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COSATU encourages IMF to support public investment

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COSATU is amongst those calling for the IMF to support public investment, according to a recent tweet, instead of propagating for public wage bills to be cut.

The Congress of South African Trade Unions (COSATU) took to Twitter on Wednesday, 14 October 2020, to call on the International Monetary Fund (IMF) to endorse public investment. COSATU, along with other international worker federations, such as Action Aid, Public Services International, and Education International, hosted a joint webinar on the IMF’s stance.

According to the statement on the webinar, the IMF hoodwinked many countries by providing financial relief at the start of the pandemic. However, it added, “Loans distributed from April to July this year contain ‘commitments’ for governments to implement new or renewed austerity programmes as soon as the immediate health crisis has peaked, with little provision for any recovery period.”

This is said to be the loophole giving the IMF the ability to bypass the Government Wage Bill, which “puts countries in a ’straight-jacket’ by putting pressure on them to suppress spending as part of broader economic adjustments.”

The statement acts as a call to financial institutions to band together to implore the IMF to support public investment.

See the post below.

Sabelo Makhubo
[email protected]

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