Bretton Woods
Update 85
BRICS challenge IFIs
Large middle-income countries jointly initiated alternatives to the World Bank and IMF in March, but advocates are not satisfied with either set of institutions. While challenge to the IMF has been welcomed, civil society actors fear that a new development bank would serve “vested interests” and could lead to “exploitation”.
Dr Kim, where is Mongolia’s economic diversification?
In late February the World Bank’s private sector arm, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) boards decided to spearhead a $4 billion dollar syndicated loan to a copper, gold and silver mine located in the Gobi Desert in Mongolia. An increasing number of people believe that it…
Cyprus – whose crisis?
The economic crisis in Cyprus erupted during the second cycle of the European recession of 2011 as a result of harsh austerity policies imposed since 2010 in Europe. It is a new crisis born of a failed response to the original European crisis.
India complains Doing Business “not robust”
As an independent panel begun its review of the World Bank’s controversial Doing Business rankings, India’s public criticism of the rankings added weight to global governmental and civil society opposition.
New World Bank strategy accused of being “unambitious” and “cosmetic”
World Bank president Jim Yong Kim’s new overarching strategy on ending absolute poverty and creating shared prosperity elicits criticism for ineffectively tackling inequality and sustainability.
Safeguards: World Bank urged to incorporate human rights commitments “in all of its activities”
As the consultations on the World Bank’s safeguards review progress, indigenous peoples groups and NGOs raised concerns over the process. There were also increased calls for the Bank to respect human rights in its policies, including a report from a UN Special Rapporteur.
Carbon capture
The World Bank has revealed details of its new climate change strategy, including promotion of carbon markets despite concerns from indigenous groups. While new conversations about the Bank’s energy investments are anticipated, further criticisms were made over its involvement in fossil fuels and hydropower projects
World Bank staff incentives
The World Bank Group’s staff incentives and compensation schemes are considered important drivers of the Bank institution’s successes and failures.
G20 working on international financial architecture, while the IMF “to bury its head in the sand”?
The G20’s agenda on the international financial architecture looks to tackle sovereign defaults, but not ‘currency wars’.
Democracy: “an enemy to the IMF”?
The legitimacy of IMF engagement with Middle East and North African nations and eurozone crisis countries continues to be heavily criticised.
IFC Honduran client linked to death squads
The International Finance Corporation (IFC, the Bank’s private sector arm) loan to Honduran palm oil producer Corporaci
IDA 17: Back to big infrastructure, flirting with climate finance
While donors and the World Bank focus on IDA structural reform, the proposed IDA shift towards financing infrastructure and climate adaptation raises concerns over development impacts.
IFIs on capital flows: new tune, same song?
While the IMF-supported banking sector restructuring in Cyprus includes a strict set of restrictions on capital movements, the World Bank and IMF are failing to embrace a more pragmatic approach to capital account regulation.
US deadlock stalls IMF governance reform
The IMF governance debate goes beyond the mathematics of voting shares and representation, bringing to the fore critical questions about the Fund’s legitimacy.
IFC invests in Kenyan private international school
The International Finance Corporation (IFC, the private sector arm of the World Bank) in mid-March proposed a $7 million investment in Kenyan private education firm, Brookhouse Schools Limited.
World Bank ignores IEG on logging
The World Bank board’s Committee on Development Effectiveness responded in early February to a December evaluation of its forest strategy by the Bank’s Independent Evaluation Group (IEG), by accepting some recommendations but “disagree[ing] with the IEG’s recommendation regarding timber concession reform in tropical moist forest countries.”
Social accountability compromised?
The World Bank’s controversial Global Partnership for Social Accountability, a new mechanism for the Bank to provide financing directly to civil society organisations, opened its first call for proposals from mid February to mid March.
Six in a row: another Japanese national appointed to head MIGA
World Bank president Jim Yong Kim announced the appointment of Keiko Honda as executive vice president of the Multilateral Investment Guarantee Agency in late March, the sixth Japanese national in a row to hold the post.
IFC appoints American to general counsel role
The International Finance Corporation appointed US-national Ethiopis Tafara as its vice president and general counsel on 1 April.
Resettlement concerns in China
Tens of thousands of people in China are facing resettlement as a result of flood management, lake basin and urban infrastructure projects approved for World Bank funding in late March.
World Bank’s trust fund annual report shows slight decline in number of funds
The Bank published its 2012 annual report for trust funds end January.
Campaigners demand new IFC financial sector strategy
In early March, 45 civil society organisations wrote to World Bank president Jim Yong Kim complaining that the International Finance Corporation (IFC, the World Bank’s private sector arm) response to the an audit of its lending to the financial sector “fail[ed] to acknowledge the gravity of the findings and [was] notable for its lack of…
Indian NGO faults IFC energy project
A November field study by Indian NGO the Research Collective has found that an International Finance Corporation (IFC, the Bank’s private sector arm) supported coal-power plant run by GMR Kamalanga Energy Limited (GKEL), financed through a financial intermediary, has caused water pollution in the Odisha region.
Tanzania water project “complete failure”
A Tanzanian water and sanitation project, in which the Bank invested $164 million from 2003 to 2010, has been “a complete failure” according to NGO Civil and Political Rights Watch (CPRW).
2013 World Bank-IMF Spring meetings schedule
Tentative schedule of the World Bank-IMF spring meetings in Washington DC, from 19th to 21st April 2013.
Growing Africa?
The Bank’s continued enthusiasm for agribusiness was evident in its March report, Growing Africa, which highlighted the potential of the African agriculture sector, currently valued at $313 billion a year, to triple if governments and business leaders engage in radical policy reform and generate public private partnerships.
French police raid Lagarde home
French police searched the Paris apartment of IMF managing director Christine Lagarde in late March as part of an investigation over the way Lagarde, as French minister of finance, handled the compensation settlement of French millionaire Bernard Tapie.
IEO: IMF reform implementation “not working well”
The second external evaluation of the IMF’s Independent Evaluation Office (IEO), discussed by the IMF board end March, evaluated how well the IEO has met its institutional mandate since 2006.
IFC-Coke ‘development’ project to sell drinks
In a three-year $100 million partnership, announced in mid March, the IFC and Coca-Cola will work together with female entrepreneurs in Africa and other emerging markets.
‘Undesirable’ Red-Dead canal deemed “feasible”
The Bank’s public consultation on its $9.97 billion ‘Red Sea – Dead Sea Water Conveyance’ project, which aims to “save the Dead Sea from environmental degradation” and increase hydro-power whilst building “a symbol of peace”, ended in March.
