Activists urge IMF, World Bank to cancel Uganda’s worrying public debt

The World Bank and the International Monetary Fund (IMF) must stop their “financial imperialism” that is exploiting the global south, and instead, focus on creating a democratic, equitable, and just finance global world order, activists have said. 

Debt For Climate Uganda, a local chapter of the Global Debt For Climate movement says on top of the discussions at the ongoing IMF-World Bank spring meetings in Washington DC, should be the cancellation of “illegitimate debt” that the global south owes to the two powerful financial institutions. 

Arthur Musingunzi, national coordinator of Debt for Climate Uganda cites the London Agreement of 1953 in which Germany’s debt was cancelled, as a precedent for debt relief for the most indebted nations in the global south. 

“As governments converge in Washington for the IMF-World Bank spring meetings, they’re confronted with the daunting prospect that 2023 might be the year that the global south debt will be at its worst peak like that which took place in the early 1980s that led to the infamous decades in Latin America and Africa,” said Musinguzi.

Adding; “African countries are among the hardest hit by excessive debt, hindering their ability to invest in critical areas such as healthcare, education, and infrastructure. This not only perpetuates poverty and inequality but also undermines global efforts to achieve sustainable development and address the climate crisis on the continent.”