IMF accused of impeding health sector progress

The groups said that the low-inflation targets set by the IMF lead to limits on overall national spending within the economies of poor countries which in turn reduces the pace of growth in these economies. It also exacerbates unemployment.

For instance, Kenya has more than 10,000 trained but unemployed nurses who cannot get public sector jobs because of the IMF policies.

In an earlier response to non-profit groups, IMF said the wage bill condition was being phased out and would henceforth be used only in countries with unstable macroeconomic conditions such as those emerging out of conflict.

According to the the non-profit groups, however, the IMF still maintains these conditions only not as directly as they used to.

The fund has also insisted that high wage bills have been a significant source of macroeconomic imbalances and that wage and employment conditions in other sectors would need to be reformed to allow for sustainable expansion in health and education.

Kenya’s health budget has grown from Sh15.2 billion in 2002 to Sh37 billion 2010.