All too often we hear the claim that the programs the IMF supports in low-income countries hurt the most vulnerable by forcing cuts in social spending. This is a misconception.
Our study concludes that, contrary to these claims, IMF-supported programs boost education and health spending in low-income countries for as long as countries are engaged with the IMF.
Let the numbers do the talking
We based our analysis on public spending on education and health in 140 countries between 1985 and 2009. The dataset is the most comprehensive ever assembled to assess this issue. The results show the beneficial effects for social spending in program countries in several respects. (more…)
Filed under: concessional lending, IMF, International Monetary Fund, Low-income countries | Tagged: government revenues, higher growth, IMF, IMF-supported programs, iMFdirect, International Monetary Fund, low-income countries, mobilize donor financing, public education spending, public health spending, social justice, social spending, What Happens to Social Spending in IMF-supported programs | 4 Comments »