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World Bank austerity measures worsen matters in poor countries

World Bank Headquarters, Washington DC. [iStockphoto]

The International Monetary Fund (IMF) and World Bank insist on austerity.

Leaders, economists, intellectuals and the academia all echo the same rhetoric - that governments must cut expenditure and tighten their belts. Countries facing economic problems are supposed to take austerity measures before the Bretton Woods institution can lend them and save their currencies from collapse.

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