Nations must protect spending on the vulnerable, says IMF chief

The International Monetary Fund is urging countries to protect spending on health, education and vulnerable groups amid growing concern among its members about excessive levels of inequality, its managing director has said.

Announcing the change of approach in an interview with the Guardian, Christine Lagarde said it was now politically incorrect to argue against the impact of social spending on growth and stability.

The IMF, she said, had been through a process of introspection after being criticised in the past for imposing anti-poor spending cuts on governments facing financial crises.

Lagarde said the new stance was the result of demands from the IMF’s member countries and internal soul-searching on the part of her organisation…..more

The IMF should support the financing of universal social protection, health and education