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Dublin: 10 °C Sunday 26 May, 2013

IMF chief Lagarde shows little sympathy for Greece

“I think more of the little kids from a school in a little village in Niger…sharing one chair for three of them,” said Christine Lagarde.

International Monetary Fund managing director Christine Lagarde
International Monetary Fund managing director Christine Lagarde
Image: Oli Scarff/PA Wire/Press Association Images

THE MANAGING DIRECTOR of the International Monetary Fund says she has more sympathy for poor African children than Greeks suffering under the country’s economic problems and austerity measures.

In an interview published in the Guardian on Saturday, Christine Lagarde said “I think more of the little kids from a school in a little village in Niger…sharing one chair for three of them. Because I think they need even more help than the people in Athens.”

Lagarde also criticised Greek citizens “who are trying to escape tax,” and said the country needs to make more of an effort to solve its economic problems.

Greece’s economy is being kept afloat on international loans provided by the European Union and the IMF, along with a harsh austerity package that is deeply unpopular with the country’s electorate.

Read: Eurozone countries ‘warned to plan for Greek exit’ – report

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Comments (61 Comments)

  • She is spot on. Greece’s problem isn’t austerity, its having to pay tax at at all…

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    • New Democracy polling ahead of Syriza in Greece – Reuters… They’ve seen what an antibailout left agenda can do to a country…

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    • As Lagarde said. They are trying to escape tax.
      This has been the trouble with Greece for a very long time.
      The Greeks attitude and indeed mentality does not conform to EU policies.
      Whether this stance is good or bad is debatable.
      The EU has had a positive effect in many ways but appear to be imposing rules which would make you wonder as to where this will all eventually lead to.

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    • She isn’t spot on at all. The tax dodgers in Greece are at the top, aided by corrupt politicians. The vast majority of Greeks are on PAYE income tax & it is these who have suffered by job losses & large wage cuts.

      It’s blaming ‘the Irish’ for the losses from property development speculation. Only a wealthy few were doing this. Most of us merely paid thru the nose for somewhere to live, either buying or renting.

      Pretty disgusting comment really from a multi-millionaire politician, falsely conflating the tax dodgers with the poor who are suffering most.

      Not to mention ‘rich’ coming from the head of an organisation that has perhaps done more than any other to impoverish the masses of the third world over its history.

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    • Spot on Mike. The groundwork has already been attempted to be laid with comments like Kenny’s we all went mad bullshit.
      The same accusation could be just as easily laid at our door if we allow it. Falsely laid.
      Wise up and vote No.

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    • Then go bail out Niger and don’t be so hypocritical…discriminating against childhood poverty, that’s ‘rich’…what she is really doing is discriminating against Greek children, before she lets them starve, otherwise she looks bad…this is so wonderfull.

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    • O’Reilly, you have read it correctly.
      Your focus on the issue is refreshing

      I notice the normal personal abuse coming at you but that’s to be expected when commenters have no argument.

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    • I know a few greek people and I was in Greece in 2006 before the recession hit, In Athens families were being squeezed so tight for taxes to fund the infrastructure for the Olympics 4 years previous that they had been forced to move out of their homes to much smaller quarters these were middle class people who all worked so I find your comment very uninformed! I can assure that things have gotten a lot worse since 2006! The standard of living in this country was at least considerably higher at that time!

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  • Mx surely you mean SOMe Greeks havent paid taxes, and some Greeks have no intention of starting. You cant generalise about any whole population.
    The only thing you can generalise about is – people who generalise are idiots.

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  • Mx 26/05/12 #

    Greeks haven’t paid taxes in Decades and have no intention of starting. Cut them out and bankrupt them.

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  • Neil 26/05/12 #

    Really Christine? Let’s have a look at the IMF and your sympathy in Niger so.

    Starvation is widespread in Niger and the country is in severe debt to the IMF and other western financiers. In order to qualify to debt reduction, the IMF insisted on many reforms which put further pressure on the people.

    E.g imposing a higher tax on fuel hit transport costs and pushed up the price of food. A push toward commercialising livestock exports damaged local livestock produce. Taxes on milk, flour and grain pushed food prices even higher. (although I think the government may have reversed this in recent years). Many water, health and veterinary services have been privatised.

    In 2005 the IMF was accused in some media of exacerbating the food crisis which prompted a review by the IMF at the time which spanned a number of months.

    Niger remains one of poorest countries in the world

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    • But if Niger didn’t have the IMF plugging the gap in it’s budget deficit then surely it would be worse off? Reforming an economy to make it competitive is never going to be easy and is always going to cause declines in living standards. But the long term goal should be getting them on to some kind of sustainable tax base so they can fund themselves going forward.

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    • Neil 26/05/12 #

      @Ryan, the reforms haven’t and aren’t working. Its made things worse, causing the extent of the famine to increase. It was the same in Malawi but it seems that no lessons were learnt.

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  • Perhaps a spade needs to be called a shovel.. If the Greeks want access to the eu and all that it entails then they need to accept the terms of eu involvement…. For example, implementing an effective taxation process, altering the expectations of its citizens in the face of overwhelming financial adversity…

    Anyway seems to me narcissus is alive and well in Greece and the journal with plenty of folks thinking that anyone in authority who tries to tells others to lower their expectations is depriving them of a god given right to a social welfare state from the age of 55….

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  • This person is an official of an organisation which is an operational arm for goldman sachs and other private sector manipulators of economies. It is entirely unlikely that she cares tuppence for African children. For her to point the finger at Greek people and accuse them of not paying their taxes is absurd coming from a representative of the front organisation for some of the biggest tax avoiders in the world. Indeed the encouragement of regulations facilitating tax avoidance and tax relief for corporations and wealthy individuals has long been part of a strategy for the impoverishment of nation states thus allowing financial interests using the cover of the IMF to offer expensive loans the repayments for which impoverih the peope of these countries.

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    • Absolutely spot on there.

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    • Have you a source for your assertion that it is an operational arm for Goldman Sachs or is it just the usual “I read it on the Internet so it must be true” crap we see around this site?

      The conspiracy theorists on here do amuse me though.

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    • Ryan Allen. You really need to catch up on your reading. Try a library. It usually can be quite helpful. Ask the staff for a reading list on the IMF.

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    • Extremely hypocritical given that those who will be working for the ESM dont have to pay income tax. They will however have to pay an internal Tax (amount not specified) to the ESM itself !!! See Article 36.5 of the ESM treaty.

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    • Well considering we are online I thought you might link to some sources rather than referring me to a library.

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    • Ryan do u simply ignore 5,000 years of human history where certain interests have done anything to gain power and control over people inclyding fcuking them over without a care in the world. People think that cause we live in the 21st century that its a thing of the past. It aint, its more prevlant than ever, its just more subversive and subtle. IMF have proven through their history that they are nothing more than a front for massive corporations who wanna control everything. Its human nature.

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    • Ryan, Bert was right to say you need to catch up on your reading, and yes, the library is a great place to start. Look up books like The Globalization of Poverty(perpetrator, you ask? None other than the IMF) While you’re at it, have a read of The True Story of the Bilderberg Group. It’ll make you angry enough that you’ll want to chew your hand off for ticking off the yes box. Ah good then, I wouldn’t have to shake the treasonous thing…but I doubt you will have a read before these next few days are up.

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    • Well said Teo. Billdeberg group meet next week in Virginna for their annual meeting which will comprise of the heads of all the major corporations of the world including finance, energy, media and our own Denis O’Brien and the major finance ministers of the world. The discussions of the meeting are secret and the only press who have even attempted to cover it would be the guardian and a few french outlets. If u say anything about it, u are immediately called a conspiracy theroist and put in the same bracket as ufos and the like. Do people think they meet up for tea and crumpets. Even when the country is getting ravaged by financial spectulators u have people refusing to believe any of this goes on. I dunno, better the devil u know i suppose.

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    • mattoid 26/05/12 #

      @Bert
      “the IMF offer expensive loans”
      I thought the whole point was that they offer loans that are below the market rate??
      But don’t let that fact spoil your rant…

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  • Well Greece pays more tax as a percentage of GDP (30.3%) than Ireland (28.2%). In fact ours is the third lowest in the EU! It’s about 7% below average and falling. (source: Shaping Ireland’s Future)

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  • I can’t agree with her sentiments in the slightest. She’s sat there in her very well paying job and openly saying that the Greeks should stop the complaining and lie back while they’re being taxed right, left and centre for money they don’t have. She’s simply demoralizing the Greek people and questioning why they won’t take austerity. BUT, she has been smart, she’s careful with her words and compares them to Africans. This allows her to simply show there are people worse off while shaming the Greek population. The Greeks have NOTHING to be embarrassed out.

    The Greek government failed the people, democracy has failed the people. The freedom they vote for has in turn ruined the country. People are losing homes. The government aren’t paying the pharmacies for medication and therefore leaving the honest workers in debt. They’ve simply had enough. I don’t agree with the path they’ve taken but i can’t sit here and blame them. To be perfectly honest they’re doing what most people in Ireland think should happen, but we don’t fight anything.

    If this woman can sit there and blatantly say this as the Greeks feel more pain than us, I wouldn’t blame them if they let themselves default and let Europe take the storm. The government are fighting between keeping Europe happy and keeping their own people happy.

    THIS is my problem with the world. The people with money are the people in charge. The governments, the ECB, the IMF, and god knows who else. These people live on a wage that could keep 10 people in work for a year on an average wage and yet it’s THESE people that have the cheek to criticize ordinary people for having nothing left??

    No wonder the word is screwed if this is what happens. F*****g a$sholes!

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  • She looks like a Bond villain, I bet if the pic was zoomed out she has a big cat on her lap :-)

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  • She doesn’t look like a woman who’d have sympathy for anybody

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  • Indeed the encouragement of regulations facilitating tax avoidance and tax relief for corporations and wealthy individuals has long been part of a strategy for the impoverishment of nation states thus allowing financial interests using the cover of the IMF to offer expensive loans the repayments for which impoverish the people of these countries further.
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  • Rich woman says: You normal people, you must pay your taxes. Rich woman does: not pay tax.

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  • Shes saying the same about us I bet, And if we vote yes she will say it louder. So vote NO.

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  • Mattoid. You also need to do your homework. I might add that the cost of a loan does not only reside in the rate of interest onIy. It also includes enforced privatisation of the public resources of the country taking the loan. Then there are the human costs. Both of these components makes a loan very expensive indeed.

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  • Just goes to show how Ireland will not be getting another cent off the IMF. Their money is needed elsewhere and we’re already 15 times over our quota of borrowing.

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    • No David, it just shows that she has more sympathy for the people in a village in Niger, than the people of Greece.
      Where does it say about us not getting another cent?

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    • Open your mind David and learn to think for yourself

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    • I think it shows up the idea that the IMF would lend to us without ECB and EC involvement, as put forward by some politicians. Remember its mandate is to help Third World countries more than Western ones.

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    • Ryan the IMF mandate is not to ‘help’ anyone, its to make a lot of money and make a few powerful people very rich.

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    • What I read from this David, is that the IMF would be more likely to lend to Ireland than it would to Greece. Even at that it’s a push. Putting words in peoples mouths is a very dangerous thing.

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    • So the Greeks are being dismissed by the EU/IMF eh? and they wouldn’t do the same to Ireland, they say? I think Davids point is well founded!

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    • @ Niamh: Well they (along with the EC and the ECB) provided this country with funds which were necessary to bring down the deficit slowly rather than overnight. So they helped us to keep our public services going. But I suppose the conspiracy theorist’s view is more appealing – after all its always easier to blame someone or something else.

      Oh and the IMF is funded by its 188 member countries.

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    • Oh yeah…silly me…of course they have the best interests of the world at heart. Ryan there is no conspiracy, they lend money to make money. They just want their money back, it doesn’t matter to them who suffers along the way.

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    • @ Niamh: And why do they want their money back? Well because it is the money of member countries who contribute to the Fund. It’s not direct aid like charitable giving, its a loan. And what happens to the money (with interest) when it is repaid? It goes into funding other countries.

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    • @Kevin, Young Fine Gael agreeing with Young Fine Gael? There’s a shocker, you should both be embarrassed by your party, they are a disgrace to the people of this country and history will judge them as such

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    • You Reacted Ha Ha!; Ah to be honest, its only been a year and a bit into government. Lets wait the full duration before throwing any stones that might see several more thrown back eh?

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    • @Kevin
      It has only been a year yeah, and FG have broken loads of their manifesto promises. Your last comment shows just how arrogant FG are as a party. If you were smart as you make out to be, you would have joined a party that actually has a future in this country!

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    • Ryan – the IMF, ECB & EC gave us money to bail out the bondholders because that was in keeping in doing what was best for the German and French economies/banks.

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    • And its looking like the begining of the end for the Shengden Pact. Following on from Sarkozys threat to pull out of the agreement Britain is now looking to draw up legislation to prevent Greek migrants entering the country should Greece pull out of the Euro.

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    • censored 26/05/12 #

      There’s no hope for you lot – David, Ryan, Kevin et al. You’re like a bunch of old men who’ve grown smugly rich and wealthy by exploiting others, and now you’re utterly devoid of any sympathy, empathy or understanding of the human condition. Worse, you’re afraid.

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  • Mattoid. ‘I thought the point was’ is not making a point. It is an indolent way of expressing an opinion. It is perfectly valid to assess the total economic and social implications of a borrowing when calculating the total cost. One should also include as a penalty to the borrower the moral criminality of this usurious organisation which also demands amongst other conditions that the natural resources of ‘client’ states are put at the disposal of political and economic allies of the organisation thus ensuring massively increased profits for them.

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  • Ryan Allen. The last reply that I sent to you seems to have gotten lost. I’m not prepared to do your home work. Get thee to a library and check Dewey classification number 322(if memory serves). If you are too lazy to do this there’s always Wikipedia. You might check the Criticism section of the IMF entry. It mentions(again, if memory serve) a book by Stiglitz. A nice librarian will fetch it for you if you ask politely. Save you making any effort at all.

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  • why not delete all my comments from now on just to teach me a lesson

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    • Cavan

      …..” they need to accept the terms of eu involvement”. So by your way of thinking Germany and France should have been kicked out when they broke the defecit rules as set out in Masstricht. Not to mention the other broken rule – issuing bailouts, also against Masstricht rules. It would appear that you suffer from selective punishment syndrome. The whole thing needs to be scrapped, and dont worry – you can never be accused of being a humanitarian.

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  • you must feel so powerful with that delete button….

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