[e-drug] IMF and the World Bank

["Dimitri Peffer" <dimitri@cmam.imoz.com>]

E-drug: IMF and the World Bank
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See one interesting article on
http://www.id21.org/zinter/id21zinter.exe?a=2&i=s7amej1g1&u=3dd215f6

Dimitri
__________________________________
Dimitri Peffer
M.Sc. Health Economics
Assessor de Auditoria
Central de Medicamentos e Artigos M�dicos
Minist�rio da Sa�de
Mocambique
"Dimitri Peffer" <dimitri@cmam.imoz.com>

The IMF and World Bank: undermining democracy and rolling back the state?

Abstract : "The IMF and World Bank: undermining democracy and rolling 
back the state? Why are anti-IMF protests sweeping the developing 
world? Is it privileged students and anarchists who are behind the 
wave of unrest? Who are taking to the streets and how are their 
livelihoods being affected by liberalisation? Are Poverty Reduction 
Strategy Papers (PRSPs) merely Structural Adjustment Programmes 
(SAPs) in another guise? Mark Ellis-Jones - World Development 
Movement, UK - 19 September 2002"

Why are anti-IMF protests sweeping the developing world?

A hard-hitting report from the World Development Movement charts 
recent civil unrest in 23 developing countries directed against 
policies championed by the IMF. Citing evidence drawn from official 
documents that the free market policy model is failing, it points out 
that protesters in countries of the South come from across the social 
spectrum. Peasants, the unemployed and indigenous people are joining 
trade unionists, public sector workers, religious leaders, doctors, 
teachers, small businessmen and, in some cases, even policemen in 
venting their anger.

Of the 23 countries documented, three quarters have IMF-sponsored 
privatisation programmes. In 2001 seventy six people, including a 
fourteen-year-old boy, were killed, and thousands injured and 
arrested in protests. In half the countries, civil servants and vital 
public sector workers protested at policies that have cut their 
income or led to redundancies. In a third of the countries, people 
demonstrated against the rising prices of basic goods and services as 
public subsidies and price controls have been removed.

The report argues that the IMF and World Bank are not heeding the 
concerns of those suffering from reduced state expenditure, currency 
devaluation, divestiture of state assets and raised interest rates. 
PRSPs include the same policy prescriptions as SAPs, albeit couched 
in the language of development. Developing country governments have 
little leeway to counter the effects of liberalisation as they remain 
locked into a dependent relationship with the international financial 
institutions and donor governments.

Highlights from the 23 country reports include:
- of the 77 episodes of civil unrest cited, 18 ended with the 
deployment of riot police  or the army - often against initially 
peaceful protests
- endorsing the bypassing of democratic process, the IMF 
congratulated Argentina's  government on obtaining emergency powers 
to legislate by decree on tax policy and public sector reform  
- pressured by the Asian Development Bank and the World Bank, Nepal 
suddenly hiked electricity prices by 40 percent  
- the selling of Johannesburg's water system to Suez Lyonnaise des 
Eaux (without  any plan to extend supply to poor neighbourhoods) and 
other privatisations have  infuriated South African trade unionists 
who believed in the ANC's pledge to provide  free basic services to 
the poorest of the poor  
- in several countries, teachers and health workers took to the 
streets at the failure of  governments to pay salary arrears or keep 
wages in line with inflation.

Implications arising from the report suggest that unless the 
international financial institutions pay more heed to the negative 
consequences of liberalisation: in developing countries, NGOs, trade 
unions and the general public will increasingly  blame the IMF and 
World Bank as the source of poverty  
- governments will continue to lose legitimacy in the eyes of their citizens  
- with all other avenues blocked, and developing country governments 
powerless to act in the interests of their citizens, direct action is 
sure to increase in intensity.

Contributor(s): Mark Ellis-Jones
Source(s): 'States of Unrest II: Resistance to IMF and World Bank 
policies in poor countries' by Mark Ellis-Jones, World Development 
Movement, April 2002 Also see: 'States of Unrest I' by Mark 
Ellis-Jones, World Development Movement, September 2000
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