IMF Relief: Actions

For decades now, the International Monetary Fund (IMF) and the World Bank have required borrowing countries to adopt an “export more, spend less” model of development. And the countries that have gone furthest to shift to export-oriented production and lift restrictions on investment are now the most vulnerable.

IMF acts as an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It is an organization formed to stabilize international exchange rates and facilitate development.

“Debt relief is a proven, effective, and fast way to reduce poverty”. And if the IMF used its existing resources to pay for it, this approach would put a minimal burden on U.S. taxpayers. Unfortunately, however, debt cancellation is not even mentioned in the draft official communiqué that has been prepared for the G20 leaders.

In hard times like these, it’s understandable to want to focus on problems in your own backyard. But ignoring the problems of the poorest countries will come back to haunt the United States and other richer nations in the long run.