Africa

The body of revered Kenyan opposition leader Raila Odinga arrived in Nairobi on Thursday from India where he died of a suspected heart attack. A large crowd gathered at Jomo Kenyatta International Airport to greet the coffin, AFP reporters said.

Everyone is talking about stablecoins mdash;fast, borderless, revolutionary. They say it rsquo;s the future of money. Sounds incredible, right? Wrong. Let me tell you the truth: Africa cannot afford them.

France's highest administrative court has rejected an appeal by far-right leader Marine Le Pen, dealing a major setback to her efforts to remain eligible for the 2027 presidential race. The Council of State announced its decision on Wednesday, confirming the immediate enforcement of Le Pen's ineligibility sentence following her conviction earlie .

Placards and slogans against France that surfaced in demonstrations against impeached President Andry Rajoelina this week exposed deep resentment against the former colonial power. France out , Rajoelina and Macron out , said banners after French media reported that the president had fled on a French military plane as an army unit threw its we .

Former president Joseph Kabila rallied opponents of the Democratic Republic of Congo 39;s current government in Kenya 39;s capital on Wednesday, announcing a new movement to save his crisis-hit country.

The UN General Assembly endorses New York Declaration on a two-State solution between Israel and Palestine. 12 September 2025. Credit: UN Photo/Loey Felipe

By Alon Ben-Meir
NEW YORK, Oct 16 2025 (IPS)

The ceasefire agreement and the release of Israeli hostages and Palestinian prisoners are only the first steps on the long and treacherous road that could end the calamitous, decades-long Israeli-Palestinian conflict. In my recent article, “A Rare Alignment:The World Stands Ready, Are the Palestinians?”

I tackled what the Palestinians must do to realize their national aspirations. In this article, I address what the Israelis must do not only to end their conflict with the Palestinians, but also to salvage Israel’s moral standing, which lies in ruin in Gaza.

The Israeli-Palestinian conflict has reached a new breaking point, more precipitous now than any time before. Although Israelis have experienced unfathomable trauma as a result of Hamas’ horrific attack, now is the time for all Israelis to carefully examine the circumstances that have brought them to this fateful crossroads.

Decades of violent conflict and the persistent denial of each other’s rights culminated in Hamas’ savagery, followed by the longest and most devastating war, which has reframed the nature of the conflict. It made it clearer than ever before that those who wrote the obituary for a two-state solution must now rewrite their script. As much as co-existence is inescapable, so is the inevitable rise of a Palestinian state.

Choosing the right path would require courage and a new vision. The Israelis must first disabuse themselves of several beliefs embedded in their psyche and push for a just solution to the conflict with the Palestinians, which is central to gradually restoring Israel’s shattered moral standing, which only the Israelis themselves can reclaim.

Existential Threat
The Israelis have been indoctrinated to believe that a Palestinian state would pose an existential threat and must be prevented at all costs, which has been falsely promulgated for decades by egocentric, nationalist and corrupt politicians like Netanyahu. At this juncture, the Israelis need to accept the irrevocable reality of Palestinian existence and take action to mitigate their fear rather than perpetuate enmity.

Israel was created as a sanctuary for any Jew who wishes to live in peace and security. This millennium-old dream however, cannot be realized, as time has shown, as long as the Palestinians are denied a state of their own.

The Israelis need to overcome their anxieties and misguided beliefs by finding meaning and self-affirmation, which does not hinge on denying the Palestinians their own state. They should step away from the deeply rooted, misguided fear that a Palestinian state indeed poses an existential threat, because without it, Israel renders itself permanently insecure, as time has shown.

Hatred Toward the Palestinians
The Israelis’ hatred of the Palestinians is rooted in a century-old conflict, which has only deepened due to the continuing acts of violence and the prevalence of mutually acrimonious narratives. This is further compounded by the Israelis’ belief that the Palestinians refuse to accept Israel’s right to exist. Instead of focusing on practical measures of reconciliation necessitated by the inescapable coexistence, they clung to hatred, which subconsciously justifies their continuing resistance to Palestinian statehood.

A well-known proverb notes that “Hatred is like drinking poison and expecting the other person to die.” Indeed, hatred is self-destructive, and letting go of it is essential for peaceful coexistence. The Israelis must live in the present to free themselves from the shackles of past prejudices against the Palestinians and reach out rather than shun them.

Such an approach may surprise many Israelis, who will find that generally the Palestinians are a willing partner eager to engage, albeit only if they believe they stand a good chance of realizing their national aspirations.

Refusing the Reality of Coexistence
The Israelis need to come to terms with the fact that accepting what cannot be changed and embracing it with understanding and even compassion would ultimately serve their own interests. In essence, Israelis must use their collective power to create the conditions that produce mutual political, economic, and security gains, which is the only way to coexist peacefully. Israelis must ask what the alternative to peaceful coexistence is.

Has anyone come up with a viable and mutually acceptable alternative whereby both can live in peace, short of a two-state solution?

The irony is that while Netanyahu spent decades trying to prevent the establishment of a Palestinian state, his devastating onslaught on the Palestinians has only produced precisely the opposite. It has rallied the international community to support an independent Palestinian state like never before.

Israel can annex all the West Bank and Gaza, assuming that it could live with international isolation, sanctions, expulsion from various international organizations, etc., but where will the Palestinians go?

For how long can seven million Israeli Jews suppress seven million Palestinians living in their midst and around them? How many Palestinians can they kill, displace, or starve to death? What choice would the Palestinians be left with other than armed struggle?

Since coexistence is inescapable, under what kind of an umbrella do the Israelis want to live? Hamas’ savagery and Israel’s devastating retaliation only attest to the consequences of decades-long mutual systematic dehumanization.

Unless the Israelis accept coexistence as an unmitigated reality, they will have to raise generations of warriors trained to kill Palestinians, destroy their properties, and live by the sword for as far as the eye can see.

The Catastrophic Loss of Israel’s Moral Standing
There are no words to describe the lasting damage that the Netanyahu government has inflicted on Israel as a country and the Israeli people. The whole world was astounded to see Jews, of all people, committing crimes against humanity in broad daylight beyond the capacity of any human being with a conscience to grasp.

Yes, the world applies a double standard when it comes to the Jews, and for good reason. The Jews have suffered for millennia from persecution, discrimination, and expulsion, culminating with the Holocaust, and are expected, because of their tragic experience, to uphold the sanctity of life.

And while the Jews have lived by and spread the values of caring, compassion, empathy, and altruism—values that have shielded them throughout their dispersion—the barbaric Netanyahu government has betrayed these tenets of Judaism. It has left Israel, and by tragic extension, Jews round the world, with no moral ground to stand on while precipitating the exponential rise of antisemitism.

It is hard to imagine how any Israeli government would desert these values and perpetrate this inconceivable cruelty and vengeance upon the Palestinians. The killing of tens of thousands of women, children, and the elderly, the bombing of hospitals and schools, and the deliberate starvation of a whole people as a weapon of war, sent shock waves throughout the world, bewildering friends and foes.

The countries that admired Israel for its incredible achievements in all walks of life are now looking at it as a pariah state that has lost its moral compass and its way.

My Plea to the Israelis—Facing a Moral Reckoning
No one can make light of the trauma and the horrendous suffering so many of you have and continue to endure because of Hamas’ butchery and heartless imprisonment of the hostages. But your government’s retaliatory war, which quickly became a war of revenge and retribution that killed tens of thousands of innocent civilians, did not do justice to your sacrifices by committing horrific war crimes in your name.

The war in Gaza and its consequences demand that Israel face a moral reckoning. You need to confront your government’s actions that plundered the depths of human immorality. Your moral obligation is to rise against Netanyahu’s government.

Remember, the Palestinians will recover from the catastrophe they have endured, rebuild their lives, and coalesce around a renewed effort, with the mounting support of the international community, to realize their aspiration for statehood.

Israel, however, has sustained a far greater catastrophe by forsaking Jewish values. It will take a generation (or more) before your country can regain a measure of moral standing, and that is only if it ends the conflict with the Palestinians in a fair and just way based on a two-state solution.

Now it’s time for accountability. Following the release of the hostages, you now need to embark on bringing an end to the Israeli-Palestinian conflict. Pour into the streets by the hundreds of thousands and demand the immediate resignation of Netanyahu and force him to face a commission of inquiry about his conduct before and after Hamas’ attack.

What you need to pursue now is building on the ceasefire and demanding that a newly-formed government move step-by-step toward implementing the Trump peace plan, which must culminate in establishing a Palestinian state.

This will not be a gift to the Palestinians. Rather, this is what you must do to transform the calamitous war in Gaza and the horrific pain, suffering, and losses you have sustained into a breakthrough on the road toward the long-awaited and desperately needed peaceful Israeli-Palestinian coexistence.

Dr. Alon Ben-Meir is a retired professor of international relations, most recently at the Center for Global Affairs at NYU. He taught courses on international negotiation and Middle Eastern studies.

IPS UN Bureau

 

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The destruction and hunger that Sudan's war has brought leaves parents with some impossible choices.

President Ruto leads the tributes to Kenya's former prime minister and long-time opposition leader.

Raila Odinga was one of Kenya's most influential political figures despite five unsuccessful presidential bids.

Evidence of the intentional targeting of civilians in el-Fasher amounts to war crimes, researchers say.

Before the last weekend, most people in Madagascar had no clue who Col Michael Randrianirina was.

On 10 October 2025, thousands of Palestinian families moved along the coastal road back to northern Gaza, amid the extreme devastation of infrastructure. Credit: UNICEF/Mohammed Nateel

By Oritro Karim
UNITED NATIONS, Oct 15 2025 (IPS)

After two years of conflict with Israel, Hamas has released the remaining 20 living hostages, while Israel has freed 250 Palestinian prisoners and over 1,700 detainees who have since returned to Gaza. Following a ceasefire agreement that took effect on October 10, Israeli forces are set to withdraw from designated areas within the Gaza Strip as humanitarian organizations mobilize to assist Palestinians in urgent need.

For the past two years, Gaza has endured relentless bombardment, while aid deliveries have been largely obstructed throughout the course of the war. Over the past three days, the United Nations (UN) and its partners have been operating on the ground to provide lifesaving assistance to displaced civilians—many of whom are finally returning home and receiving access to basic services for the first time in months.

“After so much horror and suffering, there is finally relief at last,” said Olga Cherevko, the Spokesperson in Gaza for the Office for the Coordination of Humanitarian Affairs (OCHA). “Since the ceasefire took effect, the UN and our humanitarian partners have moved swiftly to scale up the delivery of humanitarian assistance across Gaza. The bombs have stopped falling and with that silence came an opportunity and the responsibility to act. The ceasefire has allowed those who are suffering during the two years of war, Palestinian and Israeli families, a breath of fresh air and a light of hope after many dark months.”

On October 13, OCHA confirmed that Israeli authorities had approved the delivery of more than 190,000 tonnes of humanitarian aid—roughly 20,000 tonnes above the previous agreement—including food, medicine, and shelter materials. According to Cherevko, 817 aid trucks have successfully entered Gaza without obstruction, offering a moment of relief for Palestinian families devastated by the conflict.

UNICEF trucks bring life-saving supplies into Gaza for children and their families. Credit: UNICEF/Mohammed Nateel

For the first time since March, cooking gas has been delivered to households in Gaza, while many residents have also gained access to frozen meat, fresh fruits and vegetables, and flour—essentials that had been out of reach for months. “All these items, we’ve been needing for so long,” Cherevko told reporters on Tuesday. “This is going to make a massive difference in people’s lives because we’ve been seeing families and kids collecting garbage to cook with. This will be a huge breakthrough.”

As a result of improved security conditions within the enclave, humanitarian agencies have gained greater mobility, allowing them to reach several previously inaccessible areas—including the north, where access had been most restricted and needs are most severe. OCHA has fully mobilized to deliver aid across all regions of Gaza as part of its 60-day scale-up plan for the ceasefire, which has so far proven effective.

“We’re offloading and collecting critical supplies and reaching areas we haven’t been able to access for months,” said Cherevko. “With the commercial sector reinforcing our response and bilateral assistance alongside us, we’re working to restore access to clean water and ensure people receive bread and hot meals.”

The UN and its partners have been working to resupply hospitals and field clinics that have been left without fuel or medical supplies for months, many of which were left only partially operational during the war. According to the World Health Organization (WHO), within 24 hours of the ceasefire taking effect, an emergency medical team was deployed to Al-Ahli Hospital.

Additionally, eight aid trucks carrying critical medical supplies, including insulin, cancer medicines, incubators, ventilators, patient monitors, and solar panels for desalination units, have reached the European Gaza and Nasser hospitals. Additional deployments are planned for Gaza City as displaced civilians begin returning to their areas of origin.

“Improving access to health facilities and expanding our operational missions are vital first steps toward delivering urgent health assistance to Palestinians throughout Gaza,” said Tedros Adhanom Ghebreyesus, Director-General of WHO. “Gaza’s health system must be rehabilitated and rebuilt. This crisis gives us the opportunity to rebuild it better: stronger, fairer and centered on people’s needs.”

Rubble and unexploded ordnance pose a significant threat to Palestinians returning home and remain one of OCHA’s top priorities during its sixty-day scale-up plan. Specialized OCHA teams are currently conducting assessments along key roads and crossings, making sure explosive ordnance is clearly marked and that communities know to stay away. The full extent of unexploded ordnance across the enclave has yet to be determined.

Despite marked improvements over the past several days, the scale of needs remains immense and additional funding is urgently required to support lifesaving services and ensure a sustained path for recovery. In addition to unexploded ordnance, displacement, destroyed infrastructure, lawlessness, damaged roads, and the collapse of basic services stand as significant challenges for humanitarian organizations.

“The ceasefire has ended the fighting, but it has not ended the crisis,” noted Cherevko. “Scaling up responses is not just about logistics and more trucks. It is about restoring humanity and dignity to a shattered population. We’re working around the clock with all parties to ensure predictable safe and sustained access.”

On October 14, the United Nations Development Programme (UNDP) announced that an estimated USD 20 billion will be required over the next three years to initiate Gaza’s reconstruction efforts—part of a broader recovery plan that could span decades and ultimately cost more than USD 70 billion. UNDP Representative Jaco Cillers told reporters in Geneva that while there are “good indicators” of support from potential donors in Europe, the Middle East, and the United States, no commitments have yet been confirmed.

Numerous humanitarian experts have affirmed that lasting peace is the only viable solution to the crisis, warning that conditions in Gaza are extremely fragile and could deteriorate further—especially with the onset of the winter season. “Let me be clear, humanitarian aid alone will not be a substitute for peace,” said Cherevko. “The ceasefire must hold. It must become the basis for broader political efforts that bring the end of cycles of violence and despair.

“The ceasefire has opened the door to a future in which children can go to schools safely, hospitals are places of healing and not suffering, and aid convoys are ultimately replaced by commerce and opportunity.”

IPS UN Bureau Report

 

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Mourners gather in Nairobi following the death of former Kenyan Prime Minister Raila Odinga.

The forced deportations of immigrants without due process, violent crackdowns against protesters in Los Angeles, ICE raids, and the deployment of military forces in Washington, D.C. are chilling reminders of the authoritarian playbook. For those of us who have lived through repression, these are unmistakable warning signs. Credit: Shutterstock

By Carine Kaneza Nantulya
WASHINGTON DC, Oct 15 2025 (IPS)

I moved to the United States in 2012 with great reluctance. I wasn’t sure why I should uproot myself to a country thousands of miles away from my hometown. The move reminded me of a childhood I hadn’t fully embraced—growing up in faraway countries like Russia and China, making constant adjustments, encountering racism, forging and losing friendships along the way. I had promised myself I would not impose the same cycle on my children.

This is the moment for the continent to claim leadership, to strengthen multilateralism, and to shape a global order rooted not in interventionism, self-centeredness but in Ubuntu -- a vision of shared humanity, community, and interdependence

But the U.S. turned out to be different. It wasn’t China, and it wasn’t Russia. It was, and still is, a mosaic of cultures, languages, and nationalities unlike anywhere else. Most important, it was a country rooted in the fierce belief that people are free to speak, dissent, and live as they choose.

That bedrock principle, however, is eroding. The US is changing in ways eerily reminiscent of my home country, Burundi. In 2015, when President Pierre Nkurunziza defied the constitution to seek a third term, peaceful protesters were met with bullets, political opponents were silenced, and journalists fled. Many of those journalists found refuge in the US—at Voice of America, for instance—only to lose their livelihoods recently when the government shuttered most of VOA’s Africa department.

The dismantling of USAID has left social workers and health experts reeling, their efforts to uplift millions crushed overnight. Yes, the US has long had a complicated role abroad. I grew up hearing about its support for abusive leaders like Mobutu in what was then Zaire and its meddling in countries’ internal affairs in the name of fighting communism.

But those contradictions always existed alongside a powerful counterforce: freedom in journalism and academia, and activism that relentlessly exposed America’s own wrongs. Writers like Alfred McCoy and critics like Noam Chomsky built careers by holding the U.S. government accountable—something unthinkable in today’s Burundi, Moscow or Beijing.

That commitment to truth and liberty was precisely why, when Burundian security forces fired live bullets into protesters, students instinctively ran to the US embassy—not the Russian or Chinese one. For decades, US soft power was rooted in the promise of human rights and democracy.

Carine Kaneza Nantulya, deputy Africa director at Human Rights Watch

Today, that promise is faltering. The forced deportations of immigrants without due process, violent crackdowns against protesters in Los Angeles, ICE raids, and the deployment of military forces in Washington, D.C. are chilling reminders of the authoritarian playbook.

For those of us who have lived through repression, these are unmistakable warning signs. Dictatorships do not emerge overnight; they take root when fear replaces voice, when courts surrender independence, when social movements fracture. Above all, they thrive on apathy and isolation.

Defending human rights and democratic principles is never easy—as my organization, Human Rights Watch, knows too well. But it is the only way to safeguard the dignity of the vulnerable and the cohesion of our shared humanity. So if Washington retreats from that responsibility, who will step up?

The answer lies, in part, with African governments. This is the moment for the continent to claim leadership, to strengthen multilateralism, and to shape a global order rooted not in interventionism, self-centeredness but in Ubuntu — a vision of shared humanity, community, and interdependence. Many Africans applauded when South Africa took Israel to the International Court of Justice saying Israel violated the Genocide Convention in Gaza. That same courage is needed in Sudan, eastern Democratic Republic of Congo, and the Sahel, where civilians face atrocities while the U.S. limits itself to mineral deals or silence.

“African solutions to African problems” cannot remain a slogan. It needs to become a policy agenda with concrete commitments. That means building stronger regional institutions with the authority and resources to act, supporting accountability mechanisms like the African Court and the International Criminal Court, and investing in early warning systems that can prevent crises before they spiral into atrocities.

It means protecting independent media and civil society so that governments are held accountable at home as well as abroad. And it means engaging at the United Nations and other multilateral forums not just as individual states but as coordinated blocks capable of shaping outcomes.

The US retreat is not simply a void; it is a test. If African leaders want to claim greater influence in the global order, they need to demonstrate it through pragmatic policies that protect civilians, strengthen the rule of law, and prioritize human dignity over mineral contracts and short-term business deals. This is less about replacing America and more about safeguarding Africa’s future on its own terms.

Excerpt:

Carine Kaneza Nantulya is deputy Africa director at Human Rights Watch

A dominant figure in Kenyan politics for decades, Odinga made five unsuccessful attempts at the presidency.

By External Source
Oct 15 2025 (IPS-Partners)

 
Poverty is not just scarcity. It is exclusion, stigma, and invisibility.

Poverty is not a personal failure. It is a systemic failure. A denial of dignity and human rights.

Families in poverty often endure intrusive surveillance, burdensome eligibility checks and systems that judge, not
support.

Single mothers, Indigenous households, marginalized groups face increased scrutiny, suspicion and separation.

Over 690 million people live in extreme poverty.

Nearly half the world lives on less than USD$6.85 per day.

Around 1.1 billion people suffer multidimensional poverty.

Two-thirds of people in extreme poverty are in Sub-Saharan Africa.

Progress has slowed and the path to 2030 is fragile.

Social and institutional maltreatment is structural.

It lives in rules, routines and default practices.

When people avoid help because of fear, the system has already failed them.

This year’s “International Day for the Eradication of Poverty” calls for three fundamental shifts:

From control to care:
– Designing systems based on trust, not suspicion.
– Reducing punitive conditions and simplify documentation.

From surveillance to support:
– Prioritizing family-strengthening: income support, childcare, housing, mental health and justice

From top-down to co-created solutions:
– Including families in design, budgeting, delivery and evaluation.

Supporting families strengthens many goals:
– Poverty Reduction
– Health & Wellbeing
– Quality Education
– Gender Equality
– Decent Work and Social Protection
– Reduced Inequalities
– Peace, Justice and Strong Institutions

“Too often, people living in poverty are blamed, stigmatized, and pushed into the shadows.” – UN Secretary
General, António Guterres.

2030 is looming. We must act now.

 

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Pakistan end world champions South Africa's unbeaten run by completing a 93-run victory in an entertaining and hard-fought first Test in Lahore.

Bapi Mondal’s morning routine in Bangalore is a world away from his ancestral village, Pakhiralay, in the Sundarbans, West Bengal. He wakes before dawn, navigates heavy traffic, and spends eight long hours molding plastic battery casings. It’s not the life his honey-gathering forefathers knew, but factors like extreme storms, rising seas, and deadly soil salinity […]

The World Bank and IMF Annual Meetings for 2025 are taking place in Washington, D.C., October 13–18, at the World Bank Group and IMF headquarters. The meetings bring together the international community to discuss global economic challenges and opportunities, with a focus on creating jobs and driving sustainable growth, according to the International Finance Corporation (IFC) and World Bank.
 
Meanwhile, with prices at record highs, the IMF should use its gold reserves to fund much-needed support for developing countries.

By Michael Galant and Ivana Vasic-Lalovic
WASHINGTON DC, Oct 15 2025 (IPS)

Countries across the Global South face an accelerating climate crisis, tepid growth, and unsustainable levels of debt. Yet hopes of finding support at the International Monetary Fund’s (IMF) Annual Meetings in Washington are dim. The IMF is tightening its purse strings — even as it leaves untouched a vast treasure of more than 3,000 tons of gold that offers a prime opportunity to stabilize the global economy.

While IMF lending yielded record income in FY2024, fears that Trump will cut off funding — combined with the organization’s exposure on an ill-advised,
US-directed mega-loan to Argentina — have prompted the Fund to reassess its assistance to those most in need.

At last year’s meetings, the IMF implemented a system of tiered interest rates on loans made through the Poverty Reduction and Growth Trust (PRGT) — a formerly interest-free lending facility for low-income countries.

The Fund also elected to maintain (if slightly modify) its controversial “surcharge” policy, which generates revenue for the IMF by charging onerous fees to highly indebted middle-income countries. Income from surcharges is now effectively being used to fund the PRGT, forcing these distressed countries to
subsidize the Fund’s concessional lending.

Yet while the IMF squeezes financing from the very countries it is meant to support, it is, in fact, sitting on hundreds of billions of dollars worth of idle firepower.

When the Fund was founded in 1944, members were required to pay at least a quarter of their initial contribution in gold, which at the time was the foundation of the global monetary order. The gold standard is long gone, but the IMF still holds 90.5 million ounces — or over 3,000 tons — of the precious metal, historically held at the central banks of major shareholders.

Critically, this gold is still on the IMF’s books at a price determined in 1944: roughly $48 per ounce. This year, amid geopolitical uncertainty and increased demand from central banks, prices soared to all-time highs; for the first time ever, gold prices now exceed $4,000 per ounce.

In other words, the IMF’s gold reserves are worth over 85 times more than its accounting would suggest.

Selling just 1.5 percent of these holdings would cover the income generated from all surcharge payments through 2030. Selling 10 percent would cover the PRGT’s entire current lending envelope for a decade.

There’s precedent for such a move. In 1999, when gold was $282 per ounce, the IMF sold about 444 tons of gold directly to IMF members, who immediately returned it at the same price in fulfillment of outstanding debts.

The IMF was thus left with the same quantity of gold holdings, but with about $3 billion in profit to provide debt relief for low-income countries as a part of the celebrated Heavily Indebted Poor Countries Initiative.

In 2009, with gold prices still less than a third of today’s, the IMF board agreed to sell an eighth of its holdings outright, generating $15 billion in proceeds, a portion of which was transferred to the PRGT.

So, what’s stopping the IMF from doing the same today?

An agreement to sell gold reserves requires an 85 percent vote of the IMF board. As the proceeds from gold sales are, by default, distributed to IMF members in proportion to their quotas, a sale to bolster IMF lending power would require prior commitment from members to return their share of the windfall. But these political hurdles have been cleared before, in both 1999 and 2009.

While the US, which alone holds an effective veto over major IMF decisions, would have to agree to any arrangement, it’s difficult to see a cause for objection. Strengthening global economic stability — and therefore demand for US exports — at no new cost to the United States should hardly run afoul of an “America First” agenda.

Moreover, common concerns about the impacts of a sale on the gold market mean little in today’s context. With prices at record highs, the market can easily weather any price drops from an IMF sell-off, which can in any case be mitigated through the use of phased sales and off-market transactions.

And while some have historically fretted over the prudence of selling off a portion of the institution’s “rainy day” fund, selling while prices are sky-high makes good financial sense, and would easily leave plenty for future need.

Even if the political challenges to a gold sale prove insurmountable, there may still be a way to unlock its benefits; the IMF can simply revalue its gold holdings to match the market price, thus increasing the assets on its books without conducting even a single transaction.

Germany, Italy, and South Africa have all recently taken similar actions with their national gold holdings, and there is some speculation that the United States might follow suit. In fact, the IMF’s own accounting guidelines recommend countries value gold holdings at the market rate.

Awareness of the need to tap the IMF’s undervalued gold reserves is growing. In the past year, leading experts, top officials from Brazil and South Africa, and the G-24, which represents developing country interests at the Fund, all called on the organization to consider a gold sale.

Seeing that call through would take additional political will. But if the alternative is letting developing countries founder in the current crisis — or worse, bleeding them dry in order to protect the IMF’s balance sheets — then the choice couldn’t be clearer.

Michael Galant is a Senior Research and Outreach Associate, and Ivana Vasic-Lalovic is a Senior Research Associate, at the Center for Economic and Policy Research (cepr.net) in Washington, DC

IPS UN Bureau

 

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Prime Minister Pedro Sanchez's government is kicking against the prevailing mood among Western nations.