The loan is not intended to restore Ukraine, it's intended to indebt Ukraine so much that it will then say: "Well, Ukraine, you have to pay back the money the IMF has lent you, you have to begin privatizing your resources."
However, Hudson does not see the austerity and privatization as an attempt to reform the Ukrainian economy, but rather as a mechanism for a wealth transfer to the United States and Europe:
It's certainly not going to be very good for the Ukrainian population, I would expect in the future a revolution to overthrow the oligarchs that came in. They are there trying to basically sell what they have to the Westerners, take the money that they get from the Americans and the Europeans, move this money immediately out of Ukraine, take their money and run, leaving Ukraine even more indebted.
This is the first time that the IMF strategy that was used toward Latin America and Africa has actually been applied to European countries, to Ireland, Greece and Ukraine. Right now they're beginning to look like the old colonized Latin America. And until they have an alternative, they're going to keep falling into the same trap.
However, as Hudson sees it, it is not possible to change this cycle within the confines of the IMF, which to him exists for the purpose of aggressive economic policy, but rather through alternative international development banks and loan institutions.
