Bretton Woods
Update 72
Saying one thing but meaning another: IMF advises protecting jobs and cutting spending
While Hungary has booted out the IMF, Greece is still toeing the line of IMF austerity demands. The IMF has softened its rhetoric in some places, notably on unemployment, but critics worry that many staff are still pushing fiscal retrenchment that may damage growth prospects.
Climate sabotage: Bank undermines direct access to UN Adaptation Fund
The World Bank is actively undermining the ability of the Philippines to directly access urgently needed climate adaptation finance without involving intermediaries.
IMF boardroom crisis: Europeans stubbornly cling to chairs
IMF governance reform was thrown into disarray in August by a fight between the US and Europe over reducing European board seats. Other promised reforms, including to voting shares and leadership selection appear to be going backwards.
World Bank coal lending up amid energy furore
Energy policy at the World Bank remains controversial, with escalating lending to coal projects and a delay to the energy strategy review. Past Bank-financed energy projects in Ghana and Albania are also proving problematic.
Palmed off: World Bank’s palm oil framework ‘business as usual’ despite environmental and rights con
The World Bank’s draft framework for investment in the palm oil sector was met with dismay from civil society groups, who said that it failed to offer a credible strategy to address manifold social and environmental problems.
Gender-blindness and conditionality cast shadow over record World Bank lending
New evidence of worsening gender performance and persistent conditionality has led critics to ask if the Bank is fit for purpose.
IMF at MDG summit: Poor countries should spend less, not more
While the IMF has focussed on its mandate review and governance reform, the institution’s policy towards low-income countries has taken a backseat. Civil society groups are worried that the IMF has returned to promoting fiscal austerity and constraining the investment needed to reach goals on poverty.
Failing to fix the foundations
As the IMF mandate reform concludes, significant changes prove elusive.
Undermining development? IFIs’ role in extractive industries in disarray
Ongoing mining projects’ impacts on rights, gender and the environment suggest a new approach to the sector is needed, as the IMF and World Bank dole out contradictory advice on mining revenues.
World Bank and climate: new roles, old challenges?
With the World Bank and IMF under consideration as significant sources of climate finance, controversy continues around the Bank’s Climate Investment Funds (CIFs) and carbon offset projects.
IMF crisis lending reform faces fundamental critiques
While the IMF has given the green light to new crisis lending windows, critics argue that it should focus instead on other ways of preventing crises.
World Bank admits ‘land grab’ risks, proceeds anyway
A long-suppressed report by the World Bank remains supportive of large-scale land acquisitions in developing countries by foreign investors, despite highlighting significant risks for vulnerable populations. Civil society groups have argued that the Bank is complicit in violations of human rights associated with the so-called ‘land grabs’
World Bank assesses water strategy, faces barrage of criticism
In September, the Bank released a progress report on the implementation of its 2003 water resources strategy, while criticism mounts over its hydropower lending, water resource management and support for private sector provision.
IFI-induced debt catastrophes?
Natural disasters in Haiti and Pakistan have heightened calls for larger debt cancellation, rather than new IMF loans, and for a rethink of the sovereign debt system.
IFIs on trade and investment: Liberalisation bias returns
The World Bank’s latest report on foreign investment and its new trade strategy are part of a worrisome trend that involves the Bank’s growing use of tools other than conditionality, to restrict the space for countries to pursue alternative, country-tailored development strategies.
Multilateral Investment Guarantee Agency (MIGA)
The Multilateral Investment Guarantee Agency (MIGA), which forms a part of the World Bank Group, promotes foreign direct investment (FDI) in its 175 member countries.
IMF changing position on financial sector taxation?
After the IMF’s initial dismissal of a global financial transactions tax, its opposition lately seems to have softened. An August draft working paper by a Fund staffer was welcomed by campaigners for its positive view of FTTs.
No taxation for Latvian IMF staff, argues Fund
According to magazine The Baltic Course, the IMF does not wish to pay taxes on the salaries of employees at its representative office in Latvia, despite these workers being Latvian citizens.
World Bank transparency weak in practice
In July the Bank’s new disclosure policy came into effect (see Update 68), but NGOs are warning that it fails to adequately cover ongoing processes and negotiations with governments.
Basel III: IMF says tiger, critics say mouse
In mid September, the Basel committee on banking supervision released its “Basel III” rules.
IEO invites input on IMF evaluation topics
The Independent Evaluation Office (IEO) of the IMF issued a list of possible topics for future evaluations of the IMF and invited input from civil society and external stakeholders.
IFIs sceptical of rating agencies
Doubt about private credit rating agencies’ assessments have grown since 2008 and are being echoed by World Bank president Zoellick.
Swazi unions tell IFIs to “go hang”
The IMF, World Bank, and African Development Bank criticised the 4.5 per cent pay rise of Swazi public servants in August, because of the country’s tight fiscal situation.
UK reviews World Bank, multilateral aid
In June the new UK coalition government announced a hasty review of its funding to multilaterals, including the World Bank Group.
Jamaica: IMF halts school construction
Newspaper Jamaica Gleaner reported in early September that the country’s IMF programme has slowed the building of new schools.
Bangladesh minister to World Bank: “Stop dictating”
In a June parliamentary speech, the Bangladesh agriculture minister vehemently attacked the World Bank’s role in the country’s affairs.
Call for IFC performance standards delay to strengthen rights
Civil society organisations are calling for the extension of the schedule of the International Finance Corporation’s (IFC, the Bank’s private sector arm) consultation on its performance standards to allow opportunity for human rights and other controversial issues such as climate to be incorporated.
Coca-Cola withdraws IFC loan application following union challenge
Coca-Cola Pakistan retreated from a proposed a $60 million loan from the International Finance Corporation (IFC), the World Bank’s private sector arm, after a trade union announced plans to challenge the investment.
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