Background

Debate over the IMF’s engagement with civil society organisations (CSOs) has gained renewed relevance as the institution scales up financial assistance in response to the COVID-19 pandemic. The virus has crippled the economies of low-income countries across the globe, driving many states to enter negotiations with the IMF for concessional lending arrangements and other forms of financial assistance. Understandably, CSOs in target countries want to feature prominently in negotiating the terms of any IMF lending agreement, lest the programs’ conditions impose still more socio-economic inequality in the name of macroeconomic recovery and loan repayment. In its advocacy against austerity and for the accountability of international financial institutions, Oxfam has commissioned this study to understand the meaningfulness and relevance of IMF engagement with CSOs in the countries it conducts conditional loan programs in.

Triangle’s Assignment

Triangle was commissioned by Oxfam International to conduct analytic research that examines the IMF’s past and current engagement with CSOs. The research explores the topic through six comparative case studies, drawn from the countries that have received IMF assistance since 2008, or continue to receive such assistance. The comparative case study analysis provides findings and recommendations based on common trends, while also accounting for different national contexts and political dynamics.

Objectives

The assignment had several key objectives:

• To assess past and current IMF engagement with CSOs, including labour unions, at the country level.
• To evaluate the effectiveness and impact of the IMF’s engagement with CSOs.
• To analyze the level of engagement fostered by the IMF with civil society, considering different national contexts and political economy dynamics.
• To identify limitations and opportunities for improving IMF-CSO engagement.
• To provide recommendations for enhancing the IMF’s engagement with CSOs to ensure transparency and inclusivity in policy-making.

Research Approach & Methodology

Triangle employed a comprehensive mixed-method approach to gather data for the assignment. The methodology included:

• Desk Review: Conducting a comprehensive review of existing work on IMF and civil society engagement and civic space.
• Key Informant Interviews: Engaging with Oxfam staff, allies, relevant IMF staff (communications, mission chiefs, resident representatives), and key CSO stakeholders in the countries included in the study.
• Data Analysis: Analyzing the modalities of IMF engagements, their frequency, and the actors involved.
• Impact Assessment: Evaluating the impact of CSO engagement on loan program designs, monitoring, and Article IV report outcomes, as well as the IMF’s reputation and credibility.