Disagreements between donors about how much grant money the Bank should give to the poorest countries has held up replenishment of the International Development Association (IDA), Bank’s soft-lending arm. The US proposes to spend 50 per cent of IDA money in grants, but Clare Short, Britain’s development minister has described this plan as “crazy.” The UK is concerned that IDA might be weakened unless more money is provided. The UK is producing a briefing note on the grants issue prior to the next IDA negotiations in early February.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.