23 April

Oxfam reaction to the IMF’s Global Monitoring Report

Oxfam spokesperson Elizabeth Stuart said:

“These findings by the IMF and World Bank are a shocking portrait of just how badly the
crisis has hit poor countries. This is a wake-up call for the international community.”

“Poor countries were doing well on tackling poverty, and this progress has been wiped
out by the shock of the economic crisis. Where’s the sense of urgency from the donors
who are now breaking their aid promises? The G20 and donor countries reneged on aid
commitments this year, meaning that poor nations were forced to resort to domestic
borrowing to finance spending in 2009. Now they’re cutting spending prematurely to
avoid a new debt crisis.”

“The IMF says the impact of the crisis on developing countries will be long-lasting and
immeasurable. But new research from Oxfam has measured the impact today, which
shows very clearly that developing countries are being forced to prematurely reverse
their fiscal stimulus. This means that the biggest impact of the crisis for the world’s
poorest people is yet to come.

“In a survey of 56 developing countries, Oxfam found that the economic crisis has left
them with a combined ‘fiscal hole’ (that is, a shortfall in budgetary revenue) of $65bn in
2009 and 2010. Developing countries are being forced to cut vital spending on health,
education and agriculture.”

“African governments shouldn’t be faced with a choice between debt burdens and
cutting their budgets. The IMF must now work with developing country governments to
help them ramp up spending on health and education.”

For information: Caroline Hooper-Box + 1 202 321 2967

Caroline.hooper-box@oxfaminternational.org