JOSEPH TCHUNDJANG POUEMI AND PRESIDENT RUTO’S CRITIQUE OF THE IMF: A CALL FOR REFORM

Joseph Tchunjang PouemiPresident Dr. William Ruto in China

When the story of Africa’s economic journey is told, the name of Joseph Tchundjang Pouemi will stand tall among the continent’s most courageous economic thinkers. The Cameroonian economist, who once worked at the International Monetary Fund (IMF), offered a blistering critique of the global financial system from an African perspective—a critique that is more relevant today than ever, especially in light of President William Ruto’s today's calls for fundamental reform of international financial institutions.

Pouemi’s 1980 magnum opus, Money, Servitude, and Freedom, warned of a global monetary order structured to maintain African dependency rather than empower it. His rejection of the IMF’s policy orthodoxy stemmed from firsthand experience: he joined the IMF in 1977 but resigned shortly after, disturbed by what he saw as inflexible, damaging prescriptions imposed on developing countries. To Pouemi, the IMF had become what he famously dubbed the “Instant Misery Fund,” prescribing austerity no matter the source or nature of a country’s economic woes.

Today, President Ruto’s criticisms align squarely with Pouemi’s analysis. He has accused the IMF of enforcing loan conditions that suffocate growth and compromise national sovereignty. Ruto’s frustration with IMF-imposed fiscal tightening mirrors Pouemi’s concern that such policies lead to shrinking economies, especially in countries already grappling with balance-of-payments deficits.

The case for reviewing IMF policies is now stronger than ever. Pouemi identified three major flaws in the global financial system that remain unresolved:

1. The US Dollar Hegemony: Using a national currency—the US dollar—as the global reserve currency exposes African economies to financial shocks beyond their control. As the US Federal Reserve raises interest rates to curb inflation at home, African nations with dollar-denominated debt face soaring repayment costs, leading to fiscal crises.

2. The Burden of Adjustment on Deficit Nations: While deficit countries are forced into austerity, surplus countries face no obligation to adjust. This creates a systemic deflationary bias, forcing African countries to cut public spending and welfare just to stay afloat.

3. Inequitable Reserve Allocation: IMF’s Special Drawing Rights (SDRs), designed to inject liquidity into the global economy, disproportionately benefit wealthy nations. When SDRs worth US$650 billion were recently issued, only 5% reached the entire African continent, while 60% went to advanced economies that least needed them.

This deeply flawed system cannot continue unchallenged. President Ruto’s calls for reform are not only justified—they are long overdue. The IMF must move away from its historical reliance on austerity and begin to recognize the unique challenges of developing economies. Blanket policies that demand slashing public expenditure, removing subsidies, and devaluing currencies are not development strategies—they are recipes for economic stagnation and social unrest.

Instead, a new framework is needed—one rooted in flexibility, fairness, and respect for national contexts. It should empower African nations to design and implement homegrown solutions, supported by financing that does not come with strings that undermine development goals.

Pouemi’s insights offer a compelling intellectual foundation for this shift. His critique was not anti-globalization—it was a call for a fairer globalization. A system where African voices are not just heard, but shape the rules. A system where economic sovereignty is not sacrificed at the altar of international approval.

As President Ruto and other African leaders continue to push for a new economic order, revisiting Pouemi’s work is not just an academic exercise—it is a political imperative. The need to review IMF policies is urgent, and Africa must lead the charge, drawing strength from its own visionaries who saw the traps before they were fully set.