Over fifty renowned economists, academics and development experts from across the world recently wrote to the Executive Board of the International Monetary Fund to express concern over the IMF “independent” evaluation of The IMF and social protection, and its recommendations approved by IMF Board in July 2017.
The experts include Sir Richard Jolly, Institute of Development Studies, former Deputy Executive Director UNICEF; Professor Stephany Griffith-Jones, Financial Markets Director, Initiative for Policy Dialogue, Columbia University; Jayati Ghosh, Professor of Economics, Jawaharlal Nehru University, New Delhi; among many others.
Writing to the IMF’s Managing Director Christine Lagarde and the Executive Board, which represents 24 directors from throughout the world, the experts particularly expressed their concern on IMF’s advice on social security reforms. They claimed that these reforms are led by a fiscal objective, combined with labour reforms that weaken wages and collective bargaining. They argued that cumulatively, these reforms have a high human cost and will result in more poverty and inequality.
While expressing dismay about recent attempts to cut employers contributions to social security, the experts lamented that this would destroy public social security systems and increase inequality. They reminded the senior management of IMF that the world governments agreed in the SDGs to extend social protection systems for all.
The letter can be read here.