ActionAid has called on African governments to coordinate collectively for a resolution to debt crises, based on radical renegotiation or debt cancellation, including through advancing this case in climate negotiations; and to pursue alternative economic paths that place quality public services, social and economic justice at the heart of building sustainable and truly sovereign states.
The resolution was made by AA Country Directors at the just concluded IMF/ World Bank Annual Meetings in Marrakech, Morocco.
They further called on the two Institutions to move away from the failed neoliberal economic model, to stop imposing austerity policies and constraints to public sector wage bills, and instead to support debt cancellation and ambitious and progressive tax reforms nationally and internationally.
“The IMF and World Bank have imposed a neo-colonial model of economic development based on exploitation and extraction from the Global South which has given rise to regular debt and economic crises.
“These crises have then been used to justify the imposition of harsh loan conditions and coercive policy advice on African governments, perpetuating dependency and stripping away the capacity of States through cuts to public spending.
“Although some of the rhetoric has changed in recent years, in practice the IMF and World Bank are still attached to this cult of austerity, undermining progress on health, education and other public services and blocking Africa’s ability to respond and adapt to the climate crisis.
“ActionAid’s research has shown in particular that IMF enforced cuts and freezes to public sector wage bills have consistently blocked the recruitment of urgently needed teachers, nurses, midwives and other public sector workers.
“We have documented the gendered impact of these cuts, with women being the first to lose access to services, the first to lose opportunities for decent work and the first to absorb the rising tide of unpaid care and domestic work.
“Without access to low-cost financing, many African governments now find themselves facing a deeper debt crisis than ever before – with UNCTAD recently finding that the amount spent on interest payments is often higher than spending on either education or health,” they said.
