ActionAid International has criticized the 2024 International Monetary Fund (IMF) and World Bank Annual Meetings in Washington, D.C., calling them a “damp squib” that failed to address critical issues for those living in poverty.
IMF projections of high debt and slow growth, especially in the Global South, accompanied by its recommendations for continued fiscal tightening and public sector wage cuts, demonstrate a disconnect from the needs of vulnerable populations, according to ActionAid. Roos Saalbrink, Global Economic Justice Lead at ActionAid, remarked, “Once again, the IMF shows it is not fit for purpose, adhering to policies that neglect the real needs of billions and worsen inequality.”
Jessica Mandanda, Policy Specialist at ActionAid UK, echoed concerns over austerity, saying, “The IMF’s calls for fiscal restrictions will increase the burden on vulnerable communities, especially women, by reducing spending on essential services such as health and education.”
ActionAid also underscored the need to shift focus from Gross Domestic Product (GDP) as the main economic metric, citing it as a continuation of colonial-era wealth extraction that fuels extreme inequality and worsens the climate crisis. Lina Moraa, Women’s Rights Programme and Policy Advisor at ActionAid, called for a new approach, saying, “The IMF has failed to reform for the past 80 years. It’s time for a bold new era of economic justice.”
The organization advocates for global financial reform, urging governments to reassign debt negotiation and sustainability assessments to a democratic UN-based platform to better serve marginalized communities globally.
