Christian Aid calls on IMF to rethink economic policies

|PIC1|Christian Aid has called upon the International Monetary Fund to ditch “discredited” economic policies that have only worsened poverty in Africa.

The aid agency is calling on the IMF to review it economic policies as it meets the World Bank this weekend to discuss a major fiscal stimulus package and reform of the financial sector.

The IMF is expected to outline a strategy for helping economies get through the economic crisis after receiving $500bn from G20 nations earlier in the month to help low and middle-income countries protect their economies.

Christian Aid said countries that contributed to the cash boost should monitor its performance closely, and particularly the conditions attached to loans.

The World Bank, meanwhile, will announce new funding to boost jobs in poorer countries through infrastructure projects.

In a new report, ‘One Size Fits All?’, Christian Aid challenged the IMF for pursuing economic policies aimed at deregulation, privatisation, the liberalisation of trade and financial markets and lower corporate taxes, otherwise known as the Washington Consensus.

Christian Aid said the policies were imposed on a number of African countries “with scant regard for the specifics of their economies” and “caused poverty to worsen”.

The aid agency urged the IMF to review its economic policies.

A Christian Aid spokesperson said: “Tax policy advice and the technical assistance it gives to poor countries must be reviewed if such countries are to be able to access adequate financial resources in order to build stable economies and help the poorest in their societies.”