A report, released to coincide with the S26 protests against the World Bank and International Monetary Fund in Prague, has revealed the global scale of resistance to the two institutions.
The World Development Movement's States of Unrest: Resistance to IMF Policies in Poor Countries catalogues at least 50 separate episodes of civil unrest directed at the IMF since the Seattle protests against the World Trade Organisation 10 months ago. The incidents involved more than a million people protesting in 13 poor countries.
Half the protests ended in violent clashes with the police or military. Ten people lost their lives, and more than 300 were injured in protests against the IMF and its policies.
While media attention in the West has focussed on protests in the developed countries, the report argues that these were "just the tip of the iceberg". "In the global south, a far deeper and wide-ranging movement has been developing for years, largely ignored by the media", it states.
Jessica Woodroffe, co-author of the report, said, "Attempts by the World Bank and IMF to dismiss protesters as 'rich students' are naive and insulting. Millions of people around the world have been brave enough to protest against IMF policies. From Argentina to Zambia, farmers, priests, teachers and trade unionists have called for an end to IMF-imposed economic reforms.
"Millions of people around the world have seen the IMF attempting to undermine their national governments. It is seen as forcing countries into a one size fits all blueprint of economic development.
"It is significant that all these protests have happened since the IMF announced its new commitment to poverty reduction at its Annual Meetings last September. The depth of opposition reveals just how far the IMF has to go if its new poverty reduction rhetoric is to be anything more that a re-branding exercise."
The IMF, the report argues, has "unprecedented power over these vulnerable countries", earning the nickname "the Gatekeeper" because "it determines whether to open or shut the 'gate' between a borrowing government and its creditors ... Unless the IMF gives its 'seal of approval', signifying that a government's policies are 'adequate', the government may be unable to access credit and attract foreign investment."
The only way these countries have been able to gain the IMF's "seal of approval" is by introducing structural adjustment programs (SAPs).
The common elements in SAPs, identified by the report, include:
- reducing government expenditure, forcing public sector redundancies, freezing salaries, and making cuts in health, education and social welfare services;
- the privatisation of state-run industries, leading to massive layoffs with no social security provision, and the loss of services to remote or poor areas;
- Currency devaluation and export promotion, leading to the soaring cost of imports, land use changed for cash crops, and reliance on international commodity markets;
- raising interest rates to tackle inflation, putting small companies out of business; and
- removal of price controls, leading to rapid price rises for basic goods and services.
"All these policies hurt the poor", the report states. "Developing countries have few choices — either implement policies ill suited to their country or risk economic isolation. Most governments, seeking to retain power and be accepted internationally, choose the IMF over their own people."
The report summarises the protests in 13 countries, including:
In Argentina, a series of strikes and protests against the government's continued IMF reforms ended in violence. The measures have led to unemployment and rural communities complain of a decline in public services.
In Bolivia, escalating protests against the privatisation of water and a 200% price hike led to serious riots and calls for the government to end IMF policies. The president declared a state of emergency and soldiers were deployed on the streets of Cochabamba. At least six people were killed.
In Brazil, more than a million people voted against IMF reforms in a mock referendum, and thousands followed the vote with a mass demonstration, called the "Cry of the Excluded".
In Ecuador, delayed negotiations with the IMF led to a deepening of the economic crisis. A mass movement of 40,000 people, opposing further IMF reforms, led to the storming of Congress and subsequently a bloodless military coup. Despite a new president, the IMF has continued with its reforms, leading to continued riots and civil unrest.
A complete version of the report can be accessed at <http://www.wdm.org.uk/cambriefs/DEBT/unrest.htm>.
BY SEAN HEALY