Ecuador intends to prevent oil and mining disputes from going to the Bank’s International Centre for the Settlement of Investment Disputes (ICSID). Bolivia announced in May that it wished to withdraw from ICSID; Venezuela and Nicaragua have said that they intend to do so (see Update 56). Bolivia’s withdrawal is being contested by ICSID’s ruling allowing a claim lodged by a subsidiary of Telecom Italia. Ecuador could either withdraw completely, or tell ICSID that it no longer wishes to allow certain categories of disputes to be arbitrated, though this might not carry legal weight. Ecuador is facing a billion dollar claim brought by US oil giant Occidental.
The IMF and the World Bank are increasingly engaged with the challenge of addressing how tax avoidance and evasion affect developing countries, but need to address the role played by multinational enterprises and tax havens in exacerbating inequality and undermining countries’ domestic revenues.
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