![]() “Often that meant you were using more environmentally damaging fertilizers, or you were doing extractive mining projects that were environmentally damaging. To encourage economic growth, many countries were pressured to shift “from producing food to producing agricultural products that you could sell on the global markets,” Bradlow says. The policy measures dictated by the IMF also had detrimental environmental consequences. ![]() Throughout the 1980s, the IMF pressured country after country - in what’s often known as Structural Adjustment Programs - with lasting damage on economies and populations. The measures imposed by the IMF limited access to healthcare and education for poorer people. “The IMF said if you follow our policy prescriptions, things will turn around and you’ll do much better.” The ongoing impact of colonialism means many countries in the Global South “were in a very dire situation to begin with,” Bradlow explains. (Shutterstock) Ongoing impact of colonialismĭanny Bradlow, a professor of international development law and African economic relations and senior fellow at the University of Pretoria in South Africa, highlights the harmful effects of IMF-imposed austerity measures. The International Monetary Fund has 190 member countries. Presently, more than 90 countries remain indebted to the IMF, with such loans being accompanied by policy conditions. Member countries contribute a certain amount of money to the IMF based on their economic size, and in turn, they are able to access loans as a means of aid.ĭuring the recent COVID-19 pandemic, the IMF extended loans to over 80 countries. Since then, it has evolved to provide financial assistance and support to countries facing economic crises and emergencies worldwide. Originally founded after the second world war, the IMF aimed to provide a framework for countries to cooperate in managing their exchange rates and to facilitate international trade. These loans were accompanied by stringent conditions, and countries faced pressure to reduce public subsidies and social spending, downsize the public sector workforce, and increase taxes. ![]() This is because of the IMF’s reputation: during the 1980s, many nations in Africa, Asia and Latin America turned to the IMF seeking loans to mitigate economic challenges. In countries across the Global South, the launch of IMF programs often sparks considerable concern.
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