Dear International Monetary Fund Board of Directors,
This Friday October 11, 2024, the International Monetary Fund (IMF) is expected to announce reforms to its policy on charges and especially surcharges, which levies extra fees on countries whose debts have surpassed certain size and time thresholds. We the undersigned urge the IMF to meaningfully reform its policies, especially on surcharges.
Research shows that IMF surcharges are procyclical and regressive, extracting higher lending rates and fees from countries during financial crises when they should be investing in their own recovery. For years, researchers and advocates have documented how the current surcharge policy prevents low and middle-income countries from regaining financial stability, including by piling on higher borrowing, and preventing access to international markets. Surcharges increase the total potential annual interest rate imposed by the IMF to almost 8%. Moreover, the arguments put forward in defense of the surcharges have shown to have little if any validity.
We are concerned by reports that the IMF is not considering significant reforms that would remedy the flaws inherent in its surcharge policy. We fear that the IMF is instead contemplating insufficient half-measures. Tinkering at the edges will not help ensure global stability. The IMF itself projects that the number of countries paying surcharges will keep increasing. Already, 675 million people live in low- and middle-income countries whose taxpayers are projected to pay the IMF roughly $2 billion just in surcharges every year for the next five years. Every one of those dollars is a dollar not spent on health, education, and the clean energy transition. If the IMF Board maintains its current system of charging the taxpayers of already struggling, indebted countries extra surcharge fees, which cushion its general reserves, its members cannot expect that we will perceive the Fund as the steward of global financial stability that it was founded to be and confidence and trust in the Fund will diminish.
Sincerely,
Joseph Stiglitz, University Professor, Columbia University, Recipient of Nobel Memorial Prize in Economics, 2001
Kevin Gallagher, Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University
Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, USA
Martin Guzman, Professor, Columbia University SIPA; former Minister of Economy of the Republic of Argentina
Axel Kicillof, Governor of the Province of Buenos Aires, Argentina
Mariana Mazzucato, Professor in the Economics and Innovation and Public Value, University College London
Thomas Piketty, Professor, Paris School of Economics
A. Haroon Akram-Lodhi, Professor of Economics, Global Justice and Development, Trent University, Peterborough, Canada
Aaron Schneider, Professor, University of Denver
Adebayo Adekunle Ademayowa, Associate Professor of Economics and Ag. Dean, College of Management and Social Sciences Education, Lagos State University of Education, Oto/Ijanikin, Lagos State, Nigeria
Agostina Costantino, CONICET, Argentina
Alan B. Cibils, Universidad Nacional de General Sarminento
Aldo Caliari, Senior Director of Policy and Strategy, Jubilee USA Network
Alejandro Vanoli Cátedra, Grupo Fénix, University of Buenos Aires Argentina
Alicia Puyana Mutis, Economics Professor at FLACSO-México
Alice Sodano, Paris School of Economics
Anamitra Roychowdhury, Jawaharlal Nehru University, New Delhi, India.
Andres Arauz, Academic and Policy Researcher, Centre for Economic and Policy Research, Washington DC, USA
Andrew Fischer, Professor of Inequality, Social Protection and Development, Institute of Social Studies, Erasmus University Rotterdam
Ann Pettifor, Director, Policy Research in Economics
Arthur MacEwan, Professor Emeritus of Economics, University of Massachusetts Boston
Avinash Persaud, Special Advisor to the President of IDB
Barry Herman, Social Justice in Global Development
Basil Oberholzer, Austria
Brett House, Columbia School of Business
Byasdeb Dasgupta, Kolkata India
Carlo D’Ippoliti, Sapienza University of Rome
Carlos Lopes, Professor, Nelson Mandela School of Public Governance, University of Cape Town, and former Executive Secretary, UN Economic Commission for Africa
Carolina Alves, Associate Professor of Economics at the UCL Institute for Innovation and Public Purpose
Carmine Gorga, President, The Somist Institute
Cecilia Rikap, Associate Professor of Economics & Head of Research, University of College London, Institute for Innovation and Public Policy
Chang Kyung-Sup, PhD, SNU Distinguished Professor of Sociology, Seoul National University
Christina Laskaridis, Professor, The Open University UK; University of Oxford
CP Chandrasekhar, Research Director, International Development Economics Associates and Fellow, Political Economy Research Institute, University of Massachusetts Amherst
Damon Silvers, Visiting Professor of Practice, Institute for Innovation and Public Purpose, University of College London and former Policy Director, AFL-CIO
David Barkin, Distinguished University Professor, Universidad Autónoma Metropolitana, Mexico
Daouda Sembene, AfriCatalyst CEO and former IMF Executive Director
Débora M Nunes, Assistant Professor, Pasquale Monmouth University
Dharam Ghai, Director, United Nations Research Institute for Social Development (Past)
Dilli Raj Khanal, PhD, Founder Chairman , Institute for Policy Research and Development (IPRAD)
Eduardo Strachman, Associate Professor of Economics, São Paulo State University, Brazil
Emilia Millón, Professor of Macroeconomic and Economics and Gender at Tucumán University, fellow at ISES-CONICET and part of Espacio para la Equidad Fiscal (Space for Fiscal Equity) in Argentina
Emmanuel Tweneboah Senzu, Professor of Law and Economics, Blackstone Africa-Asia Jurists Center, Sierra Leone, West Africa. Every Nation College Building Sima II
Eric LeCompte, Executive Director, Jubilee USA Network
Eva Joly, Lawyer, Paris Bar, ICRICT
Fadhel Kaboub, President, Global Institute for Sustainable Prosperity
Fayq Al Akayleh, Associate Professor of International Economics
Firat Demir, L.J. Semrod Presidential Professor of Economics, Co-Director, Center for Peace and Development, Senior Researcher & Co-Founder, Security in Context
Francis Cripps, Alphametrics Co., Ltd.
Francisco Cantamutto, IIESS UNS-CONICET, Depto. Economía UNS
G.N. Nagaraj, Retired Professor, University of Karnataka
G. Visakh Varma, Visiting Professor, M.E.S School of Architecture, Kuttippuram, Kerala State, India
Gaston Nievas Offidani, Paris School of Economics
Gerald Epstein, Professor of Economics, University of Massachusetts Amherst, USA
Gerald Friedman, Professor of Economics, University of Massachusetts Amherst, USA
Gertrude Dzifa Torvikey, Institute of Statistical, Social and Economic Research (ISSER), University of Ghana
Giovanni Dosi, Professor, Sant-anna School of Advanced Studies, PISA
Gilad Isaacs, Executive Director, Institute for Economic Justice
Giuseppe Tattara, Professor of Economics (emeritus), University of Venice, Cà Foscari, Italy
Guillaume Long, Senior Research Fellow, Center for Economic and Policy Research
Gustavo Indart, Professor Emeritus of Economics, University of Toronto
Gustavo Beliz, Academician, The Pontifical Academy of Social Sciences
Ha-Joon Chang, Research Professor of Economics, SOAS, University of London
Hung Tran, Nonresident Senior Fellow, Atlantic Council
Ignacio Silva Neira, PhD Student and Research Associate, Berlin School of Economics and Law & Executive Director of the Observatory of Economic Policies (OPES)
Ilene Grabel, Distinguished University Professor, Josef Korbel School of Int’l Studies, University of Denver, USA
Ilias Alami, Assistant Professor in Political Economy, Cambridge University
Irene van Staveren, Professor of Pluralist Development Economics, International Institute of Social Studies of Erasmus University Rotterdam
Isabel Estevez, Oxford University
Isabel Ortiz, Director Global Social Justice, IPD; former Director at United Nations’ ILO and UNICEF
Isabella M. Weber, Associate Professor of Economics, University of Massachusetts Amherst, USA
Ishac Diwan, Professor American University of Beirut and Paris School of Economics
Iyabo Masha, Director and Head of Secretariat, The Intergovernmental Group of Twenty-Four
James K Boyce, Emeritus Professor, University of Massachusetts Amherst, USA
James K. Galbraith, The University of Texas at Austin
James Heintz, Professor of Economics, University of Massachusetts Amherst, USA
John Miller, Professor of Economics, Wheaton College, Norton, MA 02766
Jorge Forero, Latin American Faculty of Social Sciences (Ecuador)
Jorge Garcia-Arias, PhD, Full Professor, International Political Economy & Global Development Studies, University of Leon (Spain)
Jorge Remes Lenicov, Former Minister of Economy, Republic of Argentina
Jose Antonio Ocampo, Columbia University
José Gabriel Palma, University of Cambridge and University of Santiago de Chile
Juan Pablo Bohoslavsky, Researcher, National Scientific and Technical Research Council of Argentina (CONICET)
Jude Onemolease, Market Systems Leader, Durandel Market System Development (DuraLab), Durandel Ltd, Nigeria
Jwala Rambarran, Senior Policy Advisor, Caribbean Policy Development Centre
K.N.Harilal, Chairman, State Finance Commission, Kerala, India
Kathleen McAfee, Professor Emerita, International Relations, San Francisco State University
Kim Jacinto-Henares, Commissioner, ICRICT
Kofi Takyi Asante, Institute of Statistical, Social and Economic Research (ISSER), University of Ghana
Kunibert Raffer, Associate Professor, University of Vienna
Lance Patrick Vicher, Research Assistant, Institute for Nationalist Studies
Laura Carvalho, Open Society Foundations and University of Sao Paulo
Laurie Joshua, Consultant Economist, Labour and Social Protection (World Bank, EU, UN)
Leandro M. Bona, Researcher and Assistant (CONICET, UNLP, FLACSO-Argentina)
Lee Badgett, Professor Emeritrix of Economics, University of Massachusetts Amherst, USA
Leonardo E. Stanley, Associated Researcher at CEDES – Argentina
Leonce Ndikumana, Distinguished Professor of Economics, University of Massachusetts Amherst
M. Abul Kalam Azad, Doctoral Candidate, Natural Resources Institute, University of Manitoba, Canada
Machiko Nissanke, Professor (Emeritus), SOAS, University of London
Magdalena Sepulveda Carmona, Executive Director; Global Initiative for Economic, Social, and Cultural Rights (GI-ESCR)
Maia Colodenco, Director of Global Initiatives, Suramericana Vision
Malik Owusu Antwi (Rev), Executive Director, Blessed Pan-African Youth For Rural Development
Manuel F. Montes, Senior Advisor, Society for International Development
Marcelo Sanchez Sorondo, Bishop of Vescovio, Former Professor of History of Philosophy at Lumsa University (Rome) and Chancellor of the Pontifical Academy of Sciences and Social Sciences
Marilou Uy, Non-Resident Senior Fellow, Boston University Global Development Policy Center
Marina Zucker Marques, Senior Academic Researcher for the Global Economic Governance Initiative, Boston University
Mark Weisbrot, Co-Director, Center for Economic Policy Research, Washington DC
Maria Victoria Murillo, Professor, Columbia University
Martin Lousteau, Senator and Former Minister of Economy of the Republic of Argentina
Matías Vernengo, Professor of Economics, Bucknell University, New Palgrave Dictionary of Economics, Editor in Chief
Matti Kohonen, Director, Financial Transparency Coalition
Michael Ash, Professor of Economics, University of Massachusetts Amherst, USA
Michael Galant, Senior Research and Outreach Associate, Center for Economic and Policy Research
Michael Pettis, Carnegie Endowment
Mona Ali, State University of New York
Muneer Babu M., Assistant Professor of Economics, University of Calicut
Mwangi wa Githinji, Professor of Economics, University of Massachusetts Amherst, USA
Narender Thakur, University of Delhi
Neva Goodwin, Boston University and Tufts University
Odd Hanssen, Tax and Health Specialist, UNDP-Sustainable Financing Hub
Pasquale De Muro, Professor, Dept. of Economics, Roma Tre University (Italy)
Patricia Fahy, Assemblymember, New York State Assembly
Patricia Miranda, LATINIDAD
Paul Robert Gilbert, Senior Lecturer in International Development, School of Global Studies, University of Sussex
Paul Shaffer, Professor, Dept. of Global Justice & Development, Trent University, Canada
Pete Vechsuruck, Assistant Professor of Economics, University of Rhode Island, USA
R. Sudarshan, Professor & Dean, Jindal School of Government and Public Policy (JSGP), O.P. Jindal Global University, Sonipat, 131001, Haryana, India
Rajani Nagesh Tadimalla, Researcher and Author
Rasigan Maharajh, PhD. MASSAf. Chief Director: Institute for Economic Research on Innovation, Tshwane University of Technology, RSA
Ravi Bhandari, Professor of Economics at Institute for New Economic Thinking and Chevron Chair of Development at Saint Mary’s College in California
Raza Werner, Director, Austrian Foundation for Development Research (ÖFSE)
Reza Baqir, Former Pakistan Central Bank Governor
Ricardo Martner, Economist, ICRICT
Richard Kozul-Wright, SOAS University of London and former Director, Division of Globalization and Development Strategies, UNCTAD Geneva
Roos Saalbrink, Global Lead on Economic Justice and Public Services at ActionAid International and Senior Atlantic Fellow for Social and Economic Equity
Sara Jane Ahmed, Managing Director & V20 Finance Advisor, CVF-V20 Secretariat
Sattwick Dey Biswas, Independent Researcher, Volunteer & Coordinator of History of Economic Thought Working Group, INET’s Young Scholars Initiative
Saúl Escobar Toledo
Saul N. Keifman, Professor/Researcher, Instituto Interdisciplinario de Economía Política de Buenos Aires
Sayak Chakraborty, Student of Economics
Sebastian Ceria, President, Fundar
Serah Makka, Executive Director, Africa, The One Campaign
Sergio Cesaratto, full professor, Department of Economics and Statistics, University of Siena
Smitha Francis
Sonal Raghuvanshi
Stefano Zamagni, Professor, University of Bologna and Pontifical Academy of Social Sciences
Syed Saddam Ali, Research Scholar, Department of Economics, Vidyasagar University
Thomas Selemane, Wits School of Governance, Johannesburg, South Africa
Valpy Fitzgerald, Professor, University of Oxford
Vamsi Vakulabharanam, Professor of 104. Vicente Merrill Cifuentes
Wogayehu Abele, Researcher, South Agricultural Research Institute, Ethiopia.
Yavuz Yaşar, Professor of Economics, University of Denver