An arduous debate has developed around the question of whether the multiple IMF’s ‘stabilization’ interventions in developing countries have actually met one of the most important of its initial programmatic goals, i.e., the provision of resources to members, with a view to eliminating temporary Balance of Payments maladjustments, avoiding at the same time destroying ‘national or international prosperity’. More importantly, there have been many voices claiming that these programs have rather accentuated poverty than alleviated it. We explore this claim both theoretically and empirically. Our results show an unequivocal negative relationship between IMF lending and poverty in the developing world.
Adam C. S. and Bevan D. L. (2001) ‘Fiscal policy design in low-income countries’, Paper prepared for the UNU/WIDER research project on ‘New Fiscal Policies for Poverty Reduction and Growth’, Helsinki: UNU/WIDER.
Adedeji A (1999) ‘Structural adjustment policies in Africa’. International Social Science Journal, 51, 521–528.
Adeyemi S L, Ijaiya G T, Ijaiya M A and Kolawole S D (2006) ‘Determinants of human development in Sub-Saharan Africa’, African Journal of Economic Policy, 13, 15–33.
Akabzaa T and Darimani A (2001) ‘Impact of mining sector investment in Ghana: a study of the Tarkwa mining region’, Draft report for SAPRI.
Akinbobola T O and Saibu M O (2004) ‘Income inequality, unemployment, and poverty in Nigeria: a vector autoregressive approach’, The Journal of Policy Reform, 7, 175–183.
Alexander S S (1952) ‘Effects of a Devaluation on a Trade Balance’, Staff Papers - International Monetary Fund, 2, 263–278.
Ames B, Brown W, Devarajan S and Izquierdo A (2001),‘Macroeconomic policy and poverty reduction’, International Monetary Fund Draft for Comments, Washington, D.C.: IMF.
Anwar T (1996) ‘Structural Adjustment and Poverty: the case of Pakistan’, The Pakistan Development Review, 35, 911–926.
Appleton S, Kagugube J and Muwonge J (1999) ‘Changes in poverty in Uganda, 1992–1997’, University of Oxford, Working Paper Series no. 22.
Banchirigah S M (2006) ‘How have reforms fuelled the expansion of artisanal mining? Evidence from sub-Saharan Africa’, Resources Policy, 31, 165–171.
Bayliss K (2002) ‘Privatisation and poverty The distributional impact of utility privatisation’, University of Greenwich, Working Paper Series no. 16.
Berg A and Krueger A (2003) ‘Trade Growth and Poverty’, IMF, Working Paper Series no. 30.
Bernal R L (1984) ‘The IMF and class struggle in Jamaica, 1977–1980’, Latin American Perspectives, 11, 53–82.
Bird G (2004) ‘Growth, poverty and the IMF’. Journal of International Development, 16, 621–636.
Boyer R (2012) ‘The four fallacies of contemporary austerity policies: the lost Keynesian legacy’. Cambridge journal of economics, 36, 283–312.
Bradshaw W Noonan, GashR L and Buchmann Sershen C (1993) ‘Borrowing against the future: children and Third World indebtedness’. Social Forces, 71, 629–656.
Cashin P, Mauro P, Patillo C. and Sahay R (2001) ‘Macroeconomic policies and poverty reduction: stylized facts and an overview of research’, IMF, Working Papers Series no. 135.
Chossudovsky M (2003)The Globalization of Poverty and the New World Order, Pincourt (Quebec): Global Research, Center for Research on Globalization (CRG).
Collier P and Gunning J W (1999) ‘The IMF's Role in Structural Adjustment’ The Economic Journal, 109, F634–F651.
Corden M and Neary P J (1982) ‘Booming sector and de-industrialisation in a small open economy’, The Economic Journal 92, 825–848.
Council of Economic Advisers (1973) Annual Report of the Council of Economic Advisers, Washington D.C.: United States Government Printing Office.
Crisp B F and Kelly M J (1999) ‘The socioeconomic impact of structural adjustment’, International Studies Quarterly, 43, 533–552.
Dabour N M (1999) ‘The impact of stabilization and Structural Adjustment Programmes (SSAPs) on human development and poverty alleviation. The experience of some OIC member countries’, Journal of Economic Cooperation, 20, 39–66.
De Vogli R and Birbeck G L (2005) ‘Potential impact of adjustment policies on vulnerability of women and children to HIV/AIDS in Sub-Saharan Africa’, Journal of Health Population and Nutrition, 23, 105–120.
Dell S (1982) ‘Stabilization: The Political Economy of overkill’, World Development, 10, 597–612.
Dercon S and Krishnan P (1998) ‘Changes in poverty in rural Ethiopia 1989–1995: Measurement, robustness tests and decomposition’, Department Economie- Center for Economic Studies Discussion Paper Series DPS 98.19, Leuven Katholikie Universiteit.
Díaz-Alejandro C F (1963) ‘A Note on the Impact of Devaluation and the Redistributive Effect’, The Journal of Political Economy, 71, 577–580.
Díaz-Alejandro C F (1984) ‘Latin-American debt: I don’t think we are in Kansas anymore’, Brookings Papers on Economic Activity, 2, 335–389.
Diz A C (1984)‘The Conditions Attached to Adjustment Financing; Evolution of the IMF Practice’, The International Monetary System: Forty Years After Bretton WoodsProceedings, 2140-325.
Dollar D and Kraay A (2002) ‘Growth is good for the poor’, Journal of Economic Growth, 7, 195–225.
Dornbusch R (1973) ‘Devaluation, money, and nontraded goods’, The American Economic Review, 63, 871–880.
Downing T E (2002)‘Avoiding new poverty: mining-induced displacement and resettlement’, London: The International Institute for Environment and Development – The Mining, Minerals and Sustainable Development (MMSD) project.
Elbadawi I A, Ghura D and Uwujaren G (1992) ‘World Bank adjustment lending and economic performance in Sub-Saharan Africa in the 1980s. A comparison with other low-income countries’, World Bank, Working Paper Series no. 1000.
Foxley A (1983)Latin American Experiments in Neoconservative Economics, Berkeley and LosAngeles: University of California Press.
Frey R S and Field C (2000) ‘The determinants of infant mortality in the Less Developed Countries: a cross-national test of five theories’, Social Indicators Research, 52, 215–234.
Friedman M (1969)The optimum quantity of money: And other essays, Chicago: Aldine Transaction.
Friedman M and Heller W W (1969)Monetary vs. fiscal policy, New York: W. W. Norton and Company, Inc.
Friedman M (1982) ‘Monetary Policy: Theory and Practice’, Journal of Money, Credit and Banking, 14, 98–118.
Friedman M (1983) ‘Monetarism in Rhetoric and in Practice’, Bank of Japan Monetary and Economic Studies, 1, 1–14.
Geo-Jaja M A and Mangum G (2001) ‘Structural adjustment as an inadvertent enemy of human development in Africa’, Journal of Black Studies, 32, 30–49.
Girvan N (1980) ‘Swallowing the IMF medicine in the seventies’, Development Dialogue, 2, 55–74.
Grant J P (1984)The State of the World's Children, Oxford: Oxford University Press, 1984.
Gudikunst N (2004) ‘The Social Impact of the International Monetary Fund: Structural Adjustment Programs in Latin America from 1980–2000’, Master's Dissertation (Graduate School of Creighton University, Omaha, Nebraska).
Gujarati D (2011)Econometrics by example, Hampshire, New York: Palgrave Macmillan.
Gylfason T (2001) ‘Lessons from the Dutch disease: causes, treatment, and cures’, Institute of Economic Studies, Working Papers 1987–2001 (Formerly Iceland Economic Paper Series no. W01:6).
Haddad L, Ruel M T and Garrett J L (1999) ‘Are urban poverty and undernutrition growing? Some newly assembled evidence’, Food, Consumption and Nutrition Division Discussion Paper No. 63, International Food Policy Research Institute.
Hajro Z and Joyce P J (2009) ‘A true test: do IMF programs hurt the poor?’ Applied Economics, 41, 295–306.
Handa S and King D (1996) ‘Structural adjustment policies, income distribution and poverty: A review of the Jamaican experience’, World Development, 25, 915–930.
Helleiner G K, Cornia G A and Jolly R (1991) ‘IMF adjustment policies and approaches and the needs of children’, World Development, 19, 1823–1834.
Hilson G and Potter C (2005) ‘Structural adjustment and subsistence industry: artisanal gold mining in Ghana’, Development and Change, 36, 103–131.
Hojman D E (1996) ‘Economic and other determinants of infant and child mortality in small developing countries: the case of Central America and the Caribbean’, Applied Economics, 28, 281–290.
Huang J (1995) ‘Structural disarticulation and Third World human development’, International Journal of Comparative Sociology, 36, 164–183.
IMF (2011) Articles of Agreement of the International Monetary Fund (1944), Washington DC: International Monetary Fund.
Ismi A (2004)Impoverishing a continent: the World Bank and the IMF in Africa, The Halifax Initiative Coalition. Ottawa: Canadian Centre for Policy Alternatives-National Office.
Jamal H (2003) ‘Poverty and inequality during the adjustment decade: Empirical findings from household surveys’, The Pakistan Development Review, 42, 125–135.
Jensen N and Wantchekon L (2004) ‘Resource wealth and political regimes in Africa’, Comparative Political Studies, 37, 816–841.
Johnson H G (1972) ‘The monetary approach to Balance-of-Payments theory’, The Journal of Financial and Quantitative Analysis - Supplement: Outlook for the Securities Industry, 7, 1555–1572.
Johnson O and Salop J (1980)‘Distributional aspects of stabilization programs in developing countries’, IMF Staff Papers No. 27.
Jolly R (1991) ‘Adjustment with a human face: a UNICEF record and perspective on the 1980s’, World Development, 19, 1807–1821.
Kaldor N (1970) ‘The new monetarism’, Lloyds Bank Review, 97, 1–18.
Kanbur R S (1987) ‘Measurement and Alleviation of Poverty: With an Application to the Effects of Macroeconomic Adjustment’, IMF Staff Papers No. 34.
Kanji N (1995) ‘Gender, poverty and economic adjustment in Harare, Zimbabwe’, Environment and Urbanization, 7, 37–56.
Killick T and Malik M (1992) ‘Country experiences with IMF programmes in the 1980s’, The World Economy, 5, 599–632.
Konadu-Agyemang K (2000) ‘The best of times and the worst of times: structural adjustment programs and uneven development in Africa: the case of Ghana’, Professional Geographer, 52, 469–483.
Krugman P and Taylor L (1978) ‘Contractionary effects of devaluation’, Journal of International Economics, 8, 445–456.
Kyle, S. (1989). ‘Structural Adjustment, Agriculture, and Natural Resources in Africa’, in J. P. Lassoie and S. C. Kyle (ed.), Policy Reform and Natural Resource Management in Sub-Saharan Africa, Ithaca NY: College of Agriculture and Life Sciences Cornell University, 11–33.
Laffer A B and Agmon T (1978) ‘Trade, payments and adjustment: the case of the oil price rise’, Kyklos, 31, 68–85.
Lohani S (2004) ‘Effect of foreign aid on development: does more money bring more development?’ The Park Place Economist, 12, 110–120.
Loko B, Mlachila M, Nallari R and Kalonji K (2003) ‘The impact of external indebtedness on poverty in low-income countries’, IMF, Working Paper Series no. 61.
Lopes C (1999) ‘Are structural adjustment programmes an adequate response to globalisation?’, International Social Science Journal, 162, 511–519.
Lugalla J L (1995) ‘The impact of structural adjustment policies on women's and children's health in Tanzania’, Review of African Political Economy, 22, 43–53.
Mazur R E (2004) ‘Realization or deprivation of the right to development under globalization? Debt, structural adjustment, and poverty reduction programs’, GeoJournal, 60, 61–71.
Meade J (1956) ‘The price mechanism and the australian balance of payments’, Economic Record, 32, 239–256.
Meade J (1957) ‘The Balance-of-Payments problems of a European free-trade area’, The Economic Journal, 67, 379–396.
Meertens B (2000) ‘Agricultural performance in Tanzania under structural adjustment programs: is it really so positive?’, Agriculture and Human Values, 17, 333–346.
Meller P (1991) ‘Adjusting and social costs in Chile during the 1980s’, World Development, 19, 1545–1561.
Minujin A (1995) ‘Squeezed: the middleclass in Latin America’, Environment and urbanization, 7, 153–165.
Morrison K M (2007) ‘Natural resources, aid, and democratization: A best-case scenario’, Public Choice, 131, 365–386.
Mosley P, Subasat T. and Weeks J (1995) ‘Assessing adjustment in Africa’, World Development, 23, 1459–1473.
Noorbakhsh F and Noorbakhsh S (2006) ‘The Effects of Compliance with Structural Adjustment Programmes on Human Development in Sub-Saharan Africa’, in A. Paloni and M. Zanardi (ed.), The IMF, the World Bank and Policy Reforms, London: Routledge, 147–161.
Oberdabernig D A (2012) ‘Revisiting the Effects of IMF Programs on Poverty and Inequality’, WU Vienna University of Economics and Business, Working Paper Series no. 144.
Pastor M J (1987) ‘The effects of IMF programs in the Third World: Debate and evidence from Latin America’, World Development, 15, 249–262.
Perotti R (2012) ‘The “Austerity Myth”: Gain Without Pain?’, in Fiscal Policy after the Financial Crisis, Chicago: University of Chicago Press.
Petras J and Brill H (1986) ‘The IMF, austerity and the state in Latin America’, Third World Quarterly, 8, 425–448.
PolakJ J (1990) ‘Financial policies and development’, International Center for Economic Growth, Occasional Paper Series no. 11.
Polak J J (1991) ‘The changing nature of IMF conditionality’, OECD Development Centre, Working Paper no. 41.
Polak J J (1997) ‘The IMF monetary model. A hardy perennial’, Finance and Development, 34, 16–19.
Ravallion M (2001) ‘On the urbanization of poverty’, World Bank, Policy Research Working Paper no. 2586.
Rodrik D (1996) ‘Understanding economic policy reform’, Journal of Economic Literature, 34, 9–41.
SAPRIN, S. A. (2001)The policy roots of economic crisis and poverty. A multi-country participatory assessment of structural adjustment, Executive Summary, Washington, D.C.: Joint World Bank/Civil Society Structural Adjustment Participatory Review Initiative (SAPRI) and the Citizens’ Assessment of Structural Adjustment (CASA).
Sen A (1995)Mortality as an indicator of economic success and failure, Innocenti Lectures, Florence: United Nations Children's Fund - International Child Development Centre.
Shandra J M, Nobles J, London B and Williamson J B (2003) ‘Dependency, democracy, and infant mortality: a quantitative, cross-national analysis of Less Developed Countries’, California Center for Population Research, On-Line Working Papers Series no.27.
Shen C and Williamson J B (2001) ‘Accounting for cross-national differences in infant mortality decline (1965–1991) among Less Developed Countries: effects on women's status, economic dependency, and state strength’, Social Indicators Research, 53, 257–288.
Simons H C (1936) ‘Rules versus Authorities in Monetary Policy’, Journal of Political Economy, 44, 1–30.
The Chronic Poverty Research Centre - CPRC (2005)The Chronic Poverty Report 2004–05, Manchester: University of Manchester - Institute for Development Policy and Management.
Thiele R (2003) ‘The social impact of adjustment in Bolivia’, Journal of International Development, 15, 299–319.
UN (2011) Human Development Report 2011. Sustainability and equity: a better future for all, United Nations Development Programme (UNDP), New York: Palgrave Macmillan.
UN (2012) World Urbanization Prospects: The 2011 Revision, United Nations - Department of Economic and Social Affairs, Population Division.
Wade R H and Sigurgeirsdottir S (2012) ‘Iceland’s rise, fall, stabilisation and beyond’, Cambridge journal of economics, 36, 127–144.
Walton J and Ragin C (1990) ‘Global and national sources of political protest: Third World responses to the debt crisis’, American Sociological Review, 55, 876–890.
Wanniski J (1975) ‘The Mundell-Laffer Hypothesis. A New View of the World Economy’, The Public Interest, 39, 31–52.
Weissman S R (1990) ‘Structural adjustment in Africa: insights from the experiences of Ghana and Senegal’, World Development, 18, 1621–1634.
Wiesner E (1985) ‘Latin American debt: lessons and pending issues’, The American Economic Review, 75, 191–195.
Whitman Marina V N, Branson W H, Fand D I, Krause L B and Salant W S (1975) ‘Global Monetarism and the Monetary Approach to the Balance of Payments’, Brookings Papers on Economic Activity, 3, 491–555.