“ActionAid Urges IMF & World Bank Overhaul”

….” To combat climate change crisis and debt burdens for global equity”

By Francis Maingaila
Lusaka, Zambia24 (22-04-2024) – ActionAid has strongly urged the International Monetary Fund (IMF) and the World Bank to break free from a colonial-era model, highlighting its detrimental impact on nations grappling with the escalating climate crisis.

ActionAid observed that as debt burdens escalate for countries in the global South, their capacity to address environmental crises is increasingly hindered.

Despite 80 years of existence, the recent Spring meetings of these institutions in Washington DC failed to deliver substantial change, according to ActionAid. Instead, they have exacerbated challenges for Southern nations.

ActionAid’s report, “Fifty Years of Failure,” emphasizes the harmful effects of IMF-imposed austerity measures on African nations.

%Despite adhering to IMF recommendations for decades, many countries now confront severe debt crises or are on the brink of them,” ActionAid stated in statement.

Moreover, ActionAid voices concerns about the persistent dominance of Europeans and Americans in the top leadership positions of the IMF and World Bank, respectively.

According to ActionAid, this perpetuates a colonial-era power structure that needs urgent transformation, says Niranjali Amerasinghe, Country Director for ActionAid USA.

ActionAid not only calls for debt relief and equitable taxation to facilitate investment in climate resilience but also advocates for a substantial overhaul of the global financial system. It proposes the establishment of effective debt relief mechanisms and a UN-led tax agreement.

“These reforms are deemed essential by ActionAid to ensure that governments in the global South have a meaningful say in shaping policies that disproportionately affect their citizens.”