§ 121. Mr. CorbynTo ask the Chancellor of the Exchequer what action he is taking to prevent the International Monetary Fund imposing conditions on loans to indebted countries which may harm the poorest people in those countries.
§ Mr. LilleyThe purpose of programmes supported by the International Monetary Fund is to help stabilise economies and so create the right environment for sustained growth, thus reducing poverty. Some of the poorest groups may benefit immediately—for instance farmers, through the introduction of agricultural reforms giving them better prices for their crops. The fund is aware that there may be short-run adverse effects on other poor groups, and is ready to help design programmes in a way which minimises these, with help from the World Bank. But it cannot impose any given income distribution—this has to be for the countries concerned to decide.