Bretton Woods
Update 67
Breaking the chains?
Violations of the IFC’s performance standards in a palm oil project in Indonesia could have far reaching effects, drawing attention to the IFC’s responsibility for the impact of whole supply chains as a review of their social and environmental standards gets under way.
The Byzantine governance of the IFIs
On August 28, in Bariloche, Argentina, the presidents of twelve South American countries met to discuss a life-or-death issue for their newly created Union of South American Nations (Unasur): the Colombian-US agreement allowing for extra-regional military to set up a chain of bases very close to the heart of the Amazon.
Dollars, devaluations and depressions
The international monetary framework which emerged after the collapse of the Bretton Woods system in the 1970s has proved volatile, damaging and prone to crises. It is time for a fundamental redesign and the introduction of a global reserve currency, to help stabilise international exchange rates, smooth commodity prices, promote international economic cooperation, and prevent…
IMF advice paradox
During the last year, endowed with record funding and painted by the G20 as the ‘saviour’ of crisis-hit developing countries, the IMF has embarked on a public relations offensive to prove that it has changed its traditionally austere policy advice and conditions and has become ‘more flexible’.
IFIs and Zimbabwe
The allocation of special drawing rights to Zimbabwe have stirred controversy about whether the country should use these to bolster its flagging public finances, while the fragile coalition government struggles with an external debt burden projected by the IMF to hit almost $7 billion by the end of the year.
Business as usual?
The World Bank’s planned energy strategy review focusses on energy access for the poor and environmental sustainability, but NGOs fear it will justify continued fossil fuel finance.
G20 versus UN: the battle continues
The future of international economic governance and financial reform is still being debated separately at the United Nations and the G20, but little progress is being made.
IMF conditions stoke controversy, prompt strikes
The IMF’s loans across Europe, from Iceland to Romania are stoking deep controversy and protest. Resistance is building from civil society aganist the austerity benig imposed.
Safeguard policies and performance standards
Originally drafted as internal operational policies to guide staff, World Bank safeguard policies evolved after pressure from environmental and social groups in the 1980s and were first officially implemented in 1998. They aim to protect people and the environment from the adverse effects of Bank-financed operations and are based on international agreements, even if these…
Bank’s approach to agriculture under fire
The World Bank and the IFC have committed to increase funding to agriculture to help tackle the food crisis, but their enthusiasm for agribusiness has been questioned by academics who suggest the benefits will not reach the hungry.
Good cop, bad cop?
There has been significant concern about IMF programmes in Honduras, where the IMF has not made clear whether it will deal with coup leaders who seized power from the elected president, and in Sri Lanka due to concern over allegations that the government is abusing the human rights of hundreds of thousands of Tamils.
Contract transparency missing as IFC expands oil investments in Africa
As the World Bank’s private lending arm, the International Finance Corporation (IFC), expands its role in the African oil and gas sector, civil society groups are insisting that it adopt a requirement for full contract transparency in all of the extractive industries projects that it finances.
Concerns over IFC’s upcoming performance standards review
The IFC has launched the three year review of their performance standards on social and environmental sustainability but civil society has raised concerns about the review and critiques remain with regard to the content of the standards.
Flexibility or seeds of new crisis?
A flurry of papers by the IFIs, UNCTAD and NGOs raise concerns over renewed debt difficulties in poor countries just as the IFI’s complete a review of the debt sustainability framework to allow more borrowing.
Jockeying for position over World Bank’s role as climate talks near
With roughly two months until the Copenhagen climate negotiations commence, questions loom about quantities of climate finance and which institutions will channel it, leaving speculation about the role the World Bank will end up playing
Rebranding hides little change for IMF lending
The IMF has launched a rebranding exercise for all of its lending to low-income countries, and while the new facilities will deliver more resources, the money seems destined to come with the usual damaging conditionality attached.
Asia debates moving away from IMF and West
At a conference in Penang, Malaysia in August, officials, academic and members of civil society from the Asian region sought to chart a way towards greater regional cooperation that would insulate them from the IMF and financial crises.
REDD plans move forward despite concerns
As part of the programme for reducing emissions from deforestation and forest degradation, the readiness preparation proposals of Guyana, Panama and Indonesia were advanced to the next step by the Participants Committee.
Bank’s $100 billion annual lending plan
The progress report for G20 finance ministers said that World Bank lending was projected to reach $100billion annually by 2011, which compares to current annual overseas development assistance aid from all donors of$120 billion.
New videos on ifiwatch.tv
ifiwatch.tv offers windows on the environment, development, economic justice and financial architecture – documentaries, reports, feature films, music videos, expert analysis and more – plus news and blogs.
2009 World Bank-IMF annual meetings schedule
Tentative schedule of the World Bank-IMF spring meetings in Istanbul, September 30 – October 7, 2009.
UK still missing the point on IFIs
Over the summer, the UK government released a new policy paper on international development and a very late ‘annual’ report into its activities at the IMF. The policy paper strengthens target setting for the World Bank, but fails to adequately tackle governance, conditionality, human rights accountability, and climate finance.
Evaluating Fund research and crisis approach
Over the summer the Independent Evaluation Office of the IMF issued two draft issues papers for feedback on its planned evaluations of the IMF’s research and the performance in the run-up to the financial crisis.
Bank urged to improve municipal management
In June, the Independent Evaluation Group released a study on World Bank experience in improving municipal management, finding that the MDPs led to better financial management, municipal information systems and procurement procedures, but were weak regarding monitoring and evaluation, operations and maintenance, private finance for municipal services, and, most crucially, failed in most cases to…
IMF’s absurd demands on Nicaragua
Nicaragua complained in July that the IMF made “absurd demands” when it asked the government to eliminate all tax exemptions on non-profit entities.
IFC deceptions on Doing Business
Excitement caused by the International Finance Corporation
Bank hired in Israel without bidding process
The World Bank was awarded a $500,000 contract to examine the Israeli Electricity Corporation’s financial condition with no bidding process. If this were a Bank-funded project, such a procedure would not be allowed.
SDRs allocated, bonds sold, IMF gold next
In early September the IMF completed the allocations of special drawing rights (SDRs) that were agreed by the G20 in April, with a $250 billion general allocation and a $34 billion special allocation designed to help members of the IMF who joined the institution after 1981. The IMF also completed its first ever sale of…
World Bank caught between Red and Dead Sea
The World Bank has been involved in administering a $16.7 million fund for a feasibility study and environmental and social assessment (ESA) of the highly controversial Red Sea-Dead Sea canal
IDA replenishment starts soon
Although there has not been a large take up of the fast-tracking facility available to IDA countries, it could affect the timetable for IDA replenishment, if it causes IDA funds to run low before the end of the legal period of IDA 15 in 2011.
Clouds over Bank weather insurance
The World Bank has published several papers on its pilot programmes for index-related insurance in developing countries to hedge against weather-related risks. A September briefing from the Bretton Woods Project, however, faults the Bank for failure to assess the broader implications of partly relying on private insurance and unregulated international financial markets to manage weather-related…
Bank’s conditions still problematic in Latin America
World Bank lending has increased dramatically in Latin America, but an analysis of the conditionalities attached show that the Bank is still pushing its traditional harsh macro-economic framework, despite the changes in policy that the crisis has brought to the rest of the world.
Job openings with the Project
The Bretton Woods Project is looking for two research assistants, one focussed on promoting the fundamental financial changes needed in response to the financial and economic crisis, and the other focussed on reform of the World Bank, related to climate finance, human rights, governance, and private sector development.