www.DemocraticFundamentalism.org - reclaiming fundamental democratic constitutional values  

Home    About    Books    Links    Government     Entertainment   HiTech   Medicine    Victims    News    Take Action

Globalization - Countries

IMF Denies Blame for Malawi Famine
The Times May 29, 2002

IMF – Malawi - The International Monetary Fund has denied allegations that it was partially responsible for the gathering famine in Malawi.

The Washington-based institution has been blamed for putting pressure on President Muluzi to sell off maize reserves to save money on storage and to repay foreign debts at the very moment when the harvest failed.

Aleke Banda, Malawi’s Agriculture Minister, and Western aid agencies, including the Save the Children Fund, have claimed that the IMF and Western donors pushed Malawi into selling the reserves.

The row has thrown a spotlight on to the seemingly irreconcilable goals of sound financial discipline required by the IMF among developing countries in exchange for financial assistance and the need to maintain expensive food surpluses to avert sudden food crises. The United Nations’ World Food Programme estimates that three million people will need emergency food assistance in Malawi alone between July, when existing maize stocks run out, and March, when the next harvest is due.

The IMF said yesterday: "The allegations are wrong." It said that it had merely advised the Government to reduce the strategic grain reserve to 60,000 tonnes, which would have provided a sufficient buffer stock for emergencies. It did not suggest that the Government sell off the maize reserve entirely. At no time did the IMF "insist that Malawi reduce its food stocks as a condition of lending, nor did the IMF pressure Malawi to make any sales from the buffer stock," the statement added.


(c) 2001,2002,2003,2004,2005,2006, 2007 DemocraticFundamentalism.org,      All Rights Reserved

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in an effort to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: www.law.cornell.edu/uscode/17/107.shtml If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. The views expressed herein are the writers' own and not necessarily those of this site or its associates.