In Indonesia a government decision to raise fuel and electricity prices as part of its current IMF programme sparked riots early January. The government backed down, despite threats by donors (led by the World Bank) that this might jeopardise financial support. Donors did not carry out their threats, as unrest risked derailing the entire adjustment programme and because of concerns about disturbances in the world’s largest Muslim country. The crisis has increased pressure from legislators not to continue borrowing from the Fund. In January the government announced it would not seek to extend the arrangement which expires at the end of 2003.
Donate to the Bretton Woods Project
The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).