International donors, including US Agency for International Development and UK Department for International Development, have halted aid to Afghanistan following the IMF’s suspension of funds in February. The IMF decision was based on reports of corruption and insolvency at Kabul Bank, but in February the Afghan Ministry of Finance blamed “ineffective” international technical support for exacerbating the crisis. In May, the World Bank decided to hold back $40 million in loans to Malawi because the country had not completed a second review of its performance regarding its IMF package. Funding cuts from other donors followed the suspension, which caused foreign donors’ contributions to its national budget to drop from 30 to 13 per cent.
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.
Donate to the Bretton Woods Project
Established in 1995, the Bretton Woods Project (BWP) is a civil society watchdog of the International Monetary Fund and World Bank. By monitoring the work of these institutions, supporting and connecting critical civil society communities, and advocating for transformational change, the Project challenges their power and fights for the development of policies that are gender transformative, equitable, environmentally sustainable and consistent with international human rights norms.