WB, IMF and G7 governments accused of aggravating South’s economic woes

By Ifham Nizam

Members of the Asian People’s Movement on Debt and Development (APMDD) took to the streets yesterday, accusing the World Bank (WB), the International Monetary Fund (IMF) and G7 governments of aggravating economic conditions in the global South and of further exacerbating the climate crisis.

In Sri Lanka, Center for Environmental Justice’s (CEJ) Advocacy and Campaign Unit Director Janaka Withanage told The Island Financial Review that the WB had not funded to mitigate fossil fuel issues in Sri Lanka.

Withanage added that, on the other hand, the World Bank should not fund fossil fuel energy projects in G7 countries, but assist them in launching renewable energy projects.

Withanage said that the IMF should not compel Sri Lanka to pay its debts by taking more debts to settle it. “Strengthening resources and production is the key,” he said.

He also stressed that the IMF should cancel all unaudited debts in Sri Lanka.

“A Wealth Tax should be imposed on the affluent class, like in other countries. In Sri Lanka monies are squeezed in from the needy to pay the rich; this concept should be immediately stopped, he stressed.

Withanage also said that to coincide with the annual meetings of the IMF-WB, Asian activists joined hundreds of other organizations worldwide to mark the Global Week of Action for Debt, Climate and Economic Justice.

A statement endorsed by close to 500 organizations and individuals from 74 countries across all global regions denounced the IMF-WB to the effect that, “Together with other private and public lenders, they perpetuate a flawed international financial architecture that exacerbates debt, climate, and economic crises, violating the basic needs and rights of millions of people.”

In Manila, Philippines, hundreds of demonstrators marched to Mendiola, gateway to the presidential palace, with the call, “Cancel the debt and pay reparations for historical and continuing injustices!”

“Global South governments should stop paying for these illegitimate debts!” said Lidy Nacpil, APMDD Coordinator. “At the same time, lenders such as the IMF, the World Bank and G7 governments should stop pushing more loans as climate finance, and swiftly start the process of debt cancellation, adoption of wealth taxes for spending on urgent economic and climate action, and the rechanneling of public funds away from fossil fuel subsidies towards renewable energy systems.”

APMDD members in other countries also rallied to the calls of the Global Week of Action and mobilized in the hundreds to spotlight debt, climate and economic injustices, and to hold the IMF-World Bank and the G7 governments accountable.