World Bank, IMF faulted on policies

People’s Alternative Global Tribunal has described the World Bank and International Monetary Fund (IMF) as “the biggest scam of the century as they are robbing the poor, and funding the rich”.

The verdict follows testimonies from several people, including a Malawian Jessica Mandanda, who on Wednesday spoke out against the real impact of the Bretton Woods institution’s economic policies on poor people’s lives and countries.

Mandanda, a communications adviser and feminist campaigner from Lilongwe, gave her testimony at a global tribunal organised by Fight Inequality Alliance on the sidelines of the World Bank/IMF annual meetings in Marrakech, Morocco.

She said: “Over the last 20 years, Malawi has implemented structural adjustment programmes under the guidance of the IMF and World Bank and over the last five years, Malawi has been paying more off this debt rather than put money into public health.

“Because of budget cuts, no beds and lack of electricity supply or hospital staff, women in 2023 in Malawi are giving birth by themselves on the floor in the dark. Women have died and their blood is on the hands of the IMF and World Bank.”

In a statement on Friday, Fight Inequality Alliance said across the world, governments and international financial institutions (IFIs), particularly the World Bank and IMF, continue to follow an economic model that has consistently supported the rich and failed the poor.

Reads the statement in part: “The neoliberal economic model pursued by the governments and the IFIs resulted in reduction in public services, exponential growth in privatisation of essential services and shifting the tax burden from rich to the poor.

“Reduced public spending and privatisation of essential services have left devastating impacts on people’s lives as the cost-of-living rises, and public services are underfunded. Debt repayments are prioritised over the rights and needs of ordinary people.”

The jury of the People’s Alternative global tribunal came to an unanimous decision and found the IFIs seriously guilty of fuelling inequality by colluding with the financial sector and powerful multinational corporations.

They also found IMF and World Bank guilty of ill-advising governments to pursue an economic model that is entirely flawed and favours political and financial elites, a majority of whom are men.

The jury and the audience members agreed to call the World Bank and IMF “the biggest scam of the century”.

The World Bank and IMF are yet to comment on these concerns.

The jury members are from different countries and are leading experts in the areas of economics, human rights and social justice activism.

Apart from Malawi, the jury members heard testimonies from representatives of communities affected by World Bank and IMF policies and practices in Ecuador, Egypt, Indonesia, Ivory Coast, Kenya, Mexico, Pakistan, South Africa, Uganda, Zambia and Zimbabwe.

The alliance’s call to action has, so far, united 40 movements and groups in 47 countries as Peoples’ Alternatives.