IMF and WB loans to Mozambique increase income imbalance index

Empréstimos do FMI e BM a Moçambique aumentam índice de desequilíbrio de renda

An Oxfam analysis reveals that Mozambique is one of the countries with a high rate of income imbalance due to loans or subsidies from the International Monetary Fund (IMF) and/or the World Bank (WB).

Oxfam based its study on a Gini coefficient above 0.4, a level considered alarming by the United Nations.

The study identified 39 countries with high levels of income imbalance, including Mozambique, Ghana and Honduras. For the same reasons, the document points to 37 countries where inequality has increased in the last decade, including Burkina Faso, Burundi, Ethiopia and Zambia.

Quoted by CNN Brazil, the Director of Oxfam International in Washington, USA, Kate Donald, said that the IMF and WB promote policies that increase inequalities between rich and poor, despite saying that fighting inequalities is a priority.

The study was presented this week during the annual spring meetings co-organized by the two financial institutions, where topics such as the economy and global development were discussed.

The Oxfam survey points out that donor contributions to the World Bank's International Development Association (IDA), which provides subsidized loans to the world's poorest countries - more than half of them in Africa - have stagnated.

The poorest countries face a high degree of fiscal deficit, growing debts and interest payments. These factors end up diverting resources that should go to important areas such as education, health and social security.

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