Dear John,

Over recent years, studies have exposed the impact of policies pushed by institutions such as the International Monetary Fund (IMF) and World Bank on people's health and wellbeing*. Our latest article looks at the struggles of people in Ethiopia as the country institutes economic reforms as a condition of an IMF loan.

In recent years, Ethiopians have been faced with a cost of living crisis as inflation has soared and the value of their currency, the Birr, has fallen. This, along with disruptions caused by the COVID-19 pandemic and conflict, both locally and globally, has put immense pressure on the economy and people's ability to make ends meet.

On Sunday 28th July 2024, Ethiopia secured a $10 billion loan from the IMF, contingent on significant economic reforms which are likely to severely impact people's livelihoods: 

• Devaluing the Birr.

• Stopping the national bank’s control of the exchange rate.

• Removing subsidies on several commodities, including fuel.

• Privatising state-owned facilities.

• Allowing foreign banks to operate in Ethiopia and encouraging foreign investment through policy.

The effects of these reforms are being felt already. As people in Ethiopia look ahead with some concern, our article explores both the specific challenges facing the country and the broader global power dynamics at play.

In solidarity,

Siaffa Bunduka,

Supporter Engagement Manager

*https://www.sciencedirect.com/science/article/pii/S0277953619304897#sec4