The IMF has defended itself in response to a civil society campaign in Nicaragua (see Update 51). A 19 June letter from the IMF’s Nicaragua mission head blamed social spending constraints on “weaknesses of the structure and efficiency of social spending”. The IMF pinpointed spending on universities, the Supreme Court, transfers to municipalities and public sector wages as the largest impediments. Coordinadora Civil, a coalition of Nicaraguan NGOs, responded that the IMF should respect the constitution of Nicaragua which requires the municipal transfers and university spending. It also challenged the IMF characterisation of public sector wage increases for health and education workers as not being pro-poor.

the IMF should respect the constitution of Nicaragua