The International NGO Forum on Indonesian Development (INFID) has criticised the Bank and Fund for failing to properly supervise the use of loan funds which were intended to help refinance the shattered banking sector.
East Asia & Pacific
Massacres perpetrated and condoned by the Indonesian army have led to calls to halt World Bank and IMF aid programmes to Indonesia.
In response to concerns that ruling party Golkar would misuse World Bank funds for election purposes, the Bank and IMF agreed in May to put new loans into a special Bank of Indonesia account.
The World Bank Group has appointed the first IFC/MIGA Compliance Advisor/Ombudsperson.
The Yayasan Duta Awam Foundation (YDA) has conducted a 15 month grassroots investigation of the Bank-financed Integrated Swamps Development Project.
In early June the World Bank rushed to defend the proposed China Western Poverty Project from charges that it would disrupt the lives of ethnic Tibetans and had undergone too limited environmental scrutiny.
MONLAR, a network of Sri Lankan people’s organisations, has written to the World Bank pointing out that social and equity issues have been overlooked, and democracy has been infringed in its pursuit of structural adjustment in Sri Lanka.
The worst fears of massive increases in poverty in Indonesia are “unfounded” according to a report by the World Bank, which draws on 3 new surveys on the social implications of the financial crisis.
The coordination, coverage and targetting of public works schemes in Indonesia, part of the Bank’s safety-net programme, has been poor, and resources have been diverted for other uses.
At the end of February the World Bank and the Government of Korea hosted a conference entitled Democracy, Market Economy and Development.
The World Bank has been criticised for taking too long to implement its safety-net programmes in Indonesia, and for failing to ensure that public works benefit the most needy.
The World Bank has established an East Asia Crisis working group to tackle some of the social aspects of the financial crisis.