According to Action Aid, famine in Malawi has been compounded by World Bank-guided food policies. “The World Bank has been encouraging Malawi’s government to keep foreign exchange instead of storing grain, which the bank argues could lose value. The pressure to service an outstanding bank loan prompted Malawi to sell 28,000 tonnes of stored maize to Kenya just three months before the food crisis hit.” President Bakili Muluzi confirmed that the IMF and the WB “insisted that Malawi had to sell the maize to repay the commercial banks.”
New BWP briefing offers critical gender analysis of World Bank lending instrument to borrowing countries.
At 75, the World Bank and IMF face a crisis of multilateralism in no small part of their own making as failed economic policies have resulted in skepticism of the international order they helped to create.
Donate to the Bretton Woods Project
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).