Bretton Woods
Update 77
World Bank policies “enabling” African land grab
New research claims World Bank Group’s policies facilitate land grabs in Africa and favour the interests of financial markets over food security and environmental protection.
Bondholders vs the public: Outcry over IMF-EU eurozone loans
The sovereign debt crisis in the eurozone, where Greece now needs a second round of loans, threatens major economies like Spain and Italy, but IMF-backed lending packages that demand deep austerity with insufficient attention to lenders’ responsibilities anger the public.
IFC helping Western multinationals exploit Ghana’s water crisis
The water supply crisis in Ghana is being exploited by all manner of pro-market corporate bodies ranging from the World Bank to Coca-Cola. While the World Bank is licking its wounds from failed private water management initiatives, such as the Aqua Vitens Rand Limited management contract in Ghana, the International Finance Corporation (IFC), its private…
Navigating complex dilemmas
The World Development Report 2011: Conflict, Security and Development is shifting the language of international policy on supporting peace and development in fragile and conflict-affected countries. Monica Stephen of International Alert examines how the World Bank’s operations need to adjust to support peace and development.
Evaluations suggest IMF, World Bank research ideologically driven
A report by the IMF’s arms-length evaluation body, the Independent Evaluation Office (IEO), suggests that Fund research does not allow room for alternative perspectives, while academics attack the World Bank for pursuing ideologically driven research agendas.
IFC weakens World Bank’s transparency commitment
The new access to information policy at the International Finance Corporation (IFC), the World Bank’s private sector arm, has been criticised for being weaker than its public sector counterpart, and for allowing sweeping exceptions.
China and the World Bank
China joined the World Bank in April 1980, and since then has been one of its largest borrowers and recipients of technical assistance. In recent years, China has gone beyond the only role of recipient country and has increased its influence on the Bank.
IEG slams World Bank trust funds
IEG report slams Bank trust funds for contributing to ineffective aid.
IFC updated performance standards
The International Finance Corporation (IFC), the Bank’s private sector arm, has concluded a two-year review of its performance standards on environmental and social sustainability, but its weak human rights approach has angered rights organisations.
Forty years is enough?
On the 40th anniversary of US default on its gold convertibility obligation, decreasing confidence in the dollar has strengthened calls to reform the international monetary system. The IMF is accused of ignoring inequities at the core of the system, while developing countries are increasingly seeking alternative regional arrangements.
Programmed for Results?
In August, the Bank released a policy paper and draft operational policy for its controversial new Program For Results (P4R) lending instrument, aiming to rush through its approval by the end of the year, despite significant concerns.
Scandals threaten IFI governance
With the new IMF head and a Bank’s managing director under judicial investigation, questions continue to be asked about IFI governance, while implementation of existing reforms remains slow.
IMF advice accused of risking new recession
Since the financial crisis, the IMF’s rhetoric has tried to be nuanced about austerity policies and the need to stimulate growth, but critics says its actions risk pushing the world back into recession and hurting workers.
IEG annual report slates World Bank’s education work
The Bank’s Independent Evaluation Group (IEG) released its annual report at end August, again finding shortfalls and uneven results across the World Bank Group. While the Bank’s leadership has steered the institution towards more private sector work, outcomes in the education sector and the Middle East and North Africa (MENA) region have dropped substantially.
Donor governments join critical chorus on the CIFs
The Bank-housed Climate Investments Funds (CIFs) are facing increasing criticism from donor governments and civil society groups, while concerns that the Bank’s role in the new Green Climate Fund (GCF) constitutes a conflict of interest continue.
World Bank deaf on food speculation, vocal on financial instruments
As agricultural market continue to experience increasing volatility, and record food prices intensify global hunger and poverty, the World Bank’s approach to the crisis, which emphasises the use of commodities markets and corporate agriculture, is found wanting by groups demanding food sovereignty and food security.
World Bank won’t give up on carbon markets
As the Bank’s own report declares the carbon market is failing, the Bank is still pushing forward carbon finance initiatives.
Big infrastructure, small participation
The World Bank, in conjunction with the G20, is prioritising massive, cross-border infrastructure with private sector involvement, but has failed to involve any local communities.
World Bank pushing dirty coal and massive hydro
The Bank’s energy projects in Kosovo and India are being lambasted by critics for threatening livelihoods and the environment.
Community files complaint against IFC in Papua New Guinea
The Compliance Advisor Ombudsman (CAO) of the International Finance Corporation (IFC), the World Bank’s private sector arm, has accepted a complaint by local communities in Papua New Guinea referring to the IFC’s role in advising the government on drawing up laws for special economic zones (SEZs).
Arab civil society rejects IFI involvement
In late June the Egyptian Ministry of Finance turned down a $3 billion loan package from the IMF, citing the rejection as a response to “public debate”.
South African loan to Swaziland hinges on IMF conditions
The crisis-hit government of Swaziland agreed a 2.4 billion rand ($324 million) loan from South Africa in August, which will be conditioned on the adoption of IMF-recommended fiscal reforms.
IMF may face resource shortfall, warns Lagarde
In late July, IMF head Christine Lagarde raised the prospect that the IMF simply does not have enough money to confront the possibility of major sovereign debt crises in Europe.
South Sudan born free from IFI debt
While South Sudan achieved formal independence in early July, it was not until late July that full agreement was reached that left South Sudan with no debt, apportioning all existing debts, including significant arrears to the IMF and World Bank, to Sudan alone.
UK announces priorities for World Bank
In August the UK released its priorities for reform of the World Bank.
IMF staff warm to ‘Robin Hood tax’
An August IMF working paper by John Brondolo takes the IMF into new territory, giving detailed information on how a financial transaction tax (FTT) could be implemented.
2011 World Bank-IMF Annual Meetings schedule
Tentative schedule of the World Bank-IMF spring meetings in Washington DC, from 21 to 26 September, 2011.
US legislators try to cut funding to IFIs
In late July, a US House of Representatives sub committee, now controlled by the Republican party, moved to slash funding to multilateral institutions.
Ecuador shuns the IMF, borrows from China
Ecuador is shunning IMF credit facilities in favour of a long-term loan arrangement with China in exchange for oil.
World Bank lending falls by 20 per cent
The Bank announced in June that its commitments for the fiscal year ending 30 June, had fallen to $57.4 billion, from an all time peak of $72 billion last year.
IEO publishes draft issues papers on IMF advice, learning systems
Over the summer the Independent Evaluation Office of the IMF released draft issues papers for two forthcoming evaluations.
Bank upgrade of Zambia fails to impress
The World Bank’s reclassification of Zambia from low-income country to lower middle-income country has been hailed as an economic achievement by Zambia’s president Rupiah Banda, but is less celebrated in other quarters.
World Bank busted over bus project in Lima
The Bank board approved in June a management response to a complaint from residents of the Barranco district in Lima, Peru, about the impacts of a bus service project that it supported.
Ukraine protests against IMF policies
In early July, thousands of protesters took to the streets in the Ukrainian capital Kiev to try to block pension reforms promised as part of the country’s IMF loan.
Bank misdefining domestic debt?
At its debt sustainability conference in June, the Bank emphasised the importance of governmental use of domestic borrowing rather than international borrowing.
Will the Fund consider equity issues in its tax approach?
NGOs ActionAid and Eurodad published in July a review of IFIs’ approach to taxation.
Tribunal increases protection for World Bank whistleblowers
In June the World Bank Administrative Tribunal, an internal justice body that oversees the treatment of employees, ordered the Bank to reinstate a former staff member, John Kim, who was fired in 2007 for telling a journalist about conflicts between former Bank president Paul Wolfowitz and the Bank’s board of directors.
IFC investment linked to forest loss
A group of researchers from the American Sociological Association have completed the first cross-national study that examines the impact of International Finance Corporation (IFC) lending on forest loss.
Outcry over World Bank role in Indian policy review
A June public statement by more than 70 NGOs, social movements and universities from across India opposes the Indian government’s decision to commission the Bank to review anti-poverty schemes in the country, including the Public Distribution System (PDS), a subsidised national food security scheme.
Red-Dead sea plan in hot water
Three civil society groups have filed a complaint with the World Bank’s Inspection Panel, its complaint mechanism, over the Bank’s feasibility study for a project to channel water from the Red Sea to replenish the Dead Sea.
IFC hotel investment: “corporate welfare”
The International Finance Corporation (IFC), the World Bank’s private sector arm, has come under fire for approving a $26 million loan to Saudi Arabian prince Al-Waleed bin Talal to build a luxury hotel in Ghana.