Economic Policies for Social Justice

The 2024 Annual Meetings of the IMF and World Bank took place in Washington, DC, against a backdrop of pressing global challenges, including rising debt burdens, economic instability, climate change, and growing inequality. The meetings brought together finance ministers, central bankers, private sector stakeholders, and civil society to discuss these challenges, particularly the role of international financial institutions (IFIs) in addressing global inequalities and supporting sustainable development.

This year's meetings were marked by calls for a rethink of the IMF's austerity-driven programs and the World Bank's focus on short-term indicators. Recent reforms, such as quota and surcharge reform, were seen as insufficient. Participants emphasized the urgent need to reshape financial policies to ensure long-term, transformative impact in developing countries. Much of the discussion revolved around the 80 years of the Bretton Woods institutions and the need for deep, non-BWI-led reform.

Civil society organizations presented a comprehensive checklist of reforms, emphasizing the need for systemic change to address global inequalities. Key demands included

• UN Framework for Sovereign Debt Resolution: a multilateral, transparent, UN-led debt resolution mechanism to address unsustainable debt and prevent future crises.
• UN Convention on International Tax Cooperation: creation of a framework to combat tax abuse, including by multinational corporations.
• Reform of public-private partnerships (PPPs): review of PPPs, blended finance and other instruments that can divert resources from public services. These financing models often increase public debt without providing adequate returns to citizens, particularly in terms of basic services such as health, education and access to water.
• Establish a UN public credit rating agency: creation of an international public credit rating agency to counterbalance the influence of private rating agencies, which often restrict the fiscal space of developing countries.
• Inclusive financial governance and climate finance: adoption of rights-based approaches that integrate human rights and gender equality into financial policies. This approach is essential to ensure that financial governance is aligned with the Sustainable Development Goals (SDGs) and global climate goals.​

The 2024 Annual Meetings of the IMF and World Bank reflected the growing demand for a shift in financial governance toward more inclusive, democratic, and sustainable frameworks. Civil society's participation was pivotal in highlighting the shortcomings of current financial models and pushing for transformative change.