In July, rising transport and fuel prices in Ecuador led to strikes and public protests, and an up-rising by thousands of indigenous people who are also concerned about privatisation plans.
IMF policies have exacerbated corruption according to a Christian Aid briefing on new approaches to debt relief.
G7 finance ministers have agreed a framework to include the private sector in future crisis bailouts.
Clare Short, UK Secretary of State for International Development, has called in parliament for the reform of the IMF’s ESAF loans to make them pro-poor.
The G7 have agreed changes to the Heavily Indebted Poor Country Debt Initiative which will impose more conditionality in return for earlier relief from interest payments.
Mr Jagdeo, Guayanese Finance Minister, has attacked the IMF for its lack of commitment to debt reduction and using the HIPC Initiative as a means of forcing countries to comply with ESAF programmes.
Investors’ growing aversion to risk is leading to a general withdrawal of finance from many Southern countries.
An estimated 70,000 people demonstrated in Birmingham to call on G8 leaders to cancel poor countries’ unpayable debts.
In addition to extending the IMF’s role, its governors have been examining measures to prevent future financial sector crises.
Borrowers from the International Bank for Reconstruction and Development (IBRD), the main World Bank lending arm, may have to pay higher charges for their loans in the future.