CSOs call on the IMF to end harmful surcharges
Dear members of the IMF Executive Board,
At last year’s Annual Meetings, Chair of the International Monetary and Financial Committee Ms. Nadia Calviño statedthat the Fund “will consider a review of surcharge policies.” As the 2024 Spring Meetings approach, it is our understanding that the Executive Board plans to make good on this commitment, and will soon hold discussions to determine the future of this controversial policy.
We are encouraged by these signs, and appreciate the Fund’s willingness to engage with this longstanding demand from a large majority of IMF’s shareholders, academics and civil society. Now, we, the undersigned organizations, write to urge you to use this opportunity to put an end to this harmful and counterproductive surcharge policy once and for all.
The case against surcharges has been made many times before. This policy — which levies additional fees of up to 300 basis points on countries with high or longstanding levels of outstanding credit — is plainly procyclical. By punishing heavily indebted countries with additional debt, surcharges increase borrowing costs; exacerbate (rather than alleviate) onerous debt burdens; and divert valuable resources from investments in development, climate action, health, or education. The surcharges policy therefore contributes to the trends of increased social and political unrest recognisedby the Fund as a risk to the global economy. It also disregards warnings about the urgent need for a more legitimate and equitable multilateral system in the UN Secretary General’s New Agenda for Peace.
From 2019 to 2023, the number of countries paying surcharges doubled from 8 to 16. This year, that number has jumpedto 22.* This alarming trajectory is likely to continue as more and more countries resort to the Fund for financing in the face of accelerating debt and climate crises.
The IMF has yet to provide any evidence that surcharges disincentivize reliance on IMF credit. Indeed, the growing number of countries subject to surcharges is evidence to the contrary. The other justification for surcharges — that they are a necessary source of income for the IMF’s precautionary balances — is not only directly counter to the IMF’s mission, as Nobel Laureate economist Joseph Stiglitz has pointed out, but is also inaccurate.
Since civil society first began raising concerns, opposition to the Fund’s surcharge policy has expanded considerably. The G77 and China, representing nearly every nation in the Global South, G20 chair Lula da Silva, UN human rights experts, leading economists, the UN Global Crisis Response Group, UN Secretary-General António Guterres, dozens of former heads of state and government, hundreds of civil society organizations, and many more, have all called on the Fund to suspend or eliminate surcharges.
As the burden of surcharges and global demands to end them both continue to grow, it is clear that this path is not sustainable. It is no longer a question of whether to end this unjust and unjustifiable policy, but when. We urge you to act now.
Sincerely,
*The 22 countries now paying surcharges are: Angola, Argentina, Armenia, Barbados, Benin, Costa Rica, Côte d’Ivoire, Ecuador, Egypt, Gabon, Georgia, Jordan, Kenya, Moldova, Mongolia, North Macedonia, Pakistan, Senegal, Seychelles, Sri Lanka, Tunisia, and Ukraine.
Organizations
«Green Armenia» Environmental Educational NGO, Armenia
11.11.11, Belgium
350.org, International
AbibiNsroma Foundation, Ghana
ACCIÓN ECOLÓGICA, Ecuador
Acción Jurídica Popular, Ecuador
ACEP, Portugal
ActionAid Australia, Australia
ActionAid International, International
Adéquations, France
Africa Development Interchange Network (ADIN), Cameroon
Africa Forum And Network On Debt And Development (AFRODAD), International
African Coalition on Green Growth(ACGG), Botswana
Agens, Switzerland
Ahmed Elseidi Law Firm, Egypt
Aid/Watch, Australia
Ajudeca, Angola
Akina Mama wa Afrika, Uganda
Al Bawsala, Tunisia
Alternative Law Collective (ALC), Pakistan
ALTSEAN-Burma, Burma
Amis de l’Afrique Francophone- Benin (AMAF-BENIN), Benin
Apostolic Ministerial International Network, Ghana
Asian Peoples’ Movement on Debt and Development, Philippines
Asociación Civil por la Igualdad y la Justicia (ACIJ Argentina), Argentina
Association de Lutte contre les Violences faites aux femmes et aux filles Extrême Nord Cameroun (ALVF EN), Cameroon
Association Djazairouna des familles victimes du terrorisme, Algeria
Association femme militante, Morocco
Association For Promoting Sustainable Development, India
Association intermédiaires pour le développement durable, Morocco
Association jeunes pour jeunes (AJJ), Morocco
Association LaSiesta pour la protection de l’environnement, Morocco
Association Tunisienne de Droit du Développement, Tunisia
Associazione Iroko Onlus, Italy
ATCP (Association Tunisienne des Contrôleurs Publics), Tunisia
ATED (Association Talassemtane pour environnement et développement), Morocco
Bangladesh Institute of Human Rights (BIHR), Bangladesh
Bank Climate Advocates, United States
Bank Information Center, United States
Barranquilla+20, Colombia
Biosophia NGO, Armenia
BNSK- Bangladesh Nari Sramik Kendra(Bangladesh Women Workers Association), Bangladesh
Both ENDS, Netherlands
Bretton Woods Project, United Kingdom
CADTM France, France
CADTM Pakistan, Pakistan
CAFOD, United Kingdom
Carbone Guinée, Guinea
Caribbean Policy Development Centre (CPDC), Barbados
CCFD – Terre Solidaire, France
CEDECAM/LATINDADD, Nicaragua
Center for Economic and Policy Research (CEPR), United States
Center for Economic and Social Development, Azerbaijan
Center for Economic and Social Rights (CESR), International
Center for Egyptian Women’s Legal Assistance (CEWLA), Egypt
Centre de Développement de la Région de Tensift, Morocco
Centre for Citizens Conserving Environment & Management (CECIC), Uganda
Centre for Economic Strategy, Ukraine
Centre for Financial Accountability, India
Centre for Human Rights and Climate Change Research, Nigeria
Centre for Muslim Youth In Peace And Development, Ghana
Centro de Derechos Económicos y Sociales — CDES, Ecuador
Centro de Estudios Legales y Sociales (CELS), Argentina
Changemaker Norway, Norway
Christian Aid, United Kingdom
Citizen’s Network For Community Development Zambia, Zambia
Civil Society SDGs Campaign GCAP Zambia, Zambia
Climate Finance Group for Latin America and the Caribbean, International
Climate Watch Thailand, Thailand
CNCD-11.11.11, Belgium
Co-ordination Office of the Austrian Bishops’ Conference for International Development and Mission (KOO), Austria
COAST Foundation, Bangladesh
Common Action Forum, Spain
Community Resource Centre, Thailand
Community settlement and Development Action (COSDA), Somalia
CONICET, Argentina
Coordinadora Civil de Nicaragua, Nicaragua
CORE, Nigeria
Crofter Foundation, Pakistan
CROSOL, Croatia
Debt for Climate South Africa, South Africa
Debt Justice Norway, Norway
debtWATCH Indonesia, Indonesia
Democratic Socialists of America, International Committee, United States
Development Alternatives with Women for a New Era (DAWN), Fiji
Dillinger Franziskanerinnen, Germany
Diverse Voices and Action (DIVA) for Equality, Fiji
Dorad Charity organisation, Italy
EcoClimate Vision, Congo, Democratic Republic of the
Ecology Africa Foundation, South Africa
Economistas sin Fronteras, Spain
EDER (Environnement, Développement et Énergies renouvelables), Guinea
Egyptian Human Rights Forum (EHRF), Egypt
Egyptian Initiative for Personal Rights (EIPR), Egypt
Ekumenická akademie (Ecumenical Academy), Czech Republic
Entraide et Fraternité, Belgium
ENVIRONICS TRUST, India
Equidad de Género: Ciudadanía, Trabajo y Familia, Mexico
erlassjahr.de, Deutschland
ESCR-Net, International
Espace de Solidarité et de Coopération de l’Oriental, Morocco
Estonian Roundtable for Development Cooperation, Estonia
Eurodad, International
EuroMed Rights, International
Extinction Rebellion Auderghem, Belgium
Fight Inequality Alliance, International
Financial Justice Ireland, Ireland
Focus of Disabled Persons, Kenya
Focus on the Global South, Thailand
Fondazione Proclade Internazionale-Onlus, Italy
FORUM DES CONTRIBUTIONS Maroc Coalition Dignite et Droits des Femmes MENA., Morocco
Forum Solidaridad Perú – FSP, Peru
Forum Tunisien pour les Droits Économiques et Sociaux, Tunisia
FOSDEH, Honduras
Foundation for the Conservation of the Earth, FOCONE, Nigeria
Freedom from Debt Coalition, Philippines
Friends of the Disabled Association, Lebanon
Friends of the Earth US, United States
Friends with Environment in Development, Uganda
Fundación Ambiente y Recursos Naturales (FARN), Argentina
Fundación Moneda y Sociedad, Ecuador
Fundacion SES, Argentina
FUNSALPRODESE, El Salvador
Gatef organization, Egypt
GDMR- Grupo Para o Desenvolvimento da Mulher e Rapariga, Mozambique
Gender Action, United States
Gender-Based Violence As A Public Health Issue, Nigeria
Génération contre la marginalisation, Tunisia
Gestos, Brazil
Global Call to Action Against Poverty (GCAP), Belgium
Global Justice Now, United Kingdom
Global Learning for Sustainability (GLS), Uganda
Global Policy Forum, International
Global Policy Forum Europe, Germany
Global Social Justice, Switzerland
Good Health Community Programmes, Kenya
GOSCOP, Angola
Greater Purpose Development Organization Sierra Leone, Sierra Leone
Greater Purpose for Development, Sierra Leone
Green Advocates International (Liberia), Liberia
Green Tax Youth Africa, Ghana
Groupe de Réflexion et d’Initiative pour l’Avancement de la Grand’Anse (GRIAG), Haiti
Grupo de Estudios en Finanzas Internacionales (GEFI) / Universidad Nacional de Rosario (UNR), Argentina
Hayat-RASED Center Jordan, Jordan
IBON International, International
IDdecoCR, Costa Rica
Initiative Citoyenne pour l’Environnement et le Développement Durable-ICED, Burundi
Institute for Economic Justice, South Africa
Institute for Economic Research and Policy Consulting, Ukraine
Institute for Political Economy, Sri Lanka
Institute of Analysis and Advocacy, Ukraine
International Federation of Social Workers, Switzerland
International Women’s Rights Action Watch Asia Pacific (IWRAW AP), Malaysia
Iroko Charity Organisation, Nigeria
ISER – Initiative for Social and Economic Rights, Uganda
ITUC / Global Unions Washington Office, United States
Jamaa Resource Initiatives, Kenya
Jubilee Debt Campaign UK, United Kingdom
Jubilee Scotland, Scotland
Jubilee USA, United States
Justice is Global, United States
JusticeMakers Bangladesh, Bangladesh
KRuHA – People’s coalition for the right to water, Indonesia
La Raíz – Pensamiento Crítico (Ec), Ecuador
Labour and Social Studies Group, South Africa
LATINDADD, Peru
Ligue des droits de l’Homme (LDH), France
MenaFem Movement for Economic Development and Ecological Justice, International
MenEngage Global Alliance, United States
Migrant Forum in Asia, Philippines
Mouvement pour la démocratie paritaire, Morocco
Movimiento Laudato Si, Peru
Movimiento Tzuk Kim pop, Guatemala
Mozambican Association for Active Citizenship, Mozambique
National Campaign for Sustainable Development Nepal, Nepal
National Society of Conservationists – Friends of the Earth Hungary, Hungary
Natural Justice, South Africa
New Rules for Global Finance, United States
NGO “Ekoltava”, Ukraine
NGO ASRAD (Appui Solidaire Pour le Renforcement de L’aide Au Develolppement), Mali
NGO Forum on the ADB, International
NGO: ADET, Togo
Observatoire d’etudes et d’appui a la responsabilite sociale et environnementale (OEARSE), Congo, Democratic Republic of the
Observatori del Deute en la Globalitzacio, Spain
Oikos – Cooperação e Desenvolvimento, Portugal
Oil Change International, United States
ONG EDER (Environnement, Developpement et Energies Renouvelables), Guinea
Organisation Guinéenne des Droits et Devoirs du Citoyen (OGDDC), Guinea
Organisation paysanne pour le developpement durable, Congo, Democratic Republic of the
Organizata Politike, Albania
Oxfam International, International
Oyu Tolgoi Watch, Mongolia
Pakistan Fisherfolk Forum, Pakistan
Pakistan Kissan Rabita Committee, Pakistan
Palestinian Human Rights Organization (PHRO), Lebanon
Partido Socialista Auténtico Federación Corrientes, Argentina
Partners In Health, International
Phenix Center for Economic and Informatics Studies, Jordan
Philippine Misereor Partnership Inc. (PMPI), Philippines
PHM Kenya, Kenya
Plateforme Française Dette et Développement (PFDD), France
Plateforme nationale des Citoyens Unis pour le Développement (PCUD), Guinea
Policy Research Institute for Equitable Development (PRIED), Pakistan
Press Freedom Advocacy Association, Iraq
Programa Gobernanza sobre el Cambio Climatico, Costa Rica
Project on Organizing, Development, Education, and Research (PODER), Mexico
PWESCR, India
RDPI, Pakistan
Reacción Climática, Bolivia
Realizing Sexual and Reproductive Justice, International
Recourse, Netherlands
Red de Justicia Fiscal de America Latina y El Caribe, International
Red Latinoamericana por Justicia Económica y Social – LATINDADD, International
Red Mexicana de Acción frente al Libre Comercio (RMALC), Mexico
ReFocus Consulting, Canada
RENICC, Nicaragua
Right to Education Initiative, International
Rivers without Boundaries Coalition Mongolia, Mongolia
Rural Area Development Programme (RADP), Nepal
Rural Development Policy Institute (RDPI), Pakistan
Rural Reconstruction Nepal, Nepal
Servicios Ecumenicos para Reconciliacion y Reconstruccion, United States
Shirakat – Partnership for Development, Pakistan
Sisters of Charity Federation, United States
SocDevJustice, Germany
Social Justice Platform, Egypt
Social Scientists’ Association, Sri Lanka
Society for International Development, International
Solidarité des Femmes sur le Fleuve Congo, Congo, Democratic Republic of the
South Asia Alliance for Poverty Eradication (SAAPE), Nepal
South Asia Tax and Fiscal Justice Network (SATaFJA), Nepal
South Feminist Futures, International
Southern Africa People’s Solidarity Network (SAPSN), International
Stichting Projekta, Suriname
Stop TB USA, United States
SWORD, Pakistan
The Egyptian Initiative for Personal Rights, Egypt
The Institute of the Blessed Virgin Mary (IBVM) – Loreto Generalate, International
The Kvinna till Kvinna Foundation, Sweden
The Norwegian Solidarity Commitee for Latin-America (LAG), Norway
THE ROADMAP FOR PEACEFUL JUST AND INCLUSIVE SOCIETIES, Nigeria
The Sentry, United States
The Society for Children Orphaned By AIDS Inc. (SOCOBA), United States
Third World Network (TWN), International
Training and Research Support Centre, Zimbabwe
Uganda Debt Network, Uganda
UNISC International, Japan
Unlad Kabayan, Philippines
Upeo social justice center, Kenya
urgewald e.V., Germany
Vikas Adhyayan Kendra, India
VILUTHU, Sri Lanka
VIVAT International, United States
Voces, Ecuador
VWA FANM AYISYÈN (VFA), Haiti
WECF International, Netherlands
Wedyan Association For Society Development, Yemen
WEED – World Economy, Ecology and Development, Germany
Wemos, The Netherlands
Win Without War, United States
WomanHealth Philippines, Philippines
Womankind Worldwide, International
Women Empowerment Against Poverty of Nepal (WEAPoN), Nepal
Women Media and Development, Palestine
Women’s Budget Group, United Kingdom
Women’s Environment and Development Organization (WEDO), United States
World Economy, Ecology & Development (WEED), Germany
Yemen Organization for Promoting Integrity, Yemen
Yemeni Observatory for Human Rights, Yemen
Youth Leader, Yemen
Zukunftskonvent Germany, Germany
Zurgaan buudal ngo, Mongolia
الجمعية التةنسية للحوكمة المحلية, Tunisia
المركز الفلسطيني لاستقلال المحاماه والقضاء -مساواه -, Palestine
جمعية الشباب لأجل الشباب, Morocco
جيل ضد التهميش, Tunisia
مركز ريادة CLER, Morocco
منظمة وسط رؤية Amid Vision Organisation, Tunisia
منظمه شؤون المراه والطفل, Iraq
وسط رؤية Amid Vision, Tunisia