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Malawi And The International Monetary Fund ( Imf ) For Help

Decent Essays
In the late 1990’s, Malawi was facing financial hardships due in part to an AIDS epidemic. Gauding. The country reached out to the International Monetary Fund (IMF) for help. The IMF imposes strict rules that countries looking to obtain financial aid must adhere to, in many cases causing the country in need severe social problems, including in the case of Malawi when they asked for aid to help mitigate the unfortunate circumstances that had left many in the country in severe poverty, a poverty that had developed to the level that the poverty itself was causing death and health problems in the form of starvation and lack of basic medical solutions. The IMF stipulates that the countries it offers aid to must stop giving subsidies to its citizens. Gauding. In the case of Malawi, the local government was giving subsidies to farmers for nitrogen fertilizers, which allows food to be grown to feed the nations people. Once the IMF demanded a stop to these subsidies, the rate of starvation sky rocketed.

Finally, after years of the country’s citizens starving – many literally to death -- due to the lack of food caused by the Malawi government’s abandonment of offering fertilizer subsidies to the nation’s farmers, a government regulation that was effectively imposed by the IMF’s strict rules, the elected president Bingu wa Mutharika decided to re-implement the fertilizer subsidies to the nations farmers, an act directly in contradiction of the mandate of the IMF. Dugger. With the
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