Great Expectations: Is the IMF turning words into action on inequality?

Mariotti, Chiara; Galasso, Nick; Daar, Nadia

doi:10.21201/2017.0872

Cited by 3 publications

(3 citation statements)

References 18 publications

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“…40 Although the Fund has made strides in its own research and discourse, sounding the alarm bells on inequality, it has remained insistent on recommending harmful austerity policies in the aftermath of crises. 41 The proponents of such policies argue that fiscal consolidation stabilizes the debt of economies and promotes fiscal sustainability. They also argue that committing to undertake fiscal consolidation not only boosts the confidence of investors and international financial markets in a country's ability to repay its debts, but also has the potential to lower borrowing costs.…”

Section: Unpacking Fiscal Consolidationmentioning

confidence: 99%

Adding Fuel to Fire: How IMF demands for austerity will drive up inequality worldwide

Tamale¹

2021

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The COVID-19 pandemic has dealt a huge blow to every country, and many governments have struggled to meet their populations’ urgent needs during the crisis. The International Monetary Fund (IMF) has stepped in to offer extra support to a large number of countries during the pandemic. However, Oxfam’s analysis shows that as of 15 March 2021, 85% of the 107 COVID-19 loans negotiated between the IMF and 85 governments indicate plans to undertake austerity once the health crisis abates. The findings in this briefing paper show that the IMF is systematically encouraging countries to adopt austerity measures once the pandemic subsides, risking a severe spike in already increased inequality levels. A variety of studies have revealed the uneven distribution of the burden of austerity, which is more likely to be shouldered by women, low-income households and vulnerable groups, while the wealth of the richest people increases. Oxfam joins global institutions and civil society in urging governments worldwide and the IMF to focus their energies instead on a people-centred, just and equal recovery that will fight inequality and not fuel it. Austerity will not ‘build back better’.

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Section: Unpacking Fiscal Consolidationmentioning

confidence: 99%

Adding Fuel to Fire: How IMF demands for austerity will drive up inequality worldwide

Tamale¹

2021

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“…Under the leadership of Christine Lagarde (from 2011 to 2019), the IMF also undertook more research on the impact of gender inequality on growth and development, providing more empirical evidence on the negative correlation between the two. 81 It has even made commitments to support the Sustainable Development Goals (SDGs), including to 'deepen gender inclusion' in pursuit of SDG 5. The 2010/2011 uprisings in the Middle East and North Africa (MENA) region accelerated the IMF's shift in thinking.…”

Section: Box 5: the Imf Functionsmentioning

confidence: 99%

The IMF and Lebanon: The long road ahead – An assessment of how Lebanon’s economy may be stabilized while battling a triple crisis and recovering from a deadly blast

Abdo¹,

Abed²,

Ayoub³

et al. 2020

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Lebanon is extremely unequal and has been rocked by massive protests in recent months. The country is facing a financial crisis and is in talks with the International Monetary Fund (IMF) about a potential bailout programme. Other IMF programmes in the region have focused on austerity and have driven increases in poverty and inequality. A business-as-usual approach by the IMF in Lebanon could have serious and far-reaching adverse impacts. Any potential policies pushed by the IMF in Lebanon must first be shown not to impact negatively on economic and gender inequalities, and must be drawn up transparently in consultation with local communities, civil society organizations and social movements.

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“…83 However, the Fund's engagement is still at odds with goals set by the international community, such as the realization of social protection floors -which was unanimously adopted by governments, workers and employers in the ILO in 2012 -and the achievement of the Sustainable Development Goals (SDGs) on universal health coverage and free, equitable and quality education. 84 The IMF has emphasized the importance of social protection in policy responses to the crisis -including expanded unemployment and health benefits, sick leave, cash transfers and public works programmespotentially funded by increasing income and wealth taxes. 85 Despite the IMF's messages on the need for social protection and inequality reduction, 84% (76 of 91) of the IMF's COVID-19 loans encourage, and in some cases require, countries to adopt tougher austerity measures in the aftermath of the pandemic.…”

Section: The Risk Of Taking On More Creditmentioning

confidence: 99%

Shelter from the Storm: The global need for universal social protection in times of COVID-19

Barba¹,

Regenmortel²,

Ehmke³

2020

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As 2020 draws to a close, the economic devastation caused by the COVID-19 pandemic shows no sign of abating. Without urgent action, global poverty and inequality will deepen dramatically. Hundreds of millions of people have already lost their jobs, gone further into debt or skipped meals for months. Research by Oxfam and Development Pathways shows that over 2 billion people have had no support from their governments in their time of need. Our analysis shows that none of the social protection support to those who are unemployed, elderly people, children and families provided in low- and middle-income countries has been adequate to meet basic needs. 41% of that government support was only a one-off payment and almost all government support has now stopped. Decades of social policy focused on tiny levels of means-tested support have left most countries completely unprepared for the COVID-19 economic crisis. Yet, countries such as South Africa and Bolivia have shown that a universal approach to social protection is affordable, and that it has a profound impact on reducing inequality and protecting those who need it most. In addition to the full paper and executive summary, an Excel file with the data analysed by Oxfam and Development Pathways is available to download on this page, along with an annex on the crisis in Latin America and the Caribbean.

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Great Expectations: Is the IMF turning words into action on inequality?

Cited by 3 publications

References 18 publications

Adding Fuel to Fire: How IMF demands for austerity will drive up inequality worldwide

Adding Fuel to Fire: How IMF demands for austerity will drive up inequality worldwide

The IMF and Lebanon: The long road ahead – An assessment of how Lebanon’s economy may be stabilized while battling a triple crisis and recovering from a deadly blast

Shelter from the Storm: The global need for universal social protection in times of COVID-19

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