TRUTH ABOUT DEBT

IMF Gold Sales – Funding Available for the Most Vulnerable

On April 15, Jubilee continued our campaign of IMF gold for the poorest as we joined forces with Oxfam and ActionAid to host a media stunt outside the IMF Spring Meetings.

An 8 ft-high pile of oversized gold bars, each bearing the message "IMF: Cancel Debt" in bold black letters, accompanied posters demanding "IMF's Golden Opportunity: Help Countries in Crisis" and "$2.8 Billion for the Poor!" Staff and supporters shouted chants such as "G-O-L-D. This is what we want see. Let's cancel the debt!" and "IMF - It's time to be bold. We can buy schools with all the gold!"

Though no final decisions were made at the Spring Meetings, the European Executive Directors discussed increased grants to low-income countries as a possibility in directing the excess profit from gold sales. We urge the IMF to support poor countries through debt cancellation with excess windfall, not increased lending. However, our campaign has brought debt relief for poor countries as a possibility to the table over the last month. In addition to our media stunt and joint statement on excess profits, we have collected nearly 15,000 signatures from around the world supporting IMF profits for the poor.

SEE press hits from the media stunt
VIEW photos from the event on Flickr
READ the Media Advisory about our stunt in front of the Fund and Bank

In December, 2010 the IMF completed the sale of 403 tonnes of gold from its own reserves. The Fund earned a huge and higher-than-expected profit - $2.8 billion in excess cash due to the sky-high market price of gold during the sales.

Meanwhile, people are suffering all over the world. The economic crisis is still hurting the most vulnerable citizens, and with high fuel prices and a huge increase in the cost of food, World Bank estimates that more than 44 million more people were pushed into extreme poverty.

The IMF hardly needs this money – they’ve already received a $7 billion endowment from gold sales and will bring in $500 million in profits his year from lending to countries in crisis. They’re even considering refurbishing their already extravagant headquarters in DC.

Jubilee USA Network and 58 other organizations around the globe, including the International Trade Union Confederation, Oxfam, ActionAid and ONE, are calling on the IMF to use its extra profits for life-saving debt relief to help poor countries in crisis.

Unmasking the IMF: PR vs. True Change for the Poor

The global financial crisis devastated the global economy, particularly the world’s poorest countries, where an additional 64 million people were forced into extreme poverty.

Instead of fixing the international economic system that caused the crisis, world leaders gave the International Monetary Fund – an institution whose policies contributed to the crisis – even greater responsibility. Charging the IMF as a principle player in the global economic recovery, G20 leaders tripled the IMF’s lending capacity from $250 billion to $750 billion.

When the US approved an additional $100 billion to the IMF, civil society and humanitarian organizations argued that fundamental reform of the IMF was needed, given its previous lending practices and the detrimental effect it has had on low-income countries. To combat criticism, the IMF has launched a massive public relations campaign, claiming that it learned mistakes from the past and is a reformed institution. A close look at these changes reveals that IMF reforms are superficial and likely to be short-lived.

Today, more than ever before, world leaders need to acknowledge the need for REAL IMF reform. Before the fall 2010 IMF and World Bank meetings in October, Jubilee USA issued a report at a Congressional briefing calling on the US government - who has significant power and influence over the practices and policies of the IMF - to promote a number of measures to help reign in destructive lending practices.

READ a summary of the report Jubilee issued with explanations for why and suggestions for and how the IMF should change its practices.

No Blank Check for the IMF: Jubilee Responds to Plans for IMF

World leaders at the G20 summit have committed to giving $1 trillion to international financial institutions, including the International Monetary Fund, to help stop the economic crisis. The G20 deal is far from perfect. In the coming months, we have the opportunity to improve the deal so that it helps - not hurts - the world's poor.

The U.S. Congress has to approve the new money for the IMF. On May 14th, the Senate Appropriations Committee approved $100 billion for the IMF and authorized gold sales. As the legislation moves to the entire Senate, Jubilee USA and its partners are calling on Congress to require the IMF to drop its anti-poor conditions and sell some of its gold reserve to fund debt relief, not new loans. IMF gold sales could raise billions of dollars for the poorest countries.

READ Jubilee's talking points on IMF reform and gold sales here

The World Bank estimates that an additional 53 million people will be forced to live on less than $1 per day as a result of the global economic downturn. Most of these people live in impoverished countries that had nothing to do with creating the crisis, but are disproportionately suffering its effects.

Jubilee supporters have been busy getting this message heard - placing letters to the editor in newspapers across the country. Click here to read them.