BANGKOK: (News Desk) – Hundreds of protesters took to the streets of Bangkok on Friday, urging the International Monetary Fund (IMF) and World Bank to overhaul their economic policies and reconsider their approach to developing countries struggling with mounting debt, inflation and rising living costs.
Among the demonstrators was coconut farmer Sombat Chuekrod, who travelled more than 200 kilometres to join the protest. He called on the two international financial institutions to rethink their role, warning that ordinary Thai citizens were already facing financial hardship and should not be pushed further into poverty.
Finance ministers, central bank governors and senior policymakers gathered in the Thai capital this week for the IMF-World Bank Annual Meetings, where discussions focused on mounting economic challenges, including inflation driven by the US war on Iran and other global shocks.
The IMF has urged governments to rein in public spending and rebuild their financial reserves after years of economic disruption, including the COVID-19 pandemic and conflicts in Ukraine and the Middle East. However, protesters, rights organisations and economic analysts argue that austerity measures could deepen poverty and disproportionately hurt vulnerable communities.
Demonstrators called on the institutions to prioritise climate financing, fairer taxation and stronger social protection instead of pressing governments to reduce subsidies and spending on essential public services.
“Governments across the Global South are being forced to squeeze vital spending on public health, education, and social protection just to service illegitimate debts to wealthy nations and private creditors,” protest organiser Lidy Nacpil said in a statement.
Oxfam Warns of Growing Inequality
Oxfam Executive Director Amitabh Behar told AFP on the sidelines of the meetings that the world was facing an “inequality emergency”. He criticised calls for fiscal consolidation, arguing that spending cuts during a period of war-related inflation could undermine essential support for low-income households.
Behar warned that reducing public expenditure could intensify price pressures, increase hunger and further weaken access to healthcare, education and basic social security at a time when people need these services most.
The IMF revised its global economic outlook upwards this week, pointing to unexpectedly resilient economic growth. However, it cautioned that the benefits remained unevenly distributed, leaving vulnerable economies increasingly exposed to global economic shocks.
According to the Fund, low-income countries that rely heavily on imported oil and have little exposure to the investment boom in artificial intelligence face some of the greatest risks.
Despite these concerns, the IMF has continued to recommend that governments address rising debt by controlling expenditure and rebuilding fiscal buffers after years of crisis-related spending.
IMF Deputy Director of Research Petya Koeva Brooks acknowledged that vulnerable countries faced more difficult circumstances but told AFP they had limited options beyond improving their fiscal balances through spending reductions or higher revenues.
The Fund has also advocated better-targeted energy and food subsidies introduced after the outbreak of the Iran war. However, the UN Development Programme warned this week that completely eliminating such support could push 130 million people into poverty.
Nacpil questioned how authorities could fairly determine which citizens qualified for assistance and which should be excluded, highlighting concerns that poorly designed subsidy reforms could leave struggling households without adequate support.
Experts Call for Alternatives to Austerity
Reza Baqir of Alvarez & Marsal’s Sovereign Advisory Services, who previously served as governor of Pakistan’s central bank, said he had witnessed the challenges governments face when balancing public needs against the conditions attached to IMF programmes.
Baqir stressed that countries must also address domestic governance weaknesses, strengthen their own revenue-generating capacity and build fiscal reserves. Such measures, he said, could reduce dependence on IMF assistance while enabling governments to support citizens more effectively.
Christina Segal-Knowles of the Rockefeller Foundation said developing countries were effectively being forced to choose between borrowing at exceptionally high interest rates and implementing severe spending cuts that could jeopardise their development targets.
She proposed a fresh approach to economic growth and investment, including greater financial support for countries in need through concessional funding arrangements that offer more affordable financing.
Meanwhile, demonstrators in Bangkok prepared to spend the night beneath a flyover as their protest continued.
Activist Supaporn Malailoy said the demonstration was intended to ensure that ordinary citizens had a voice in discussions shaping economic policy and national development.
She emphasised that the debate extended beyond borrowing and repayment, arguing that decisions taken by international financial institutions would influence the future direction of countries and the well-being of their populations.
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