Oxfam calls on IMF to ‘abandon austerity policy requirements’

The non-governmental organization Oxfam called on the International Monetary Fund (IMF) in a statement released today to “abandon its demands for austerity policies as the cost of living crisis increases hunger and poverty around the world”.

“87% of IMF loans to deal with the COVID-19 crisis are accompanied by the requirement of developing countries – which have been deprived of equal access to vaccines – and some of them face some of the worst humanitarian crises in the world. “To adopt new austerity measures, which will do nothing but aggravate poverty and inequality,” the NGO said.

A new Oxfam analysis reveals that “13 of the 15 IMF lending programs negotiated in the second year of the pandemic included the imposition of new austerity measures such as taxes on basic foodstuffs and fuel or cost cuts that could put “absolutely necessary public services”, the announcement continues.

In 2020, the IMF provided “emergency loans of billions to help developing countries” deal with the pandemic, “often with little or no conditions,” the NGO said.

“Recently, IMF Managing Director Kristalina Georgieva urged Europe not to jeopardize its economic recovery by suffocating it with ‘austerity.’ “in low-income countries,” adds Oxfam.

For Nabil Abdo, a political adviser at Oxfam International, “this perfectly sums up the two-pronged policy of both IMF stations: it warns rich countries against austerity, which it also imposes on lower-income countries.”

Recalling that the pandemic is not over and that poorer countries are hit hardest by rising energy and basic food prices, Nabil Abdo said the latter “need help to improve access to basic services and social protection.” and not harsh terms that kick the world while it is down. ”

According to a new analysis by Oxfam and Development Finance International (DFI), 43 of the 55 member states of the African Union are facing public spending cuts totaling $ 183 billion over the next five years.

“If these cuts are implemented, the chances of achieving the UN Sustainable Development Goals (SBA) are likely to be nullified,” Oxfam said.

“The IMF needs to suspend austerity policies on existing loans and increase access to emergency financing. It should also encourage countries to raise taxes on the richest to replenish their almost empty coffers and to reduce growing inequalities, “said Mr Abdo.

SOURCE: AMPE