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The effects of IMF programs on poverty, income inequality and social expenditure in low income countries: an empirical analysis

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  • Graham Bird
  • Faryal Qayum
  • Dane Rowlands

Abstract

This paper examines the effect of IMF programs on poverty, income inequality and government expenditure on education and health. It distinguishes between non-concessional and concessional programs and examines the effect of contingent factors; program completion, IMF resources, the size of the initial economic problems and aid dependency. Our findings suggest that, in general, IMF programs have not significantly increased poverty and income inequality; in some instances they are associated with reduced poverty and income inequality. Moreover, we find little evidence that IMF programs lead to severe cuts in social expenditure.

Suggested Citation

  • Graham Bird & Faryal Qayum & Dane Rowlands, 2021. "The effects of IMF programs on poverty, income inequality and social expenditure in low income countries: an empirical analysis," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 24(2), pages 170-188, April.
  • Handle: RePEc:taf:jpolrf:v:24:y:2021:i:2:p:170-188
    DOI: 10.1080/17487870.2019.1689360
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    Cited by:

    1. Emrah Kocak & Hayriye Hilal Baglitas, 2022. "The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1947-1962, December.
    2. Ablam Estel Apeti & Kwamivi Gomado, 2023. "IMF conditionality and structural reforms: Evidence from developing countries," WIDER Working Paper Series wp-2023-97, World Institute for Development Economic Research (UNU-WIDER).

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