Debt, Deceit, and Dominance
A Critical Analysis of IFI Operations in the MENA Region
by Shady Hassan
1. Climate Injustice: Shifting the Burden
Under the guise of "climate mitigation," IMF conditions force low-polluting MENA countries to bear the financial burden of a crisis driven by the West. This violates the core principle of "Common But Differentiated Responsibilities" (CBDR), which acknowledges that historical polluters should lead mitigation efforts.
In Egypt, IMF-mandated fuel pricing mechanisms effectively subsidize luxury car owners while increasing transport costs for the poor majority—a policy that is both socially unjust and environmentally questionable.
2. The Surcharge Penalty: Illegitimate Debt
IMF surcharges are not fees; they are penalties imposed on countries in crisis, creating illegitimate debt. These payments divert billions from essential public services, punishing the poor for being poor.
Egyptian Pounds Paid in Surcharges (2012-2024)
of Egypt's Food Subsidies
of Egypt's Energy Subsidy
Even after reforms, Egypt and Jordan will continue to pay these charges. For Egypt, projected surcharges from Nov 2024 onward (4.5 billion LE) will exceed the combined subsidies for electricity and farmers.
3. Engine of Inequality: The Egypt Case
In Egypt, the IMF has engineered a financial architecture that massively increases inequality. By mandating high interest rates, it shields the assets of the rich from inflation while taxpayers and productive sectors bear the full burden of austerity, violating fundamental fairness norms.
50%
of Egypt's nominal growth over the last five years was captured by domestic public debt owners alone.
This system institutionalizes and rewards rent-seeking over productive activity, creating a situation where the return on rentier capital far exceeds economic growth.
4. Flawed Methodology: The Lebanon Case
The IMF's data methodologies are useless for countries experiencing currency fluctuations. In Lebanon, this resulted in a wildly misleading external debt-to-GDP ratio, rendering their database irrelevant for researchers and the public in nations facing similar crises.
Conclusion: A Tool of Imperialist Agendas
The IMF and World Bank leverage debt and crises to expand their influence, using moments of fragility to shape public policy for generations. Their policies reflect the interests of the Western countries that control them, aligning with imperialist agendas to restructure economies, hinder growth, and maintain dominance over global resources.
They execute a coordinated strategy promoting failed trickle-down economics. The result is not shared prosperity, but a re-engineering of the economy that benefits a small elite while maintaining an extractivist agenda.