IMF policies and practice: report


Published:
21 July 2017
Issued by:
The Independent Expert on the promotion of a democratic and equitable international order
Presented:
To the General Assembly at its 72th session
Link:

Background

In its resolution 71/236, entitled "Towards a New International Economic Order", the General Assembly reaffirmed that national development efforts need to be supported by an enabling international economic environment, including coherent and mutually supporting world trade, monetary and financial systems and strengthened and enhanced global economic governance, as well as by respect for each country's policy space, which set the stage for this report.

Summary

This report examines the impact of the conditionality of loans from the International Monetary Fund on development and human rights.

With reference to his sixth report to the Human Rights Council, which focused on the World Bank (A/HRC/36/40), the Independent Expert on the promotion of a democratic and equitable international order calls upon the Fund to give States adequate policy space to fulfil their human rights obligations. Instead of imposing loan conditions that weaken the public sector and induce reductions in social spending, States should be encouraged to reduce military expenditure, cooperate in efforts to prevent tax evasion, corruption and profit-shifting and reach a global consensus on sovereign debt restructuring.