The World Bank and IMF are institutions of a highly debated reputation. Their programmes and policies have attracted a lot of scrutiny and debate from civil society groups especially in Latin America and Africa. Comparatively, their activities and interventions have not been as much discussed and debated in the Arab region. The Jubilee 2000 website lists fifty-seven countries which have campaigns for the cancellation of unpayable debt, yet only one country from the Middle East and North Africa (MENA) appears on this list. Jubilee Iraq was launched in March 2003 to fight against having the Iraqi people carry the burdens of debts that were accumulated throughout Saddam’s rule.
Advocacy campaigns on debt cancellation and reform of the WB and IMF have not been seen in the Arab region. One of the major reasons could be the lack of democracy that restricts civil society participation, in addition to the lack of transparency and access to information. Moreover, advocacy and lobbying roles that civil society groups play in the Arab region are relatively limited. In general, these groups are still caught up in service provision roles and have not undertaken successful advocacy campaigns with the same impact. The unsuccessful outreach of global campaigns in the MENA region is due to the above mentioned conditions. However, such potential campaigns could build up a popular momentum representing a challenging factor to inadequate economic models and policies being imposed on the region.
In this context, the WB and IMF held their 2003 annual meetings in the United Arab Emirates (UAE), where they did not expect to be faced by angry protestors and loud civil society lobby groups. In a speech after the closure of the meetings, UAE’s minister of finance and industry highlighted the positive role that the IFIs have had on UAE development. He explained that “in line with IMF and World Bank recommendations, we (UAE government) have pursued a very active policy in terms of accountability and inclusiveness such that the IMF has acknowledged the UAE as one of the most transparent in the region.” He explained that the Arab countries call for a greater role of the IFIs in the region through improved technical assistance, enhanced role of a regional office, and intensified role for the International Finance Corporation (the private sector arm of the WB group).
lack of democracy restricts civil society participation
Yet on the other hand, the IFIs’ structural adjustment policies have been linked to failed development policies in many Arab countries, increased debts, and higher unemployment levels. Policies of the IFIs have pushed privatisation of public sector institutions, which is blamed for higher unemployment levels, an increase in social tensions and threats to social stability. External debts of the Arab countries were estimated at around $188 billion in 2004, rising from $144 billion in 2000. Of these debts, the political will of the US alone led to the cancellation of $7 billion owed by Egypt for its support in the 1991 Gulf War.
It is evident that there is no consensus over the impact of the IFIs’ interventions. A study done in 2000 by the joint economic committee of the US Congress found a failure rate of 55-60 per cent for all Bank-sponsored projects . Development policies cannot be one-size-fits all. They are directly linked to social structures, infrastructure capacities, and the nature of the economy, which vary between countries. Effective participation of various stakeholders in the identification of adequate national policies is essential. Policies advised by the IFIs cannot be based on the political whims of countries in control of the Bank or the Fund. It is necessary for civil society organisations in the Arab region to take upon themselves the responsibility for pushing for a more inclusive and transparent process of IFI intervention. They should start by raising essential points regarding the selection and timing of interventions, and the adequacy and alignment of these interventions with national policies and needs. They should also push for more space to participate in reflecting the needs and priorities of development in the Arab region, which should lead IFI projects instead of being led by political forces. It is important to realise that all civil society groups, whether working on development, human rights, women and gender issues, democratic change, or other areas, have a stake in this as long as they aim at a more just society.
