Bangkok Protesters Reject IMF Call for Spending Cuts

‘Thai people already poor’: developing nations protest IMF’s austerity call

Hundreds of protesters took to Bangkok’s streets as the IMF and World Bank held their Annual Meetings in the Thai capital, calling for a change in how the institutions deal with the developing world.

Coconut farmer Sombat Chuekrod travelled more than 200km (120 miles) to join hundreds on the streets of Bangkok on Friday.

Protesters reject spending cuts

The demonstration took place as finance ministers, central bank governors and other top policymakers gathered this week in the Thai capital for the IMF-World Bank Annual Meetings.

Decision makers were tackling an inflation crisis fuelled by the Iran war and other economic shocks.

The meetings followed years of economic crises starting with the pandemic and continuing through the wars in Ukraine and the Middle East.

Against that backdrop, the IMF’s message has been clear: worldwide debt is too high and governments need to cut spending.

Critics say the IMF should focus on climate financing and tax reforms rather than demand governments cut subsidies and social spending.

That places the protest’s demands in direct opposition to the spending reductions being urged by the IMF.

A wider dispute over the IMF’s approach

For the hundreds at the protest in Bangkok, as well as for rights groups and analysts, that message was the wrong one.

Their objection reflects a broader disagreement over how governments should respond after years of economic crises, wars and other shocks.

While the IMF has emphasised high worldwide debt and the need to cut spending, critics have called for climate financing and tax reforms instead.

The protesters were therefore demanding changes in how the IMF and World Bank deal with the developing world.

Source: South China Morning Post