Blocking progress: how the World Bank and International Monetary Fund are undermining the fight against HIV/AIDS

This ActionAid briefing explores how International Monetary Fund (IMF) loan conditions to developing countries are undermining the fight against HIV/AIDS. The author argues that the global community is ready to scale-up levels of foreign aid to help poorer countries finance the much needed greater public spending to fight HIV/AIDS. However, IMF fears that increased public spending will lead to higher rates of inflation has resulted in limited resources being available for public health. The author argues that while inflation hurts the poor, not increasing public health budgets to fight HIV/AIDS also hurts the poor and decisions should be made locally.

The paper makes key policy recommendations. Firstly, G7 governments should issue clear policy positions on how flexible they are willing to be in terms of rising inflation levels that result in higher public spending. Secondly, governments must refuse to take action on the IMF Executive Board that results in undermining the fight against HIV/AIDS and other health crises. Finally, G7 governments should participate in providing a range of macroeconomic policy scenarios, which would allow informed choices about the trade-offs, as well as the short and long term costs and benefits of increased public spending on HIV/AIDS. [adapted from author]

Read the IMF response to this paper

Read the ActionAid response to IMF points