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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

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The Role of IMF in Policy Making in Bangladesh

Source: Unnayan Onneshan

Unnayan Onneshan organized a round table discussion on “The Role of IMF in Policy Making in Bangladesh” at CIRDAP auditorium on 20th October, 2007. Md. Iqbal Ahmed presented a paper on the issue. Ahmed showed the effect of IMF policies with empirical data and ended with questioning its role. Mr Ahmed argued that when Bangladesh needed an investment friendly environment to generate employment and output to eradicate poverty, the IMF advised the government to tightly manage demand and offered policy advice which was contradictory, which has destabilised the economy with low investment, low capital formation, low output and low employment thus leading to staglation. At the same time the IMF's advice to cut public spending has further marginalised the poor.

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