International institutions setting stringent austerity measures for African countries -Trade Union

INTERNATIONAL financial institutions have been accused of setting stringent austerity measures for African countries, including Zambia, under the guise of fiscal consolidation.

These measures have disproportionately impacted workers and the most vulnerable segments of society, exacerbating poverty and social inequity.

This is according to the International Trade Union Confederation (ITUC-Africa) General Secretary, Akhator Joel Odigie, at Zambia’s debt rally in Lusaka.

While admitting the role by international financial institutions such as the World Bank in exacerbating the debt burden, Mr Odigie was worried of the consequences of measures put in place.

In a speech read by the ITUC-Africa president Ms Martha Molema, he described these measures as austerity.

“Their policies often prioritise structural adjustments that entail trade liberalisation, privatisation, deregulation, and stringent austerity measures under the guise of fiscal consolidation.

“These measures, however, disproportionately impact workers and the most vulnerable segments of society, exacerbating poverty and social inequity,” Mr Odigie said.

He said privatisation of public services and stateowned enterprises, advocated for by powerful private entities and supported by international financial institutions and national governments, under the pretext of efficiency, had resulted in the commodification of basic human rights and exacerbated inequality.

Furthermore, he noted, it had facilitated deregulation, leaving nations at the mercy of the private sector, thereby eroding workers' rights human and trade union rights and perpetuating social injustice.

“Despite previous efforts by international financial institutions, such as the debt cancellation under the Highly Indebted Poor Countries initiative in 2005, the structural roots of the public debt crisis remain unaddressed.

Mr Odigie said it was imperative that the Zambian government, working with its African counterparts, carried out bold and decisive actions to address these systemic challenges.

He proposed some advocacy measures such as sharing Zambia's experiences with debt management frameworks to provide valuable insights for other African nations, thereby averting similar pitfalls.

Mr Odigie also proposed implementing debt management policies that prioritised the well-being of citizens and contributed to the advancement of women and girls, while ensuring responsible and sustainable borrowing practices.