A new study by Washington D.C.-based Center for Global Development titled, "Does the IMF Constrain Health Spending in Poor Countries? Evidence and an Agenda for Action," was produced by the CGD Working Group on IMF Programs and Health Spending and chaired by Mr. David Goldsbrough.
The working group included 15 experts drawn from policy-making positions in developing countries, academia, civil society, and multilateral organizations. The study explored criticisms of the IMF’s macroeconomic policies and the impact they actually have on health spending in low-income countries, supported by in-depth case studies from Mozambique, Rwanda, and Zambia.
On fiscal policy (deficit-reduction targets), the report found: “The evidence suggests that IMF-supported fiscal programs have often been too conservative or risk-averse. In particular, the IMF has not done enough to explore more expansionary, but still feasible, options for higher public spending.”
On monetary policy (inflation-reduction targets), the report noted: “Empirical evidence does not justify pushing inflation to these levels in low-income countries.” Among its many recommendations, the CGD report called on the IMF to “help countries explore a broader range of feasible options,” and with “less emphasis on negotiating short-term program conditionality.”
