Africa: Faced With Crushing Debts, World's Poorest Nations to Slash Public Spending By Over 229 Billion Dollars

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Africa: Faced With Crushing Debts, World's Poorest Nations to Slash Public Spending By Over 229 Billion Dollars
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itemprop=description content=Analysis - The World Bank and the International Monetary Fund (IMF) are returning to Africa, for the first time in decades, with the 'same old failed message'.

United Nations — The World Bank and the International Monetary Fund are returning to Africa, for the first time in decades, with the"same old failed message".

In a new analysis released October 9, Oxfam says more than half of the world's poorest countries, home to 2.4 billion people, are having to cut public spending by a combined $229 billion over the next five years. However, Oxfam's analysis of 27 loan programs negotiated with low- and middle-income countries since 2020 found that these floors are a smokescreen for more austerity: for every $1 the IMF encouraged governments to spend on public services, it has told them to cut six times more than that through austerity measures.

Looking at the debt and climate crisis, the only sensible move is for coordinated global action to tax wealth and financial flows, Mittal declared "As a Tunisian activist from the Global South, at the forefront of those affected by the policies of financial funds and the least responsible for climate change, I am here to express my anger at what is happening and protest to achieve justice," said Raouf Ben Mohamed of Debt for Climate.

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