UN criticizes: IMF's measures in different countries lead to instability 

The non-governmental organization "Public Advocacy"  is concerned about the activities of the IMF  in different regions of the world.

The programs implemented by IMF lead to economic problems and worsen the protection of human rights in many countries.

In this regard, we support the concerns of the UN Special Rapporteurs and independent experts who have received information from human rights organizations and sent communications to the IMF with questions about their activities.

The IMF was created to monitor global economic trends and provide policy advice to member countries. This includes financial support, offering recommendations, technical assistance, and training on monetary and exchange rate policies to help stabilize currencies. However, currency stability has waned over time as countries hesitate to devalue their currencies despite

inflation and imbalanced payments. The IMF and other international organisations such as the OECD, WTO, and World Bank, which have the mandate to provide financial aids and advice to developing nations, have been imposing stringent austerity measures as conditions for loans. These measures often lead to severe economic contractions and affect currency stability, limiting also access to resources and opportunities needed for economic stability. There is a threat to human rights posed by potential conditionalities

imposed in current and upcoming international debt renegotiations.

The IMF’s structural adjustment programs (SAPs) require countries to implement economic reforms that may include devaluation of their currency. Critics argue these reforms can cause inflation and economic instability,

further impacting currency values.

In 2016, Egypt floated its currency as part of an IMF-backed reform program, leading to a significant devaluation. The IMF agreed to inject cash after the Egyptian government allowed the Egyptian pound (EGP) to drop to a record low against the US dollar. With an inflation rate of close to 30% in January, Egyptian authorities have been wary of allowing the pound to drop further intensifying the financial hardship on families, especially women headed households. Ghana’s central bank drained its reserves to support its currency for years. In December 2022, that government abandoned these efforts and instead said it would no longer service its external debts and launched a punitive restructuring of domestic debt.

The local currency, which appreciated strongly in the run-up, has since lost half its value in comparison to the US dollar. In 2024, Ethiopia announced plans to float its currency in a long-delayed reform designed to attract foreign direct investment

and cure its foreign currency shortages.

The IMF’s austerity measures and structural reforms can lead to reduction in public investments, often affecting cultural and educational institutions first, socioeconomic unrest and political instability, which can negatively impact investor confidence and lead to currency depreciation. The IMF’s focus on short-term economic stabilization rather than long-term development can

result in measures that stabilize the currency temporarily but do not address underlying economic weaknesses, leading to recurring instability. Research has shown that, in Egypt, the austerity measures supported by the IMF have contributed to a decrease in social spending and an increase in poverty, with women bearing the greatest brunt of these cuts. Cuts in public spending are

likely to be compensated by increasing women’s unpaid care work, reducing their time for paid work, leisure and rest. In Egypt, fuel and energy subsidy reforms combined with high inflation as a result of currency floating has led to a cumulative increase in the electricity bills for the poorest people, and middle-income families, including particularly women. Other countries affected by such stringent IMF measures include Ecuador and Lebanon. In Lebanon, cutting the wage bill of the public sector, a large employer of women in lower- and middle-income countries, is correlated with increased unemployment levels among women.

The promotion of VATdisproportionately impacts low-earning taxpayers, and important group of women are women working in low-paid or in the informal sector. In Ecuador, fiscal austerity measures, and specifically public expenditure reductions for

public services recommended in the IMF loan framework, generate disproportionate harm for women in Ecuador through key channels.

The IMF often advises countries on economic reforms, including budget cuts, tax increases, and structural adjustments, typically aimed at stabilizing economies and promoting growth. However, these recommendations can sometimes impact civic space and citizens’ freedom to organize, protest, and engage in civic activities, further limiting the voices of women and marginalized communities in economic decision-making.

The strengthened neoliberal turn of the past forty years, as reflected in the policies of international economic institutions and national Governments, has demonstrably increased poverty and inequality both between and within countries. These inequalities, underpinned by patriarchy, slavery, racism, colonialism, militarism and environmental destruction, have been exacerbated by orthodox macroeconomic prescriptions, including structural adjustment and austerity measures designed to offset crippling national debts, the liberalization of global trade and investment and the financialization of capital markets, and the resulting monetary and fiscal regimes, the privatization and commodification of public goods and the retreat of the welfare state.

Governments implementing IMF recommendations may face public discontent, leading some to restrict civic space to maintain control. This can include limiting freedoms of assembly, censoring media, or introducing restrictive laws that restrict the ability to protest. Civil society groups and activists often face pressure or direct repression in countries undergoing IMF induced reforms. For example, Tunisia has faced economic challenges and, in seeking IMF support, the government began implementing reforms that led to price hikes and subsidy cuts. When protests erupted, the Tunisian government responded with stricter laws, restricting freedom of assembly and introducing harsh measures to silence dissent. Several activists were detained, and restrictions on civic engagement intensified, as the government sought to avoid backlash against its economic reforms.

Without prejudging the accuracy of these allegations, we express our deep concern regarding the role of the International Monetary Fund (IMF) in global currency fluctuations and its impact on human rights. Particularly in the context of IMF’s loans granted to low-income countries (LICs) and the country's ability to guarantee and promote the human rights of its population. Governments should include a broader, more gender-inclusive participation of civil society in crafting these reforms to reduce social unrest and ensure economic reforms are respectful of the social reality.

Civil society should, therefore, take steps to raise awareness in their own countries of the IMF's problems, particularly among politicians with electoral mandates.

Human rights organisations should also continue to raise their concerns at the UN level in order to maximise the negative effects of ill-considered IMF policies in different parts of the world, or, where such activities are deliberate, to ensure that these problems are adequately publicised, including at the international level.

"Public Advocacy" will continue to engage with the UN Special Procedures system on this issue in relation to the organisation's regions of operation.