Fund programs on investment. Ms. Stallings charges that all Fund stabilization programs have to offer is a combination of deflation and devaluation, the burden of which falls inevitably on the workers in the form of higher unemployment, lower real wages, or both. She attributes this singlemindedness to the Fund’s preference for relying on free market forces as opposed to controls and planning which she favors. The character of the Fund is determined by its technical tasks, the principle of universal membership, and the uniform treatment of all members.”
