UK Business

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How governments use IMF bailouts to hurt political opponents – new research

Written by M. Rodwan Abouharb, Associate Professor in International Relations, UCL

Sri Lanka received a bailout from the International Monetary Fund (IMF) in March amid soaring inflation, debt and a sovereign default.

In exchange for US$3 billion (£2.4 billion), the government committed to spending cuts and tax and financial sector reforms. These have prevented Sri Lankan wages from recovering after they fell by almost half...

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