Incisive Journalism in Cameroon: The Best of ��Cameroon Report�� (1978 � 1986)

43. Cameroon Report 04/10/1981: The I.M.F. Tightens policy towards Third World

161 43 Cameroon Report 04/10/1981: The I.M.F. Tightens policy towards Third World Introduction: The annual meeting of the International Monetary Fund I.M.F. and the World Bank has ended in Washington with rich nations committed to further belt-tightening and poor nations left with little hope of increased aid. In his closing remarks to a nearly empty convention hall, I.M.F. Managing Director Jacques De La Rosière said the four-day meeting had produced a clear consensus on what he called a widespread and compelling need for strong policies of economic adjustment in member countries. Poor nations had come to the meeting to seek a substantial increase in aid to offset global problems of chronic inflations, high interest rates and unemployment. But American President Ronald Reagan set a gloomy tone of egoism when he told delegates that his plan to revive the American economy left no room for the United States, the biggest source of funds for the I.M.F. and the World Bank, to increase aid to the two organisations. George NGWA examines the implications of Mr Reagan’s statement: The American demand for tougher conditions on loans from the I.M.F. to countries with balance of payment problems was, to say the least, a slap in the face of poor nations. Granted that it has been widely accepted for some time now that the advent of the new masters in the White House marks a fundamental change of policy, the manner in which they have been singing the praises of an economic free-for-all has proved a surprise nonetheless. President Reagan and his 162 team must be credited with the guts of presenting themselves to the poor nations, to borrow the words of one delegate, as ugly Americans. For one thing, not only did the Reagan administration, backed by Britain, West Germany and Japan (with more reluctant support from France) prove insensitive to calls for more assistance from developing countries, they even talked of reorganising the World Bank, intimating in the process that this would amount to far more stringent conditions for cheap credits and outright grants as well as the freezing of special drawing rights for the poorest countries. In this gloomy atmosphere, calls from the third world for an annual increase of at least 13.8 billion dollars in funding for the I.M.F. fell at the wayside while supply-side economics was the order of the day to the detriment of the economies of poor countries. The austere tone adopted by Mr Reagan is certain to block the chances of any break-through at the next rich and poor nations’ confrontation later this month in Cancun Mexico . That would be unfortunate, for the malaise gripping the economies of most nations would remain a fixture for some time with repercussions on the economies of those countries which claim to be safe. Further intensification of poverty causes social, economic and political disorder in developing countries with severe repercussions on world peace. That’s inter-dependence. History would judge 1981 as a watershed in North-South relations. It would be a year in which all nations moved forward in a concerted attack on economic disparities or alternatively one in which they allowed a momentous opportunity to slip through their fingers. Major changes 163 should be made to create an international system sensitive to the needs of all. In other words, the world monetary institutions should be restructured to cope with the reality of Third World poverty. We are in a fog and in this fog the American co-pilot must change course, otherwise all of us will perish. George Ngwa 164 ...