Hundreds gathered in Bangkok on Friday to protest against the International Monetary Fund’s (IMF) and World Bank’s approach to the economic challenges facing developing countries. The demonstration coincided with the IMF-World Bank Annual Meetings held in the Thai capital, where finance ministers, central bank governors, and other senior officials discussed the ongoing global inflation crisis, exacerbated by conflicts in the Middle East and Ukraine, as well as the lingering effects of the COVID-19 pandemic.
Among the protesters was Sombat Chuekrud, a coconut farmer who traveled over 200 kilometers to join the demonstration. He and others urged the IMF and World Bank to reconsider their fiscal policies, arguing that calls for austerity measures risk worsening poverty in already vulnerable populations. “Thai people are already poor. Please don’t make them any poorer,” Sombat said.
Protest organizers and rights groups criticized the international financial institutions for pushing governments in the Global South to reduce spending on essential services, including public health, education, and social protection, as a condition for managing debt burdens. Lidy Nacpil, one of the organizers, said many countries are compelled to cut vital social programs to meet debt obligations to wealthy nations and private creditors.
Oxfam Executive Director Amitabh Behar echoed these concerns, describing the situation as an “inequality emergency.” He warned that IMF recommendations for fiscal consolidation risked aggravating inflation-related price hikes and intensifying hunger, as essential services would face further cutbacks during a critical period of economic instability.
The IMF updated its global economic outlook this week, citing unexpected resilience amid widespread crises, but noted that gains are unevenly distributed. Oil-importing low-income countries without access to advanced technology sectors were highlighted as particularly vulnerable. In response, IMF deputy chief of research Petra Koeva Brooks acknowledged the difficulties faced by these countries but maintained that they must either reduce spending or raise revenues to address fiscal imbalances.
The Fund has called for more targeted subsidies for energy and food provisions introduced after conflicts involving Iran, though the United Nations Development Programme warned that completely ending such support could push 130 million people into poverty. Nacpil questioned how policymakers could fairly determine eligibility for subsidies, asking, “How poor do you have to be for them to think that you will need some support?”
Reza Baqir of Alvarez & Marsal’s Sovereign Advisory Services underscored the tough decisions faced by low-income countries, drawing on his experience as former governor of Pakistan’s central bank. He emphasized the need for stronger domestic governance to build fiscal buffers and reduce dependence on external aid, enabling more targeted support for citizens.
Christina Segal-Knowles from the Rockefeller Foundation noted that low-income nations face “two bad options”: accruing debt at high interest rates or implementing deep cuts that jeopardize development goals. She proposed a “growth and investment reset” involving increased concessional funding to provide sustainable support to these countries.
As night fell in Bangkok, protestors prepared to camp under a highway overpass, determined to be heard by policymakers. Activist Supaporn Mallaloy said the movement was about more than borrowing funds; it was about influencing the future direction of national development.