• Debt and MDGs

Debt and MDGs

This report details how the Millennium Development Goals (MDGs) and fight against HIV and AIDS can never succeed whilst the International Monetary Fund (IMF) continues to bind growth and sovereignty of developing nations. The authors argue that in many cases, the IMF-imposed macroeconomic policies used in poor countries are hindering both achievement of the MDGs and an effective fight against HIV and AIDS.

Based on analysis of existing research, interviews and in-depth research in five developing countries, the report argues that alternative paths forward must be urgently explored. In addition, the report explores the logic of macroeconomic policies which drive IMF loan programs, explains why these are so problematic and why governments adopt IMF programs.

Findings and recommendations include:

• there is a large gap between MDG needs and spending realities under business as usual policies
• there are concerns that macroeconomic policies enforced by the IMF block poor countries from being able to spend more on education, health and economic development. Yet there is a widespread lack of understanding as to how or why this IMF block occurs
• among most officials interviewed, there was no perception of available policy space to discuss alternatives; some were not even aware that viable alternatives for macroeconomic policy existed
• citizens’ organisations should work with parliamentarians and media to insist on opportunities to lobby and advocate for alternative macroeconomic policies and demand greater transparency in the consultation proceedings.

The report contrasts IMF policies with alternative economic policies that allow for much higher long-term public investments in health, education and development. It concludes by offering a brief exposition of alternative ideas, practices and policy approaches for use by civil society advocates. [adapted from author]

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