The Importance of Renegotiating Loans

In countries across the Global South, the launch of IMF programs often sparks considerable concern. This is because of the IMF’s reputation: during the 1980s, many nations in Africa, Asia and Latin America turned to the IMF seeking loans to mitigate economic challenges. These loans were accompanied by stringent conditions, and countries faced pressure to reduce public subsidies and social spending, downsize the public sector workforce, and increase taxes. We speak with two researchers about the impact of IMF loans on recipient countries and why countries continue to rely on IMF loans. We also discuss potential alternatives to this system.

Featuring Danny Bradlow, a professor of International Development Law and African Economic Relations and senior fellow at the University of Pretoria in South Africa, and Attiya Waris is Ambassador of Fiscal Law and Policy at the University of Nairobi in Kenya.

This episode of The Conversation Weekly was produced and written by Mend Mariwany, who is also the show’s executive producer. Sound design is by Eloise Stevens, and our theme music is by Neeta Sarl. Full credits for this episode are available here. Sign up here for a free daily newsletter from The Conversation.

Further reading: 

• When the IMF comes to town: why they visit and what to watch out for
• IMF says it cares about inequality. But will it change its ways?
• Government debt won’t necessarily burden future generations – but austerity will
• African debt: how to break unequal relationships in financing deals