Policies influenced by the International Monetary Fund (IMF) and the World Bank may have fuelled political protests across the world, including in Kenya where a deadly Gen Z revolt nearly brought the down government.

A report by an independent expert, tabled before the United Nations General Assembly in July, states that austerity measures prescribed by the IMF in countries such as Bangladesh, Kenya, Indonesia, and the Kashmir region have provoked mass protests—often met with violent suppression by military and police forces.

According to the report, bitter IMF economic pills such as wage freezes, subsidy cuts, value-added tax hikes, and drastic reductions in public expenditure have fueled public outrage and revolt in these nations.

In 2024, IMF-driven subsidy cuts in Pakistan-administered Jammu and Kashmir triggered fatal unrest over soaring food and energy prices.

In Bangladesh, budget cuts imposed under an IMF programme worsened unemployment and inflation, catalysing student-led protests that left over 200 dead and thousands injured, including women and children.

The report notes that currently, 85 percent of the global population lives under austerity measures—a figure expected to rise in 2025—with women disproportionately bearing the brunt of these policies.

Titled, Effects of Foreign Debt and Other Related Financial Obligations of States on the Full Enjoyment of All Human Rights, Particularly Economic, Social and Cultural Rights, the report asserts that IMF-backed measures reduce public employment opportunities, shrink access to healthcare, raise the cost of living, and exacerbate unpaid care burdens on women and girls.“These structural adjustment policies do not just undermine economies—they unravel the social fabric and perpetuate gender inequality,” the report states.

Despite widespread evidence of harm, the IMF continues to resist calls to incorporate binding human rights impact assessments into its programs.

At the domestic level, more countries are shifting their approach to debt and military financing. For instance, Germany recently began retooling car manufacturing plants into arms factories following a constitutional change that allows the country to take on more debt for the first time in over 40 years.

The report criticises international financial institutions—including the IMF, World Bank, and regional development banks—for indirectly enabling conflict by promoting economic policies that lead to instability. While these policies are intended to foster development, they often worsen inequality, misallocate resources, and fuel unrest.

It cites the Marcos dictatorship in the Philippines (1965–1986), during which the IMF and World Bank loaned the regime over $5.5 billion despite widespread corruption and human rights violations.“Their support provided not only financial legitimacy but also moral endorsement, catalyzing further aid and credit from private banks,” the report adds.“By funding repressive regimes and harmful initiatives, international financial institutions risk actively contributing to the erosion of democratic space and human rights.”While case studies offer strong qualitative evidence, the report notes a lack of systematic research mapping the causal links between financial support from international financial institutions, militarisation, and the long-term decline of rights, peace, and equality—and the associated impact on lives, livelihoods, and futures.“Infrastructure and land reforms backed by international financial institutions have sparked displacement and conflict, while the austerity policies promoted by the IMF have fueled protests across the Global South,” the report states.

Although the UN Security Council and General Assembly have passed numerous resolutions advocating for peace, their efforts are often undermined by vetoes and unilateral actions taken by states and entities that disclaim responsibility for human wellbeing.

Ultimately, the report concludes that financial actors and fiscal decisions made by various stakeholders directly affect global peace.

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