IMF warns of Sri Lanka style protests in other countries
The International Monetary Fund (IMF) has warned that Sri Lanka style protests could break out in other countries if there is no proper Government support.
Governments need to subsidise the cost of food and energy for the poorest members of society, the head of the International Monetary Fund (IMF) Kristalina Georgieva told the BBC.
People around the world are struggling with the rising cost of living.
Kristalina Georgieva said support needs to be provided “in a very targeted manner, preferably by providing subsidies directly to people”.
Ms Georgieva is concerned that without the correct government support the protests seen in Sri Lanka could be repeated in other countries.
Sri Lanka’s economic crisis, exacerbated by rising prices, has led to deadly riots, a new prime minister and a first ever default on its debts.
The IMF boss said such similar unrest before the pandemic, from France to Chile, was caused by “a sense of inequality growing” and decisions being made without the support of the people.
“If we are to learn any lessons from 2019 if is to be much more humble about policy decisions, and engage in multiple ways with people, because policies must be for people, not the paper we write them on,” she said.
The IMF’s role is to work with governments to stabilise the global economy and enhance prosperity.
However, that’s proving challenging because food prices have hit record highs this year, whilst oil and gas prices have also risen sharply. (Colombo Gazette)
