Can the IMF Help the Global South?
As debt burdens worsen, all eyes are on the IMF.
In late July, the International Monetary Fund updated its World Economic Outlook. The results were grim: High inflation has brought tighter financial conditions, only worsening the developing world’s debt burden as the global economy reels from the COVID-19 pandemic and Russia’s invasion of Ukraine.
In late July, the International Monetary Fund updated its World Economic Outlook. The results were grim: High inflation has brought tighter financial conditions, only worsening the developing world’s debt burden as the global economy reels from the COVID-19 pandemic and Russia’s invasion of Ukraine.
In this edition of Flash Points, we explore the roots of the global south’s looming debt crisis, the heated debates surrounding the IMF’s role in economic recoveries around the world, and why Argentina’s agreement with the IMF this year could set a new—and better—precedent for tackling debt restructuring.—Chloe Hadavas
An activist dressed as Argentina’s Eva Perón takes part in a rally calling for debt reform during the virtual Spring Meetings of the World Bank and International Monetary Fund outside the IMF headquarters in Washington on April 8, 2021.MANDEL NGAN/AFP via Getty Images
The Global South’s Looming Debt Crisis—and How to Stop It
Many poor countries face major economic disruption and possible default on their sovereign debt in 2022, Mark Malloch-Brown writes.
Opposition supporters march during a protest against inflation, political destabilization, and fuel price hikes in Rawalpindi, Pakistan, on July 2.FAROOQ NAEEM/AFP via Getty Images
Pakistan Is Drowning in Debt
Rising prices, food insecurity, and a growing debt burden make Islamabad’s other challenges all the more pressing, FP’s Lynne O’Donnell writes.
People take part in a protest against the government’s motion to increase taxes in order to reach a credit agreement with the International Monetary Fund in San José, Costa Rica, on Sept. 30, 2020.EZEQUIEL BECERRA/AFP via Getty Images
The International Monetary Fund: Holy Grail or Poisoned Chalice?
As the global south struggles to grapple with its debt pandemic, experts question the efficacy of the IMF’s conditional lending, FP’s Anusha Rathi writes.
Solar technicians from Alianza Ceibo/Amazon Frontlines help members of the A’i Kofan of Sinangoe’s community guard install solar panels at lookout stations. Nixon Andy Narvaez/A’i Kofan Community of Sinangoe
Ecuador’s Distant Dream of a Green Recovery
The debt-saddled country is struggling to meet its climate goals under IMF austerity, FP’s Catherine Osborn writes.
Members of leftist groups demonstrate against the International Monetary Fund on the eve of a $730 million installment due to repay Argentina’s debt in Buenos Aires on Jan. 27.ALEJANDRO PAGNI/AFP via Getty Images
Argentina and the IMF Turn Away From Austerity
A recent agreement may set a better precedent for dealing with debt levels around the world, Joseph E. Stiglitz and Mark Weisbrot write.
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