IMF provides new financing for the poorest countries
Share
In April, ONE members from around the world urged the International Monetary Fund (IMF) to use profits from a proposed gold sale to help the world’s poorest countries weather the financial storm brought on by the global financial crisis .
And last week, the IMF came through with a package of new assistance for low-income countries (LICs) that goes a long way towards fulfilling what we asked for from world leaders. Leaders at the IMF and the US Treasury Department even credited ONE with being the driving force behind this victory for the world’s poor!
Beginning at the London G20 Summit, there was favorable language for this effort in the communiqué. Then, prior to the IMF Spring Meeting, ONE’s Bob Geldof and the organization Jubilee worked closely with House Financial Services Chair Barney Frank and the US Treasury in delivering on the G20 communique’s promise – to leverage IMF resources for the poorest countries, particularly by leveraging the planned sale of a small portion of the IMF’s gold reserves.
Building on intense negotiations and campaigning from ONE members, Bob Geldof met with IMF head Dominque Strauss-Kahn in late April to make the case and brought along petition signatures from more than 50,000 ONE members, a day he described in this video.
The resulting initiative increases IMF’s concessional lending capacity to poor countries to $17b through 2014, $8b of which will be available in the first 2 years. All loans (including current loans) to LICs will be 0% interest for 2 ½ years (through 2011). And the IMF will permanently lower interest rates thereafter.
It’s not a perfect deal and we remain concerned about LICs re-accumulating debt burdens that ONE members and other advocates have worked so hard to relieve. But there is heavy demand for this financing from across the developing world and this deal makes those funds available at very reasonable terms.
-Aaron Banks
- Previous Post New BIT for Mauritius
- Next Post Clinton on Kenyan Governance
 |
 |
 |
Featured Series
About the Blog
The ONE Blog is a daily log of the anti-poverty movement. The site is operated by ONE staff, with frequent contributions from volunteers, members and partner organizations.
The ONE Blog updates readers daily with the latest in global development news and analysis and what ONE members and our partners are doing around the world to influence world leaders in the fight against global poverty.
The content of each post and each comment represents the views of that author and does not necessarily reflect the views of ONE or ONE Action. ONE does not support or oppose any candidate for elected office, and any post expressing support or opposition for a candidate is not endorsed by ONE.
August 7, 2009 at 4:49 pm
If you support a world bank or a world government, then you ultimately support slavery, regardless of guise they portray (”helping poor countries”, riiiight):
The sole purpose of the IMF and Worldbank, and any other central bank, is to the ENSLAVE the human race with debt. Here’s how it works:
If you spend 40% of your HARD EARNED MONEY on taxes (30% income, 10% sales and other taxes), taxes that go to pay interest on your government’s AMORTIZED debt, you actually are spending 2 days out of your 5-day work week (that’s the 40%, kids), just to pay these taxes (not enjoy the fruits of your labor), that is SLAVERY.
If you work for 2 days, and don’t get paid, you were a slave for 2 days.
If you support this movement, YOU SUPPORT SLAVERY.
GET A CLUE. Stop distorting information, facts and language. And Vote Ron Paul ASAP.
August 8, 2009 at 6:06 pm
Oh Jah, if you knew JAH then you would know that Rasta supports NO poly-tricks (or politics) – not even Ron Paul.
Take it from a Rasta woman from creation. So JAH seh…
ONE Love, debbie
August 10, 2009 at 10:02 am
Another great job! Working as ONE we are moving in the right direction. Let us keep the pressure on. Transparency, accountability, empowerment, these are the pathways to real reform.
August 10, 2009 at 10:12 am
I think it great that people are working hard to help the poorest nations on earth.
Jah in slavery you have no choice and you are the property of another.
If you choose not to work you don’t have to pay taxes.
If you choose, however, to benefit from the roads that the government built and the police forces that protect you, from the banking system that allows the ingenuity of the human race to flourish than you have to pay taxes. If we didn’t have schools and infrastructure and grants to universities I would hate to see the state of the US. I know libertarianism sounds good on paper but so does anarchy and communism if you argue them well enough.
We need real world solutions to real world problems.
ONE Love indeed!
August 10, 2009 at 10:13 am
Fantastic job ONE members! The Golden Rule is the Law of the Land. After 400 years of pillaging Africa, there is a new fresh breeze of justice. It is so exciting to be a part of this important movement. If the U.S. can spend $500+ Billion per year on killing people (more than all the other countries of the world COMBINED), we can lead the way in a positive way. If the G20 countries gave 1% of their GDP to the poorest countries, we could eliminate poverty in our lifetime! Pretty exciting.
August 10, 2009 at 10:17 am
Baby steps in the right direction are just that baby steps in the right direction. Keep marching toward the goal line !!!
August 10, 2009 at 10:21 am
Yes ! There are always some who cant stand our government supporting any great cause thinking the small amt of $$ saved will somehow solve all our econimic problems !!!
August 10, 2009 at 10:21 am
Very commendable work in our task of global poverty amelioration. Congratulations!
August 10, 2009 at 10:32 am
Wonderful news. It feels good to know that signing petitions actually have impact.
- One little citizen of the world
August 10, 2009 at 10:35 am
One Campaign has diligence, longevity, sincerity, and the overpowering locomotion that makes things happen for the world’s poorest people. It is called humanity, compassion and goodwill in the highest measure. Thank you One Campaign for being here!
August 10, 2009 at 10:49 am
A small step in the right direction. However ’sharing’ should replace ‘lending.’ Until we share all our resources freely, we will not know peace. There’s enough of everything for everyone. Why should poor countries, whose citizens subsist in dismal conditions, be burdened with more and more debt while rich countries wallow in luxury and greed ?
August 10, 2009 at 10:50 am
I think it is very exciting that ONE and others have secured $8 billion. Of course, let us hope that some do not skim any of it for overhead.
Jah, why try to bring down people that have worked endless hours to achieve $8 billion when there was nothing?
As stated by James, when a you are a slave you have no options. People in poor countries have no options because they have been enslaved with poverty. That is the reason ONE exists, to end the poverty and break those chains. Eventually, self-sufficiency can be a result and the world will be a better place. There are no simple answers to poverty except for people with a human consciousness to use the tools of negotiation and influence to bring about change.
To all those on the front lines of the negotiations, thank you for a job well done.
August 10, 2009 at 10:55 am
Oddly enough,there is an advantage for all of us if the One World Government and/or Money succeeds.Don’t forget that if WE are united world wide,even as “slaves”, we out-number THEM 10,000 to 1.
Not bad odds for a global revolution.
Keep the faith.All will be fine in the end.
August 10, 2009 at 11:11 am
I support ONE and I know how committed you are to the poor of the world. I just wonder what strings were attached to these loans? In the past, the IMF and World Bank have put terrible conditions on their loans that hurt the poor by requiring the governments to cut social spending, etc. I hope these loans will truly help people in poverty.
August 10, 2009 at 11:17 am
Winning the gold, and sharing it! Bravo!
August 10, 2009 at 11:37 am
Most of us are aware that institutions like the IMF and the World Bank were created to maintain the current balance pf power. However, to achieve results in the policy areas most overlooked (guiding attention to the world’s poorest), the only actions that matter have to be performed within the accepted boundaries of the system…Criticizing is easier than being creative, inaction is worse than lending your voice (through a click of your mousse, or an email) to the voices of those who can’t speak for themselves.
August 10, 2009 at 11:53 am
“If you give a cup of water in Love,you have given it also unto me.Jesus Christ. May the Amazing Grace of the Great Good Creator bless abundantly above all you ask or think.(Bono ,Carlos Santana& Bob Geldof are my personal role models ).God bless All of You! In Faith Carry On!
August 10, 2009 at 12:13 pm
Job well done, the Success of organizing is always wonderful!
August 10, 2009 at 12:16 pm
get rid of all forms of currency.
August 10, 2009 at 12:36 pm
Thank God! Humanity is finally showing it’s will to survive by coming together as One.
August 10, 2009 at 3:19 pm
amazing effort
August 10, 2009 at 3:35 pm
What I can’t understand why Barney Frank was given the power by all of his “girly-men” liberal cronies, in the US and wound up representing the US in this. The man should be in jail, not representing the US. I agree “And Vote Ron Paul ASAP” If you don’t believe this allegation, just type in any keywords and
Google them… Ron Paul’s political views and Barney Frank Scandal. That’s if you can approach these 2 subjects with open minds, and in my opinion this is one thing that liberals can’t do.. I quote the good doctor:
Precisely where liberals talk about being independent and on their own, you will find them practicing the most rigid conformity in dress, in speech, in moral attitudes and in thinking. Sometimes they follow fashion at the expense of integrity. They dread being alone. They do not want to stand out or be different. They want to conform.
August 10, 2009 at 4:05 pm
I am more than 100 miles from Washington, more than 3,000 miles from London, and more than 7,000 miles from Africa. Who said my small voice cannot be heard? An honor to work together with other global citizens! Thank you!
August 10, 2009 at 4:08 pm
great!!
August 10, 2009 at 4:14 pm
Jah is correct. I’m surprised Geldof has anything to do with IMF. IMF is how many of these poor nations became poor in the first place. It’s a rotten group that poses as helpers when in fact, they are just exploiting the people they pretend to help. No interest for two years, lovely, but they won’t be able to pay the money back in two years, so the interest will start. Even at a low rate, it will compound, and year after year the bars on that jail will get thicker and thicker, until there is no way out, just like the situation they are in now. This started decades ago, and Bono went around the world trying to get relief for them. He got some too. This is just starting up the same old engine over again. They paint a very pretty picture, and it is so gratifying for everyone to say, “Look, humanity is finally doing good!!” But behind that wall of smoke and mirrors is the heart of corporate business, there is no selflessness here. It is just a disguise for a scheme that will transfer more wealth to wealthy members of the IMF.
August 10, 2009 at 4:16 pm
What would be meaningful is if someone GAVE them the money to pay off their existing debt. That’s what Bono got done, a lot of debt forgiveness. That was actually some good that got done. This is short term thinking that will result in more long term suffering.
August 10, 2009 at 4:22 pm
Great work! ONEness does it!
August 10, 2009 at 4:36 pm
As a conservative independent I am all for the first world helping out the third world for something other than our own needs. But my question is what guarantees do we have that this money won’t end up in the same place so many of the other billions in relief has ended up, in the Swiss bank accounts of a bunch of tin pot despots who care little or not at all about their own population’s plight. There has to be a way to get these billions to the truly needy and by pass their greedy leaders.
August 10, 2009 at 4:52 pm
“There has to be a way to get these billions to the truly needy and by pass their greedy leaders.” Hear, hear!
August 10, 2009 at 5:54 pm
I reside in a small town in N.C. USA. I am a world away from all the suffering that is going on in the poorest countries of the world. All I know about it is what I read and what I’m told by those that have been there. I’m told about the strong preying on the weak, both internally and externally and I think its just terrible. I can see that there are indeed people out there that are doing all they can to help those in need. All I personally know to do is sign the petitions and try to do what little I can to help. To see pictures and videos of the people in Africa and others suffering is just to sad for words. Living in terrible conditions that are unsafe with disease and bloodshed, women being raped, tainted water supplies, sometimes going without food and water for days……………Bono, Matt Damon, George, Nick Clooney, Mia Farrow, all those that don’t get the recognition they deserve…………I applaud All of you………….Keep up the great work…..
August 10, 2009 at 6:07 pm
a step in a positive direction……congrats!
August 10, 2009 at 6:09 pm
Regardless of location, it’s always rewarding to help anyone in need. Thanks for the opportunity to support ONE.
August 10, 2009 at 6:14 pm
AMAZING!!
August 10, 2009 at 8:36 pm
She already said what I wanted to say..
Angela Hayden:
Wonderful news. It feels good to know that signing petitions actually have impact.
- One little citizen of the world
August 11, 2009 at 2:32 am
I will get involved,when this orginization gets involved and start speaking against the atrocities that Islam does to christians and murder them and behead them,because they won’t convert to Islam,It’s happening in Africa,in the Sudan,Rwanda,Uganda,Somalia in Afghanistan,Iran,Iraq,Pakistan,Indonesia,North Korea,China,Thailand.Well the Christians wants justice.When is this organization are going to get involved.
August 11, 2009 at 12:35 pm
Okay, so what was the point of all that Jubilee talk a few years ago? Cancelling the debts of poor nations to help them get on their feet? Aren’t all these new loans, no matter how “low interest” they may be, just going to plunge these countries back in debt again?
I signed the petition because something is better than nothing. But I have a feeling that we’re just recreating a situation that Bono and a bunch of other activists like him, worked their butts off to get fixed the first time. With the economy the way it is now, how successful will they be in cancelling the debts of poor nations the next time around?
I know I sound like a “party pooper”, and I don’t mean to bash the good that people are trying to accomplish now, I guess I’m just making this comment because what’s happening now, seems to me to fly in the face of what was accomplished before.
August 11, 2009 at 12:58 pm
In the words of Obama, “Lllllook….”.
This isn’t a left vs. right issue. This is a right vs. wrong issue. As long as you support the existing institutions (Republicans vs. Democrats, Central Banking, Bureacratic “How’s”, Politicians & K-Street Lobbyists, etc.) that have failed you and I and the rest of humanity over and over again, we are not going to ever get to where we want, which I would say are the ideals of this movement.
When I say things are done under the guise of doing right, I mean you have to now look out for this everywhere you go. For example: What was the root of the problem with the housing crisis? It all started when policticians told banks to expand their standards beyond what was historically proven as sound lending strategies: http://www.nytimes.com/1999/09/30/business/fannie-mae-eases-credit-to-aid-mortgage-lending.html
Check the date on that article.
Obviously there is more to that issue, but that is the basic cause. But again, this was under the guise of “Promoting Homeownership”, but look what happened as a result! Hardworking families lost 40% of their savings! That’s hard-earned money! That’s time spent that they can’t get back! Why? So politicians could get re-elected in 1998, 2000, 2002 because they were part of the “expansion of homeownership”? Do you see the greed here by the politicians whose K-streeters lobbyied for this (campaign financing). These are the Goldman Sachs of the world who now pay themselves billions in bonuses using TARP money. I mean, this is absurd and this is hardly rocket science, which is my frustration.
James, I understand what you are saying. I’m not saying libertarianism is perfect, nor am I a libertarian. The problem with your statement (besides the FACTS that 1. None of us need banking to “flourish our ingenuity”, and 2. Ron Paul is more Republican than Ronald Reagan), is that everything you described, that I use, that is provided by the government, accounts for a fraction of a percentage of the total budget. I’m willing to pay taxes on those domestically-spent items. Frankly, why not keep the same budget, replace the war spending with aid spending, and this whole issue in Africa doesn’t exist in 6-months.
There’s your real world solution.
The fundamental problem with “banking flourishing ingenuity” is the definition of “standard of living”, the premise that the more crap I buy and own, the better off I am. GDP is a consumer-based number, even though it specifically says “Product” in the anacronym, and its very misleading. I suppose the hippies got something right.
When you deal with the IMF, Worldbank, or any central banking for that matter, You are indebted at birth. You are forced, as a citizen of a government in-debt, to pay taxes to pay that debt. Isn’t that a good example of not having a choice? Or being owned? If I want to live my life to its fullest, in most cases that involves having a career and a purpose. Inevitably that will require employment.
So, you are saying, either don’t life your life, or be a slave (to debt)? Those are my options given your argument, because the fact is that central banking owns everyone born under governments they influence. I’m enlaved by poverty if I don’t drink the Central Banking kool-aid, and I’m enslaved by debt if I do.
This is great that everybody on this comment board is engaging, and I’m not saying these aren’t great ideals and this isn’t a good cause. Of course they are! But we’ve seen this happen in history a million times. As in everything, the ideals are great, but the “how” makes it impossible if not for the underlying consequences (debt).
What good is not living in poverty if you are only to be someone else’s slave? Debt is slavery.
My point is that distortion of language, history and facts is so apparent and misleading, that we all need to be a bit more cognisant of the REAL purpose of these activities. In this case, it is too good to be true.
August 11, 2009 at 1:12 pm
you and I don’t have $8 billion dollars. only big business and big banks. they don’t give it up for nothing. look for conditions on the loan approval to be in extremly fine print.
August 11, 2009 at 1:35 pm
This is AWESOME! Great effort ONE members.
God Bless!
August 11, 2009 at 1:47 pm
why is it we always help other countrys when our country is going under i am a business owner who cant get a loan for a bailout and my business is to provide transportation for food to be delivered to states who need it and to deliver help to places who have been affected by wheather like new orleans when a hurricane is coming we gear up with FEMA to help crisis areas……doing that and cant get a little help
August 11, 2009 at 2:29 pm
I finally feel like I’ve made a difference. It’s gratifying, but it’s not time to rest on my laurels. Baby steps, then walking, then running. We all will eventually get there. Where is there? Is it a utopia of sorts? Possibly! How about a world where poverty is a rarity, not the norm; diseases are hard pressed to become epedemic; and AIDS is under control. For so many people to have in the day and age we are in and not to do anything for the have nots is criminal. I want to be known for what I did and for the differences I made, not what I could have or should have done. Do something! Stop delaying greatness to the grave!!!
August 11, 2009 at 5:59 pm
ONE IS GREAT I LOVE THIS
August 11, 2009 at 8:42 pm
congrats to all one
everlivin, everlovin
I am working with Papua New Guinea, Nigeria, Ghana, and Native American tribes
I would be interested where the IMF contact is for the poverty reduction funds
thank you
johnd
August 12, 2009 at 7:06 pm
Hi,
I want to say thank you the the ONE business part of the organization. You folks have a slick operation that is extremely user friendly. The world is a little better because of your efforts. -Rob
August 13, 2009 at 6:26 pm
8 billion dollars is a great start to funding the war on poverty. The money should be put in a high interest savings account and a percentage of the return on the interest should be used calculated precisely so that this money will grow through secure means. If it is protected carefully from taxing governments, commercial interest, private spending, religious and cultural interests with an iron wall of only funding the poor destitute and those below a high standard of living and allowed to grow, It could become a 100 billion dollar fund quickly and grow forever into the future. If spent wisely it could be a constant flow of money for the absolute ending of poverty in the entire world and even much more a fund used to create wealth amongst all people who stand for kindness and knowledge regardless of cultures or beliefs. This would skyrocket the growth in all companies and enterprises and spur knowledge technology and creativity throughout the entire earth by removing the limitations of lacking of anything for anyone loving under the sun by creating a world full of wealthy people. It would be a winning situation for everyone. There are billions of situations that would arise in a situation such as this positive and negative but they would have to be worked through. We are very intelligent beings and can work through the many issues that will arise. But by doing nothing we will never see change. Everything is scary. Most people thought Christopher Columbus would fall off the edge of the world on his voyage to find the Americas. This would be an ultimate change to a world of Nirvana. There would still be criminals there would still be rogue entities but we would deal with each situation with knowledge and not fear. It would take every government ,company ,institution ,and person on earth working together to make this work. If you want more info on my ideas email me at my myspace http://www.myspace.com/find_your_own_reality. Pursue Peace Namaste
August 14, 2009 at 1:49 am
Please re-think this plan. The IMF has a terrible legacy of being a front for those Chicago School of Business “free market” radicals. They will loan those monies under these conditions;
1.) All national corporations (power, agricultural, manufacturing, hospitals, police, etc.) must be sold to outside corporations immediately for pennies on the dollar.
2.) All wages must be cut by one half to stimulate the influx of carpetbaggers (see above). All unions are immediately disbanned and any groups meeting are subject to beatings and/or imprisonment.
3.) All trade tariffs, taxes and public welfare scrutiny will be stopped immediately so more profits can be taken offshore faster.
4.) All laws hindering foreign ownership of any national asset are to be abolished. All laws limiting the transfer of local currencies are also summarily repealed.
5.) All farmers are to use Round-Up Ready seeds only of the GMO variety. No holding over seeds for next years planting as they must be purchased new or face fines, imprisonment and loss of land.
The IMF and the World Bank did this (chronologically) in Chile, Argetina, China, Russia and it looks like they are headed back for round Three of economic raping and pillaging down south.
Please don’t appluad wha you don’t understand.
August 22, 2009 at 11:17 pm
thanks for the great job, ONE! I agree it’s wonderful to know that signing my name on a petition can be so powerful. Ending world poverty must be one of our highest aims and achievements. You would not believe the poverty in third world countries unless you have seen it. We Americans are so blessed and are called to share our blessings to end world hunger, which is achievable. Yay ONE!!!
August 24, 2009 at 3:59 am
Just want to remind you that anyone who supports the IMF, the World Bank, and the WTO, is supporting
sweatshops and slave wages (unsustainable labor rights), giving away water rights-I hope Cochabamba
Bolivia is still fighting Bechtel over this- Bechtel was supported by IMF or World Bank (that’s unsustainable human rights) and Monsanto wanting to feed the Global South with harmful genetically engineered
crops. I hope Bono and Geldof read this…
August 24, 2009 at 4:02 am
Oh sorry and that last I mentioned goes under unsustainable environmental
practices.
October 18, 2009 at 6:46 pm
The IMF I believe does what it can to help poor countries…but corporations all over the world influence the IMF and other international organizations. How does One know exactly where the money is going? The article mentioned it was going to poor countries…does the mean poor developed countries or poor developing countries? And does the IMF specifically name which country it’s giving money to and how much? One has done many great things for the world. I am in no way undermining that, I am just curious when IMF and other such international organizations get involved.
October 19, 2009 at 11:02 am
http://www.globalresearch.ca/index.php?context=va&aid=15686