10 September 2001
The G8’s mandate has been seriously questioned in recent months, but this has not stopped G8 ministers setting new directions for the World Bank and IMF.
As governments are again being asked to contribute to the World Bank’s International Development Association (IDA) facility, NGOs and others are raising questions about the role and effectiveness of the Bank’s lending through IDA to the poorest countries.
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.
It has been a bad summer for the World Bank Group arm which insures private investments.
At the 80th anniversary of the World Bank and IMF, global civil society must maintain pressure on the Brazilian and South African G20 presidencies to ensure the forth Financing for Development Conference in 2025 results in urgently required international financial architecture reform.
Multilateral development banks can reduce their dependence on hard currency lending and make local currency financing a central element of their developmental mandate.
