Bretton Woods
Update 74
IMF nostalgia: debate on capital account liberalisation all over again?
As emerging market economies expand tools to actively manage international financial flows to cope surges, a liberalisation reform of the IMF’s statutes is up for debate again.
Dollar debate continues
In January, French president Nicholas Sarkozy stoked the debate about reforming the international monetary system while deliberations on the potential future role of the IMF’s special drawing right as a prototype global reserve currency continued.
The IMF’s new conditionality
While the 2007-2010 crisis offered the International Monetary Fund an unexpected opportunity to demonstrate that it was serious about changing its emergency lending practices, Daniela Gabor argues that in Eastern Europe the Fund ended up pushing unnecessary fiscal austerity and privileging private financial interests.
‘Groupthink’ IMF slammed for mistakes before crisis
The Independent Evaluation Office (IEO) found major IMF lapses in judgement before the financial crisis, including the promotion of “light-touch regulation”, casting doubt on the Fund’s ability to contribute to taming global finance.
World Bank corners climate funds?
As governments reached an agreement at the climate negotiations in Cancun in December, the World Bank continued to stir controversy as it attained a role in a new global climate fund, launched new carbon market initiatives, and touted the success of the controversial Climate Investment Funds.
IMF serious about measuring conditionality impacts?
More criticism emerged of IMF programmes as it begins the process of another conditionality review. Political upheaval in Ireland and continued protests in Greece are focussing attention on the IMF’s controversial economic policy advice.
IFIs labour pains
Critics say IMF policy contributed to fuelling unrest in Egypt and Tunisia, while the IFIs reiterate concern about growing inequality and global unemployment. At the same time unions accuse the World Bank’s Paying Taxes report of condemning tax and social contributions.
For the love of markets
As record high food prices have contributed to unrest in Egypt, Tunisia and beyond, the World Bank’s unwavering faith in markets has stirred debate about how best to address the multitude of factors underlying a global crisis in food prices. Meanwhile, World Bank president Robert Zoellick continues to champion efforts to bring agriculture into carbon…
IFC standards revision leaves out human rights
As the review of the performance standards of the International Finance Corporation’s (IFC), the World Bank’s private sector lending arm, enters the last stretch, civil society groups are up in arms about the latest draft, which has taken steps backward, particularly in relation to the inclusion of human rights.
Heat turned up on World Bank energy strategy
As the Bank’s energy strategy approaches finalisation in mid 2011 pressure is growing on the institution to incorporate criticism by civil society groups of its current lending practices.
Bankspeak of the year 2010
Annual Bretton Woods Project award for the most incomprehensible or absurd use of language in a Bank or Fund document or speech.
The IFI’s approach to tax avoidance and evasion
The World Bank and the IMF formally recognise tax avoidance and evasion as a critical problem for developing countries’ domestic resource mobilisation. The Bank’s public position on tax evasion and tax havens does not however identify concrete measures to stop investing in companies practicing tax avoidance. The IMF addresses tax policy under its surveillance mandate…
Donor IDA pledges fall flat
The World Bank gained a 12 per cent inflation adjusted increase from the 16th fundraising round for its low-income country arm, the International Development Association (IDA), despite flat donor contributions, amid renewed criticism of its overall approach.
World Bank-backed child labour in Uzbek agriculture
The Bank’s support of agricultural in Uzbekistan has landed it in hot water suggesting that it does not take seriously the social implications of such lending.
Unprecedented ruling on IFC immunity
Ghana’s Supreme Court ruled in January that the International Finance Corporation (IFC), the Bank’s private sector lending arm, is not immune from legal action in the country.
IFC ignores rights in the Philippines?
The International Finance Corporation (IFC), the World Bank’s private sector lending arm, has been accused of neglecting the rights of indigenous people in the Philippines.
World Bank sexual health investment falls short
The World Bank’s Reproductive Health and Action Plan: 2010-2015, which was released in April 2010 recognises that “women’s full and equal participation in the development process is contingent on accessing essential [reproductive health] services.”
WDR Gender outline misses women’s rights
In January, the Bank released an outline of the 2012 World Development Report on gender equality and development.
Brazil angrily rejects IMF fiscal warning
“The managing director of the IMF must have gone on vacation and some of the orthodox old men … got distracted and wrote this stupid thing”, said Brazil’s finance minister Guido Mantega about a January IMF report on the country’s fiscal situation.
BIC publishes Bank lobby toolkit
In December US NGO Bank Information Center published an Executive Director Advocacy Toolkit. The guide offers advice for civil society organisations in their attempts to engage executive directors (EDs) of the World Bank.
World Bank draft education strategy slated
A number of criticisms of the World Bank’s latest draft of its new education strategy emerged before the document was discussed by a committee of the Bank’s board in late January.
Bank supports controversial Tajik dam?
The World Bank is currently funding an Environmental Impact Assessment (EIA) for the Rogun dam in Tajikistan, demonstrating its interest in this controversial project.
South Sudan: saddled with IFI debt?
With South Sudan set to become the world’s newest – and potentially poorest – country in July, a big question remains about what should be done with Khartoum’s $37.8 billion foreign debt, including around $1.6 billion owed to the IMF and $600 million to the World Bank.
IMF loan to Bangladesh might slow growth
In early December, the IMF reached a “broad agreement in principle” with the Bangladesh government to lend $1 billion under the Fund’s Extended Credit Facility.
IMF to splash out on office refurb?
After a spike in lending that shored up the IMF’s income and financial position, the Fund board is considering various options for refurbishing its headquarters building in Washington.
New IMF investment database shed lights on tax avoidance
The IMF released its Coordinated Direct Investment Survey (CDIS) – the first comprehensive database on global foreign direct investment – in December.
IEG reports mixed World Bank effectiveness
The World Bank’s arms-length Independent Evaluation Group (IEG) released its annual report, Results and performance of the World Bank Group in November last year.