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.
A new report compiled from workshops organised by Jubilee South, Focus on the Global South and other southern civil society groups claims structural adjustment logic and policies essentially remain unchanged in PRSPs.
Many eyes are now looking to see how Argentina will manage its financial and political crises.
An alternative proposal to debt standstill is to create larger bailout funds.
The Heavily Indebted Poor Country (HIPC) Initiative is failing to deliver debt relief, reports the Financial Times (9/10/01).
The World Bank and the IMF are bound by obligations enshrined in international human rights covenants, and must incorporate human rights considerations in the formulation and review of their Poverty Reduction Strategy Papers (PRSPs).
In September US Treasury Secretary, Paul O’Neill, told the Senate Banking Committee that he would favour establishment of an international bankruptcy law as an alternative to IMF bailouts.
Heated debate is brewing between the US government which proposes that the Bank’s International Development Association (IDA) should provide up to 50 per cent of its resources as grants and some European governments (supported by the Bank) who argue that to do so would deplete IDA’s resources.
In August, Argentinian teachers, doctors and public workers went on strike and unemployed workers and students blocked roads to protest against rising unemployment and cuts in pensions and salaries.
At a forum in Lagos Nigerian President Olusegun Obasanjo accused the World Bank, International Monetary Fund and creditor nations of being unfair to developing countries trying to repay crippling external debts, reports Reuters (17/5/01).