Consider a typical client state of the International Monetary Fund in the traditional scheme of things, a financially troubled country we shall call Banana.
Banana's ruler, Squadron Leader Tallyman, has built up an air force of the latest fancy jets, which he can take for joyrides on the pretext that the neighbouring republic of Fresh Fruit Bunch may get uppity. This pretty much accomplishes the mission he had set for himself.
Other than this, he wants to lead the good life and bathe in the acclaim of his people, which quickly comes his way from cronies who propose exciting big dams, copper mines, steel mills, highways, and schemes to control the price of bananas on world markets.
His friends have more than flattery to offer. The projects are the sort that make it easy to leave something over for the squadron leader and, not surprisingly, he decides to have them all. They are not viable, however. The dams silt up, copper grades are too low, cracks appear in the highways and, worst of all, the banana price-fixing scheme collapses and Banana is left holding huge inventories of rotting fruit. The only goal achieved is wealth for the squadron leader.
What is more, the international reserves have been run down to buy all the necessary equipment from abroad, the trade deficit is running at 10 per cent of gross domestic product and the currency has crumbled. To prop things up, Banana's central bank starts printing money and soon inflation is in three figures.
It all collapses at last, the squadron leader runs for his helicopter, Colonel Cigar takes his place and does the only thing he can do. He calls in the IMF.
