April 23, 2002
New report reveals widespread and sustained resistance to IMF and World Bank policies by millions in world's poorest countries
Protest and civil unrest in developing countries directed against the policies of the International Monetary Fund (IMF) and World Bank intensified in 2001 according to a report released today by London-based development campaigners, the World Development Movement (WDM).
States of Unrest II: Resistance to IMF and World Bank policies in poor countries in 2001 documents that seventy six people, including a fourteen-year-old boy, were killed, and thousands injured and arrested in protests which took place across twenty three developing countries and involved millions of poor people.
In September 2000, on the eve of massive protests at the Prague meetings of the IMF and World Bank, WDM released its first States of Unrest report. It revealed a previously undocumented pattern of protest and civil unrest in developing countries directed against the policies imposed and championed by the IMF and World Bank. It demonstrated that protests against these institutions and their policies were not limited to privileged 'students and anarchists' from rich countries, as some politicians and the IMF and World Bank themselves had tried to claim, but lead by the world's poorest people.
States of Unrest II, published on the first day of the IMF and World Bank Spring Meetings in Washington DC (20/21 April 2002), charts this trend throughout 2001. Using official documents, published by these institutions and developing country governments, it traces the link between civil unrest and the impacts of IMF economic policies. Of the 77 episodes of civil unrest, 18 ended with the deployment of riot police or the army - often against initially peaceful protests.
Author of the report, WDM researcher Mark Ellis-Jones said: "Millions of desperately poor people around the world have been brave enough to protest against IMF policies: doctors, farmers, priests, teachers, trade unionists and indigenous people, from Angola and Argentina to Zimbabwe and Zambia have called for an end to IMF imposed economic reforms."
"They have seen the IMF continue to undermine their national governments by forcing countries into a free market, one-size-fits-all blueprint of economic development. At a time when links are being made between poverty, disempowerment and terrorism this erosion of the democratic contract is downright dangerous."
"The IMF claims to put poverty reduction at the centre of its policies but we have to ask how deep its commitment goes when the world's poor - those closest to the policies on the ground - are its fiercest critics."
Of the 23 countries documented, nearly three-quarters have IMF-sponsored privatisation programmes, and over half of these have experienced anti-privatisation demonstrations. Half of the countries have had protests by civil service and public sector workers, aimed at policies that either cut or freeze wages or lead to redundancies. Over a third of countries have had demonstrations against the rising prices of basic goods and services because public subsidies have been removed.
Notes for editors:
1. WDM have produced a high quality full colour map to illustrate the findings of the report. It plots the 77 anti-IMF and structural adjustment protests in 2001 documented in States of Unrest II. A high-resolution electronic version for reproduction is available on request. A low-resolution map accompanies the email version of this release. The full report (in electronic and hard copy) and a summary of the report are also available. Spokespeople from WDM are available for interview on the reports findings. After release the report, summary and map will be available at www.wdm.org.uk
2. The South African Municipal Workers Union (SAMWU), participants and organisers of some of the protests documented, can be contacted for interview on the issues raised by the report. Roger Ronnie, General Secretary, SAMWU. Contact tel: +27 82 2006799 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
3. IMF loan conditions typically include: reducing government expenditure (often leading to public-sector redundancies; freezing salaries, and cutbacks in health, education and social welfare services); privatisating state-run industries; currency devaluation and export promotion; raising interest rates to tackle inflation; removing of price controls (often leading to rapid price rises for basic goods and services).
4. The first States of Unrest report, published in 2000,documented protest in the ten months running up to the IMF and World Bank Meetings in Prague in September 2000. It catalogued 50 separate protests in 13 countries. More than half of these protests ended in the deployment of riot police or the army. A total of 10 people have lost their lives, and over 300 were injured in protests against the IMF and its policies. This report is available on WDM's website at: www.wdm.org.uk/cambriefs/Debt/unrest_summary.htm
States of Unrest II
Resistance to IMF and World Bank policies in poor countries in 2001
Summary
States of Unrest II documents protests in 23 countries, charting 77 separate incidents of civil unrest involving millions of people. Estimates indicate that 18 of these incidents ended with the deployment of riot police or the army, with 76 documented fatalities, and arrests and injuries running into thousands. Over a third of these countries experienced protests directed specifically at the IMF and World Bank as institutions.
The protesters include: peasant farmers, indigenous peoples, the unemployed, teachers, civil servants, priests, doctors, public-sector workers, trade-union activists and owners of small businesses. Typically the protests are against cuts in government expenditure, privatisation of state-run industries, and the removal of price controls and subsidies.
Of the 23 countries documented, nearly three-quarters have IMF-sponsored privatisation programmes, and over half of these have experienced anti-privatisation demonstrations. Half of the countries have had protests by civil service and public sector workers, including teachers, doctors and the police, aimed at policies that either cut or freeze wages or lead to redundancies. Over a third of countries have had demonstrations against the rising prices of basic goods and services because public subsidies have been removed.
Selected examples from States of Unrest II country reports:
ANGOLA
The IMF "stressed the importance of adhering to a prudent wage policy, keeping overall public spending in check." In January public sector workers across Angola take part in a four-day general strike over government proposals to reduce the minimum wage.
ARGENTINA
As a condition for a $21bn loan in September the IMF demands "primary spending will be cut... [including] an across-the board cut of 13 per cent in unprotected primary spending, including wages and pensions". Earlier in the year the General Workers Confederation, calls a two-day strike at proposals to cut public salaries by 13 per cent and cut pension benefits. Police were deployed as tens of thousands of workers take to the streets, blocking roads, shutting banks and Government offices and marching on Congress. A spokesperson, representing the Argentinean Confederation of Education Workers said: "We are all in the same situation. The people are all affected by these cutbacks and by exclusion, misery and poverty. Nobody escapes." President Fernando De La Rue admits the country's sovereignty is "limited" due its US$128 billion debt.
ECUADOR
Through out 2001 massive protests continue in response to extreme structural adjustment and IMF-agreed austerity measures including a 60 per cent increase in cooking gas, plans for eighteen privatisations in the electricity sector, an end to state monopoly for telecommunications, and the granting of a 30-year concession to a foreign company for the supply of water and sewage services to the city of Guayaquil. A peaceful march of ten thousand people in Quito is dispersed by police and army using teargas and rubber bullets, hunger strikes occur on University campuses, a state of emergency is declared, and a fourteen year old boy is one of four shot and killed as troops break up a demonstration of five thousand indigenous people. In an occupation of IMF offices in Quito one protester says: "We want to expose the real culprits. The IMF-imposed policies, carried out by the Ecuadorian Government in exchange for more loans."
INDIA
Ten million state employees go on general strike against privatisation plans and call for a halt to IMF, World Bank and WTO policies, as the IMF urges that, "power sector reform was a particular priority [along with] the privatisation of Government enterprises, and liberalisation of labour laws."
NEPAL
In July more than 500 protesters denounce a 40 per cent price hike in electricity prices by the Nepalese Government. According to a news report, the Nepal Electricity Authority was put under pressure from the Asian Development Bank and the World Bank to raise prices as a precondition for fresh loans on water resource development. The IMF announces it is "encouraged by the recent policy initiatives to adjust public sector prices and tariffs."
PAKISTAN
In May, Pakistani Non-Governmental Organisations protest outside the World Bank building in Islamabad with banners saying: "IMF: International Monetary Fraud", and, "World Bank policies: poverty elevation or alleviation?" The IMF continues to demand "the restructuring of public enterprises [and] accelerated privatisation".
SOUTH AFRICA
Thousands of protesters descend on Johannesburg to demonstrate against the privatisation of the city's water supply to French water multinational, Suez Lyonnaise des Eaux as advocated by the IMF. The South African Municipal Workers Union (SAMWU) complains the deal, "has not come up with any plan to extend running water to Johannesburg's poor."
TURKEY
Economic crisis in Turkey continues as government agrees a massive adjustment package with the IMF including "restructuring the banking sector, improving budget transparency, and preparing the privatisation of state-owned enterprises [including steel, electricity, airline and telecom companies]." In March, unions and civil society groups organise a protest, with thousands of protesters taking to the streets shouting, "IMF go home!".
Bayram Meral, President of Turkeys largest union confederation said: "The policies of the IMF and the World Bank do not aim to help Turkey but to assure that Turkey can pay its debts on time and in full." In November thousands attend demonstration calling for an end to "the Governments subservience to IMF policies".
ZAMBIA
Thousands of Lusaka City Council workers strike over non-payment of salaries as IMF makes "firm control on public wages" a condition of $64m loan.
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