Structural adjustment program

IT is indeed interesting to note the influence of the World Bank and International Monetary Fund (IMF) on the local economy not only in Fiji but globally especially in less developed countries.

Last week we have been reading on social media about the finding by the World Bank of its Economic Update for March 2024 which was released in Samoa.

Now on the front page of The Fiji Times

(13/03), the International Monetary Fund (IMF) has found after its annual assessment on Fiji’s economy that there is no need to be alarmed about Fiji’s debt.

Such statement by the IMF reminds me of Professor Patrick Lumumba’s speech on “Africa’s Economic Emancipation” in Ghana on the

22nd day of September 2016 where he said and I quote, “Whenever you hear IMF and the World Bank telling you that your economy is doing very well, we should be very worried.”

In the same speech Prof Lumumba also talked about structural adjustment program (SAP).

For people who may not be aware of SAP, it is a set of economic reforms that a country must adhere to in order to secure loan from the IMF or World Bank,

After the IMF confirmed that there is no need for alarm on our national debt, however, comes the structural adjustment program (SAP) which the IMF advised the need to “rebuild fiscal space” or to reduce debt level further in order to give Fiji more room to borrow in case of significant economic shocks. (FT 13/03)

The logic to reduce debt level further in order to give more room to borrow, Patrick Lumamba is right in every way, we should be very worried even when we are told not to be alarmed.

KOSITATINO TIKOMAIBOLATAGANE Navua