Weakened Environmental Safeguards

Budget cuts represent a typical response to IMF policy mandates

*In Brazil, government spending on environmental programs was cut by two-thirds in order to meet the fiscal targets set by the IMF.(13)

*In Russia the budget for protected areas was cut by 40%.(14)

*In Indonesia, budget cuts have forced officials in Jakarta, one of the world’s most polluted cities, to suspend environmental programs.(15)

*In Nicaragua, the budget of the Ministry of the Environment and Natural Resources was cut by 36% in order to adhere to IMF budget targets.

Changes in Laws and Policies

Many countries have changed their laws and regulations to attract foreign investment. In the mining sector, for example, many countries under IMF policy reforms have relaxed regulations for investment and exploration. Some countries still try to assess the environmental impacts of mining, but it is yet to be seen whether concerns for environment will be overshadowed by economics in these cash strapped economies.

*Guyana changed its mining policies, giving large mining companies the majority stake in large operations.(16)

*Benin and Guinea both revised their mining codes to promote mining and increase exploration.

*The Central African Republic established new mining codes citing that mineral resources were “insufficiently exploited.”

*Mali established a new mining code in 1999 to encourage development, also including plans to consider environmental impact.

*Mauritania established a new mining code to increase development and will also formulate policies to assess the environmental impact.