Researchers from Boston University's Global Development Policy Center, based on Bay State Road, spent this month's Annual Meetings of the International Monetary Fund and World Bank in Bangkok arguing that the two lenders are falling short.
In a summary published Oct. 27, the center said the IMF and World Bank “have yet to demonstrate that their policy tools are sufficient to meet developing countries’ needs.” It pointed to climate shocks, rising borrowing costs, persistent inflation, mounting debt and economic impacts from the war in Iran.
What the center wants
The center proposed that the IMF expand rapid, unconditional liquidity so countries can get through shocks without excessive budget cuts, while protecting essential social spending.
“There are not enough funds available for emerging markets and developing countries to manage shocks,” center director Kevin Gallagher said at a panel. “There isn’t enough firepower to be able to handle them.”
Senior academic researcher Marina Zucker-Marques spoke at an official event on the lenders' joint Three-Pillar Approach for low-income countries. She said “developing countries urgently need a tailored, distinct response to shocks, and the current framework is not addressing the compounding crises.”
Inside and outside the meetings
IMF Managing Director Kristalina Georgieva acknowledged at the opening that “the situation demands an urgent and comprehensive set of policy responses.” On the final day, demonstrators marched near the convention center with signs reading “No World Bank, No IMF,” according to the center's account.
According to BU's Pardee School of Global Studies, center staff took part in more than 30 events, meetings, workshops and panels and hosted seven events with partners. One event, hosted by a center-led task force, included Barbados Prime Minister Mia Mottley.