THE HISTORIC ROLE OF IFI’S IN MOZAMBIQUE The IMF and World Bank use their power The Covid-19 pandemic enabled the Frelimo to insist on conditionalities, and in order government to mobilize over a billion to receive loans from the IMF and World dollars of additional loans and grants Bank, the Mozambican government agrees (Figure 1) with the agricultural sector to their conditions. This means that the IMF receiving 14% of investment while social and World Bank shape policy at a national protection receives 9% (World Bank, 2021). level. This stifles democratic political Other prominent sectors include education, processes, enforces policies that do little public administration, transportation and to address the conditions of poverty faced water and sanitation (Figure 2). In addition, by large numbers of Mozambicans and the World Bank’s International Finance prevents developmental alternatives from Corporation (IFC) finances a number of taking shape. private projects, in the agribusiness, oil and Progressive social movements have a gas sectors (IFC, 2021). critical role to play in pushing for defiance The next section explores the role of IFIs to the conditions imposed by the IMF in shaping labour and social protection and World Bank, so that development policy, through funding in response to the alternatives that benefit working people Covid-19 pandemic. may be put in place. A globalized justice movement is necessary now, more than ever. Figure 2: IBRD and IDA commitments by sector (in millions of dollars) Source:World Bank (2021) 13 Fast-tracking Financialization - International Financial Institutions’ Responses to the Covid-19 Pandemic in Mozambique