IfW in the News

The IMF comeback in Africa


Rainer Thiele says the IMF that provides financial assistance to its members has learned from its mistakes, but it still cannot solve actual problems.

Excerpt from the Article

(...) "All things considered, one can say these adjustment programmes were not successful," said Rainer Thiele, an Africa expert at the Kiel Institute for the World Economy in Germany. In fact, most countries had their repayment difficulties in check in the short term, Thiele told DW. However, they subsequently failed to make it onto the "long-term growth path."

Meanwhile, even IMF economists criticize the organization's methods. In an internal paper published in journal in 2016, the authors said that at lease some of the reforms that were imposed in the past had led to more inequality and hampered economic growth.

Effectively it was a learning curve for the IMF, said Thiele. Dealings with recipient countries now sees much more emphasis placed on matters such as good governance and social concerns than in the past.

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