§ 27. Mr. John CryerTo ask the Secretary of State for International Development what assessment she has made of the impact of IMF structural adjustment programmes on the economies of the third world. [89779]
§ Clare ShortLast year's review of the IMF's Enhanced Structural Adjustment Facility (ESAF) recommended that the IMF should take more account of the social impact of their programmes, consider the quality of government expenditure and protect budgets in high priority areas such as health and education. We strongly welcomed this and are encouraging the IMF to work more closely with the World Bank to ensure that, in designing structural adjustment programmes, they take account of the impact on the poor. Following a proposal put forward by the UK, the World Bank is working with the IMF and the UN to develop good principles and practices of social policy, which will be drawn upon in the design of World Bank and IMF programmes. We continually emphasise the need for the IMF to build support for reform programmes, through discussion and consultation with civil society, so that they lead to economic growth which benefits the poor. A report on the implementation of the recommendations of the ESAF Review is expected in September.