[Intl-tobacco] IMF POLICIES ACCUSED OF RAISING SMOKING RATES

[Robert Weissman]

For Immediate Release		For more information, contact:
September 23, 2002		Robert Weissman, Anna White, 
					202-387-8030

IMF POLICIES ACCUSED OF RAISING SMOKING RATES
- Anti-Tobacco Demonstration to be held at the IMF, 9/23 at 5:30 pm -

*** Essential Action will hold a small protest, featuring a giant
cigarette box and excellent visuals, outside the IMF at 5:30 on Monday,
September 23, 2002. ***

The International Monetary Fund (IMF) has supported policies in
developing countries around the world that will raise smoking rates,
charges an advocacy group report issued today.

The report, "Needless Harm," documents IMF support for reduction of
tobacco taxes or tariffs in five countries, and support for tobacco
privatization in five others. 

Health economists -- including at the World Bank -- unanimously agree
that tobacco taxes reduce smoking rates. Health economists -- again
including those at the World Bank -- also agree there is overwhelming
evidence on the harms of tobacco tariff reduction. There is very strong
reason to believe tobacco privatization will have similar harmful
impacts as tobacco trade liberalization.

The report comes as the IMF is facing massive criticism for the impacts
of its policies on developing countries. The IMF and World Bank will
hold their annual meetings in Washington, D.C. on September 28 and 29,
and again face major protests.

"The IMF's market fundamentalism as applied to tobacco is endangering
millions of lives," said Robert Weissman, co-director of Essential
Action and co-author of the report. "With tobacco, the stakes are life
and death. The ideologically driven IMF is recklessly promoting policies
that are likely to increase smoking rates, without taking into account
the health impact of its policies."

Following the U.S.-forced opening of East Asian markets to foreign
tobacco imports in the late 1980s and early 1990s, smoking rates in the
region surged. World Bank studies estimate smoking rates rose by 10
percent as a result of the tariff reductions. A GAO study found smoking
rates among teenage girls quintupled the year after the market opening
in Korea. 

"The IMF seems intent on repeating the market-opening disaster in East
Asia," said Weissman. "Privatization will replicate and deepen the harms
from market opening, as the multinationals are able to entrench
themselves and introduce the slick marketing, advertising and product
manipulation that enables them to lure millions of new smokers,
especially among girls and women."

The full text of the report is available at: www.essentialaction.org/needlessharm