Activists Call Upon IMF, World Bank To Cancel Uganda’s Worrying Public Debt

Posted by: Kyeyune Andrew Jonathan in Uganda news April 14, 2023

Activists have said the International Monetary Fund (IMF) and the World Bank need to end their ‘financial imperialism’ that is exploiting the global south. Instead, they should focus on creating a democratic, equitable, and just financial global world order according to activists.

Debt For Climate Uganda is a local chapter of the Global Debt for Climate movement. According to the movement, the ongoing IMF-World Bank spring meetings in Washington DC shouldn’t be a priority. They say the two powerful institutions should first cancel the “illegitimate debt” the global south owes them.

The national coordinator of the movement, Arthur Musingunzi cites a 1953 London Agreement. In it, Germany’s debt got canceled. This came as a precedent for debt relief for the most indebted nations in the global south.

“As governments converge in Washington for the IMF-World Bank spring meetings, they’re confronted with the daunting prospect that 2023 might be the year that the global south debt will be at its worst peak like that which took place in the early 1980s that led to the infamous decades in Latin America and Africa,” said Musinguzi.

He also added that African countries are the hardest hit by excessive debt which hinders their ability to invest in critical areas. These areas include healthcare, education, and infrastructure. Additionally, according to the Auditor General, by June 2022, Uganda’s public debt hit Shs 86.6 trillion.

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