Key ruling: IMF can be sued
The International Monetary Fund Headquarters in Washington, DC.
What you need to know:
- A case can be made that draws a direct line from IMF activities in Kenya to the deadly consequences.
- What does the IMF owe to the families that lost loved ones during the recent protests in Kenya?
The United States Supreme Court has ruled that the International Monetary Fund and the World Bank can be sued in cases where their activities have caused harm to local communities.
The 7-1 ruling that was delivered in 2019, stemmed from a case that was filed by a group of farmers in India who alleged that a power-plant built through financing from the International Finance Corporation (the private sector arm of the World Bank) had disrupted and harmed their livelihoods.
This ruling is important in light of the recent protests in Kenya that have led to a loss of life and destruction of properties.
News reports indicate that the IMF anticipated that the fiscal policies and conditions it was imposing on Kenya would lead to street protests against the tax proposals in the Finance Bill.
This leads to an important and critical question about IMF’s culpability and legal exposure arising from the deadly protests in Kenya.
Human rights abuse
Given the US Supreme Court ruling, it seems that a case can be made that draws a direct line from IMF activities in Kenya to the deadly consequences.
What does the IMF owe to the families that lost loved ones, to the owners whose businesses were destroyed or to those who have lost their jobs?
There is a second lawsuit from Honduras where IFC financed a palm oil plantation. Security guards from that plantation were alleged to have attacked and killed members from surrounding communities.
The case from India and the one from Honduras were filed by EarthRights International, a legal non-profit that is based in Washington DC.
The question that is important to ponder then is: If the IMF and World Bank can be sued for environmental and human rights abuse, can they also be sued in cases where they knowingly push for policies that result in social unrests, destruction and death?
That’s a question that can best be answered in a court of law.
Prof Sam Chege is a Professor of Journalism and Mass Communications and the director of the Huck Boyd National Center for Community Media at Kansas State University, USA. Email: [email protected]
