Open Letter to the International Monetary Fund Board of Directors on the Need for Significant Reform of the Rate of Charge and Surcharge Policies

“Dear International Monetary Fund Board of Directors,

This Friday October 11, 2024, the International Monetary Fund (IMF) is expected to announce reforms to its policy on charges and especially surcharges, which levies extra fees on countries whose debts have surpassed certain size and time thresholds. We the undersigned urge the IMF to meaningfully reform its policies, especially on surcharges.

Research shows that IMF surcharges are procyclical and regressive, extracting higher lending rates and fees from countries during financial crises when they should be investing in their own recovery. For years, researchers and advocates have documented how the current surcharge policy prevents low- and middle-income countries from regaining financial stability, including by piling on higher borrowing, and preventing access to international markets. Surcharges increase the total potential annual interest rate imposed by the IMF to almost 8 percent. Moreover, the arguments put forward in defense of the surcharges have shown to have little if any validity.

We are concerned by reports that the IMF is not considering significant reforms that would remedy the flaws inherent in its surcharge policy. We fear that the IMF is instead contemplating insufficient half-measures. Tinkering at the edges will not help ensure global stability. The IMF itself projects that the number of countries paying surcharges will keep increasing. Already, 675 million people live in low- and middle-income countries whose taxpayers are projected to pay the IMF roughly $2 billion just in surcharges every year for the next five years. Every one of those dollars is a dollar not spent on health, education and the clean energy transition. If the IMF Board maintains its current system of charging the taxpayers of already struggling, indebted countries extra surcharge fees, which cushion its general reserves, its members cannot expect that we will perceive the Fund as the steward of global financial stability that it was founded to be and confidence and trust in the Fund will diminish.

Sincerely,

Joseph Stiglitz, University Professor, Columbia University, Recipient of Nobel Memorial Prize in Economics, 2001

Kevin Gallagher, Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University

Jayati Ghosh, Professor of Economics at the University of Massachusetts Amherst, USA

Martin Guzman, Professor, Columbia University SIPA; former Minister of Economy of the Republic of Argentina

Axel Kicillof, Governor of the Province of Buenos Aires, Argentina

Mariana Mazzucato, Professor in the Economics and Innovation and Public Value, University College London

Thomas Piketty, Professor, Paris School of Economics

Haroon Akram-Lodhi, Professor of Economics, Global Justice and Development, Trent University, Peterborough, Canada

Aaron Schneider, Professor, University of Denver

Adebayo Adekunle Ademayowa, Associate Professor of Economics and Ag. Dean, College of Management and Social Sciences Education, Lagos State University of Education, Oto/Ijanikin, Lagos State, Nigeria

Agostina Costantino, CONICET, Argentina

Alan B. Cibils, Universidad Nacional de General Sarminento

Aldo Caliari, Senior Director of Policy and Strategy, Jubilee USA Network

Alejandro Vanoli Cátedra, Grupo Fénix, University of Buenos Aires Argentina

Alicia Puyana Mutis, Economics Professor at FLACSO-México

Alice Sodano, Paris School of Economics

Anamitra Roychowdhury, Jawaharlal Nehru University, New Delhi, India

Andre Chiriboga, Science Po Paris

Andres Arauz, Academic and Policy Researcher, Centre for Economic and Policy Research, Washington DC, USA

Andrew Fischer, Professor of Inequality, Social Protection and Development, Institute of Social Studies, Erasmus University Rotterdam

Ann Pettifor, Director, Policy Research in Economics

Arthur MacEwan, Professor Emeritus of Economics, University of Massachusetts Boston

Avinash Persaud, Special Advisor to the President of IDB

Barry Herman, Social Justice in Global Development

Basil Oberholzer, Austria

Brett House, Columbia School of Business

Byasdeb Dasgupta, Kolkata India

Carlo D’Ippoliti, Sapienza University of Rome

Carlos Lopes, Professor, Nelson Mandela School of Public Governance, University of Cape Town, and former Executive Secretary, UN Economic Commission for Africa

Carolina Alves, Associate Professor of Economics at the UCL Institute for Innovation and Public Purpose

Carmine Gorga, President, The Somist Institute

Cecilia Rikap, Associate Professor of Economics & Head of Research, University of College London, Institute for Innovation and Public Policy

Chang Kyung-Sup, PhD, SNU Distinguished Professor of Sociology, Seoul National University

Christina Laskaridis, Professor, The Open University UK; University of Oxford

CP Chandrasekhar, Research Director, International Development Economics Associates and Fellow, Political Economy Research Institute, University of Massachusetts Amherst

Damon Silvers, Visiting Professor of Practice, Institute for Innovation and Public Purpose, University of College London and former Policy Director, AFL-CIO

David Barkin, Distinguished University Professor, Universidad Autónoma Metropolitana, Mexico

Daouda Sembene, AfriCatalyst CEO and former IMF Executive Director

Débora M Nunes, Assistant Professor, Pasquale Monmouth University

Devika Dutt, King’s College London

Dharam Ghai, Director, United Nations Research Institute for Social Development (Past)

Dilli Raj Khanal, PhD, Founder Chairman , Institute for Policy Research and Development (IPRAD)

Eduardo Strachman, Associate Professor of Economics, São Paulo State University, Brazil

Emilia Millón, Professor of Macroeconomic and Economics and Gender at Tucumán University, fellow at ISES-CONICET and part of Espacio para la Equidad Fiscal (Space for Fiscal Equity) in Argentina

Emmanuel Tweneboah Senzu, Professor of Law and Economics, Blackstone Africa-Asia Jurists Center, Sierra Leone, West Africa. Every Nation College Building Sima II

Eric LeCompte, Executive Director, Jubilee USA Network

Eva Joly, Lawyer, Paris Bar, ICRICT

Fadhel Kaboub, President, Global Institute for Sustainable Prosperity

Fayq Al Akayleh, Associate Professor of International Economics.

Firat Demir, L.J. Semrod Presidential Professor of Economics, Co-Director, Center for Peace and Development, Senior Researcher & Co-Founder, Security in Context

Francis Cripps, Alphametrics Co., Ltd.

Francisco Cantamutto, IIESS UNS-CONICET, Depto. Economía UNS

G.N. Nagaraj, Retired Professor, University of Karnataka

Visakh Varma, Visiting Professor, M.E.S School of Architecture, Kuttippuram, Kerala State, India

Gaston Nievas Offidani, Paris School of Economics

Gerald Epstein, Professor of Economics, University of Massachusetts Amherst, USA

Gerald Friedman, Professor of Economics, University of Massachusetts Amherst, USA

Gertrude Dzifa Torvikey, Institute of Statistical, Social and Economic Research (ISSER), University of Ghana

Giovanni Dosi, Professor, Sant-anna School of Advanced Studies, PISA

Gilad Isaacs, Executive Director, Institute for Economic Justice.

Giuseppe Tattara, Professor of Economics (emeritus), University of Venice, Cà Foscari, Italy

Guillaume Long, Senior Research Fellow, Center for Economic and Policy Research

Gustavo Indart, Professor Emeritus of Economics, University of Toronto

Gustavo Beliz, Academician, The Pontifical Academy of Social Sciences

Ha-Joon Chang, Research Professor of Economics, SOAS, University of London

Hung Tran, Nonresident Senior Fellow, Atlantic Council

Ignacio Silva Neira, PhD Student and Research Associate, Berlin School of Economics and Law & Executive Director of the Observatory of Economic Policies (OPES)

Ilene Grabel, Distinguished University Professor, Josef Korbel School of Int’l Studies, University of Denver, USA

Ilias Alami, Assistant Professor in Political Economy, Cambridge University

Irene Ovonji-Odida, ICRICT

Irene van Staveren, Professor of Pluralist Development Economics, International Institute of Social Studies of Erasmus University Rotterdam

Isabel Estevez, Oxford University

Isabel Ortiz, Director Global Social Justice, IPD; former Director at United Nations’ ILO and UNICEF

Isabella M. Weber, Associate Professor of Economics, University of Massachusetts Amherst, USA

Ishac Diwan, Professor American University of Beirut and Paris School of Economics

Iyabo Masha, Director and Head of Secretariat, The Intergovernmental Group of Twenty-Four

James K Boyce, Emeritus Professor, University of Massachusetts Amherst, USA

James K. Galbraith, The University of Texas at Austin

James Heintz, Professor of Economics, University of Massachusetts Amherst, USA

John Miller, Professor of Economics, Wheaton College, Norton, MA 02766

Jorge Forero, Latin American Faculty of Social Sciences (Ecuador)

Jorge Garcia-Arias, PhD, Full Professor, International Political Economy & Global Development Studies, University of Leon (Spain)

Jorge Remes Lenicov, Former Minister of Economy, Republic of Argentina

Jose Antonio Ocampo, Columbia University

José Gabriel Palma, University of Cambridge and University of Santiago de Chile

Juan Pablo Bohoslavsky, Researcher, National Scientific and Technical Research Council of Argentina (CONICET)

Jude Onemolease, Market Systems Leader, Durandel Market System Development (DuraLab), Durandel Ltd, Nigeria

Jwala Rambarran, Senior Policy Advisor, Caribbean Policy Development Centre

Kate Donald, Head of Washington D.C. Office, Oxfam International

K.N.Harilal, Chairman, State Finance Commission, Kerala, India

Kathleen McAfee, Professor Emerita, International Relations, San Francisco State University

Kim Jacinto-Henares, Commissioner, ICRICT

Kofi Takyi Asante, Institute of Statistical, Social and Economic Research (ISSER), University of Ghana

Kunibert Raffer, Associate Professor, University of Vienna

Lance Patrick Vicher, Research Assistant, Institute for Nationalist Studies

Laura Carvalho, Open Society Foundations and University of Sao Paulo

Laurie Joshua, Consultant Economist, Labour and Social Protection (World Bank, EU, UN)

Leandro M. Bona, Researcher and Assistant (CONICET, UNLP, FLACSO-Argentina)

Lee Badgett, Professor Emeritrix of Economics, University of Massachusetts Amherst, USA

Leonardo E. Stanley, Associated Researcher at CEDES – Argentina

Leonce Ndikumana, Distinguished Professor of Economics, University of Massachusetts Amherst

Linda J. Bilmes, Daniel Patrick Moynihan Senior Lecturer, Harvard Kennedy School

Abul Kalam Azad, Doctoral Candidate, Natural Resources Institute, University of Manitoba, Canada

Machiko Nissanke, Professor (Emeritus), SOAS, University of London

Magdalena Sepulveda Carmona, Executive Director; Global Initiative for Economic, Social, and Cultural Rights (GI-ESCR)

Maia Colodenco, Director of Global Initiatives, Suramericana Vision

Malik Owusu Antwi (Rev), Executive Director, Blessed Pan-African Youth For Rural Development

Manuel F. Montes, Senior Advisor, Society for International Development

Marcelo Sanchez Sorondo, Bishop of Vescovio, Former Professor of History of Philosophy at Lumsa University (Rome) and Chancellor of the Pontifical Academy of Sciences and Social Sciences

Marilou Uy, Non-Resident Senior Fellow, Boston University Global Development Policy Center

Marina Zucker Marques, Senior Academic Researcher for the Global Economic Governance Initiative, Boston University

Mark Weisbrot, Co-Director, Center for Economic Policy Research, Washington DC

Maria Victoria Murillo, Professor, Columbia University

Martin Lousteau, Senator and Former Minister of Economy of the Republic of Argentina

Matías Vernengo, Professor of Economics, Bucknell University, New Palgrave Dictionary of Economics, Editor in Chief

Matti Kohonen, Director, Financial Transparency Coalition

Michael Ash, Professor of Economics, University of Massachusetts Amherst, USA

Michael Galant, Senior Research and Outreach Associate, Center for Economic and Policy Research

Michael Pettis, Carnegie Endowment

Mona Ali, State University of New York

Muneer Babu M., Assistant Professor of Economics, University of Calicut

Mwangi wa Githinji, Professor of Economics, University of Massachusetts Amherst, USA

Narender Thakur, University of Delhi

Ndidi Okonkwo Nwuneli, President & CEO, The One Campaign

Neva Goodwin, Boston University and Tufts University

Odd Hanssen, Tax and Health Specialist, UNDP-Sustainable Financing Hub

Pasquale De Muro, Professor, Dept. of Economics, Roma Tre University (Italy)

Patricia Fahy, Assemblymember, New York State Assembly

Patricia Miranda, LATINIDAD

Paul Robert Gilbert, Senior Lecturer in International Development, School of Global Studies, University of Sussex

Paul Shaffer, Professor, Dept. of Global Justice & Development, Trent University, Canada

Pete Vechsuruck, Assistant Professor of Economics, University of Rhode Island, USA

Sudarshan, Professor & Dean, Jindal School of Government and Public Policy (JSGP), O.P. Jindal Global University, Sonipat, 131001, Haryana, India

Rajani Nagesh Tadimalla, Researcher and Author

Rasigan Maharajh, PhD. MASSAf. Chief Director: Institute for Economic Research on Innovation, Tshwane University of Technology, RSA

Ravi Bhandari, Professor of Economics at Institute for New Economic Thinking and Chevron Chair of Development at Saint Mary’s College in California

Raza Werner, Director, Austrian Foundation for Development Research (ÖFSE)

Reza Baqir, Former Pakistan Central Bank Governor

Ricardo Martner, Economist, ICRICT

Richard Kozul-Wright, SOAS University of London and former Director, Division of Globalization and Development Strategies, UNCTAD Geneva

Roos Saalbrink, Global Lead on Economic Justice and Public Services at ActionAid International and Senior Atlantic Fellow for Social and Economic Equity

Sara Jane Ahmed, Managing Director & V20 Finance Advisor, CVF-V20 Secretariat

Sattwick Dey Biswas, Independent Researcher, Volunteer & Coordinator of History of Economic Thought Working Group, INET’s Young Scholars Initiative

Saúl Escobar Toledo

Saul N. Keifman, Professor/Researcher, Instituto Interdisciplinario de Economía Política de Buenos Aires

Sayak Chakraborty, Student of Economics

Sebastian Ceria, President, Fundar

Serah Makka, Executive Director, Africa, The One Campaign

Sergio Cesaratto, full professor, Department of Economics and Statistics, University of Siena

Smitha Francis

Sonal Raghuvanshi

Stefano Zamagni, Professor, University of Bologna and Pontifical Academy of Social Sciences

Syed Saddam Ali, Research Scholar, Department of Economics, Vidyasagar University.

Thomas Selemane, Wits School of Governance, Johannesburg, South Africa

Valpy Fitzgerald, Professor, University of Oxford

Vamsi Vakulabharanam, Professor of 104. Vicente Merrill Cifuentes

Wogayehu Abele, Researcher, South Agricultural Research Institute, Ethiopia.

Yavuz Yaşar, Profesor of Economics, University of Denver

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