Corruption is Fueling a Global Debt Crisis.

Washington, D.C. – Investors, World Bank and IMF leadership and other stakeholders convene this

week in Washington, D.C. for the Annual Meetings of the world’s two largest multilateral international

financial institutions. The meetings are being held at a time of unprecedented global debt that is

undermining progress toward sustainable economies, especially in low- and moderate-income (“LMI”)

countries in the global south.

“To understand the real-world impact of misaligned IMF policies and government corruption, just

look to the recent experience of Kenya,” said Diana Gichengo, Executive Director of The

Institute for Social Accountability in Kenya. “IMF Loan conditions require crippling austerity

measures and extractive tax hikes while largely ignoring fiscal opacity and a lack of accountability that

fuels wealth draining corruption.” Gichengo added that, “Despite both the Kenyan Ethics and Anti-

Corruption Commission and the Office of the Auditor General confirming soaring levels of fraud,

waste, and abuse at national and county government levels, the lenders pay lip service to these issues

when developing new loan programs.”