Bretton Woods
Update 86
World Bank says “stars are aligned” for large infrastructure
The World Bank, in conjunction with the G20, is reinvigorating its infrastructure focus, paying particular attention to leveraging resources from the private sector and investing in fragile and conflict affected states. It announced a return to big hydropower projects, despite continued concerns about projects in the Democratic Republic of Congo, Guatemala and Uganda.
An accountability mechanism without teeth?
The International Finance Corporation (IFC), the private sector arm of the World Bank, is under internal scrutiny for two projects in Albania.
The Doing Business review: a test of World Bank leadership
By this year’s October annual meetings, we will know what the World Bank board has decided on what happens next to that institution’s controversial and most popular publication, the Doing Business report.
The World Bank and the Green Climate Fund: “an ironic contradiction”?
Since the creation of the UN Framework Convention on Climate Change (UNFCCC) Green Climate Fund (GCF) in 2010, concerns have grown about the World Bank’s potential role in designing policies to determine the allocation of resources for adaptation and mitigation activities in developing countries.
IMF’s labour pains
Two April IMF reports purport to present a new view on labour market policy, however, they have attracted heavy criticism from trade unions as inaccurate and flawed.
IFIs on capital: flowing in same direction
The IMF’s long-awaited guidance note on capital flows fails to remedy the faults of the ‘institutional view’ on capital account. The World Bank’s long-term thinking is also emphasises liberalisation.
Education for all?
World Bank president, Jim Yong Kim has put global education on his priority list, however major ideological differences are emerging between education coalitions about whether this should be delivered through a private or public model.
IMF push for MENA subsidy reforms
The IMF signed a deal with Tunisia in June, after its renewed attempt to lend to Egypt failed in April, while civil society remained concerned about the legitimacy and transparency of the negotiations.
IMF’s Greek mea culpa
In June the IMF released an ex post assessment of its 2010 lending programme to Greece which described a series of errors and found that the Fund consciously chose to break its own rules on the sustainability of the programme.
IFC blended finance
The International Finance Corporation (IFC), the World Bank’s private sector arm, has recently formalised its ‘blended finance’ approach, undertaking investment in the private sector at lower than market rates using subsidies provided by donors. Donors’ concessional funds are combined with the IFC’s own non-concessional funding.
5-star development
Controversial IFC investments in tourism and infrastructure projects continue to cause friction with local communities, prompting a new complaint to the Compliance Advisor/Ombudsman.
World Bank “short-sighted and cross-eyed” on fossil fuels
As the World Bank released a new report on the impacts of climate change and is due to discuss its energy focus, it defended its engagement in fossil fuels, including the Kosovo coal power plant.
A healthy step forward? World Bank outlines vision for healthcare
Bank president Jim Yong Kim has publicly prioritised universal health coverage and education however, critics worry about increased support for private companies to deliver these services.
World Bank’s new strategy: ‘deliverology’ for the private sector?
As the World Bank’s attention moves from goal-setting to implementation of a new strategy, it is becoming clear that it intends to further prioritise the role of the private sector and adopt many practices of its private sector arm, the International Finance Corporation (IFC), as the main pillars for the whole group.
IMF champions growth
As global economic risks and stagnation in major economies are expected to persist, the IMF’s rhetoric is increasingly anti-austerity, reflecting changing priorities in member states. However, states where IMF policy influence is greatest, spending cuts continue.
IFC financed ‘land grabs’ in Cambodia, Laos and Honduras exposed
While the World Bank’s leadership is further embracing private equity funds, the IFC’s investment in financial intermediaries is again hitting the headlines over allegations of ‘land grabs’ in South East Asia and lack of respect for indigenous people’s rights in Honduras.
El Banco Mundial carece de liderazgo en materia de género
Un informe de abril de 2013, por la ONG estadounidense Acción por la Igualdad de Género comparó las políticas de género de las IFIs. Los resultados mostraron que el Banco Mundial ocupaba el tercer lugar, después del Banco Interamericano de Desarrollo (BID) y del Banco Asiático de Desarrollo (BAD).
IMF board responds to IEO assessment
Following the publication of the Fund’s response to the IEO evaluation report which was endorsed by the Board in April, the IMF has published its three-part implementation plan on international reserves including a successor paper updating the Fund’s 2011 work on reserve adequacy.
Early warning system for risky IFI projects
US NGOs International Accountability Project and Center for International Environmental Law have launched a new Early Warning System to alert communities to projects funded by multilateral development banks that may have a negative impact on human rights.
IMF-sanctioned reforms “hurting Malawians”
Voice Mohne, chair of the council for non-governmental organisations in Malawi, declared to President Joyce Banda at a May public meeting that the adoption of the “full set of IMF reforms” by Banda’s government was “too much for an average Malawian to absorb”, because “there is no meaningful safety net mechanism”.
World Bank: greening an airport near you
Just a month before releasing a new report on climate change and the need to “turn down the heat” (see Update 86), the Bank agreed a $50 million loan to the Chinese prefecture of Shangrao, located in the northeast of China’s Jiangxi province, to build a new airport.
Indrawati under investigation over Indonesian banking scandal
In early May, World Bank managing director Sri Mulyani Indrawati answered questions from the Indonesian Corruption Eradication Commission in relation to a 6.7 trillion rupiah ($675 million) 2008 bailout of Bank Century.
Watanabe new chair of Inspection Panel
Eimi Watanabe, a Japanese national, has been appointed to chair the World Bank’s Inspection Panel for one year starting in May.
World Bank governance reforms benefit rich countries
A June academic paper argued that rich countries manipulated the last World Bank governance reform process in 2010 (see Update 60) and proposed a new, fairer way to distribute voting rights at the Bank.
MIGA approves new facility for fragile states
The Multilateral Investment Guarantee Agency announced in mid April the creation of a new Conflict-Affected and Fragile Economies Facility (CAFEF).
Financial sector risks remain
A May IMF staff discussion note evaluated international efforts to address gaps in regulation of “a relatively small number of large, complex financial institutions” which remain “very difficult to regulate, supervise and resolve”.
Job vacancy: Research Assistant
The Bretton Woods Project is looking for a research assistant focussed on researching policy issues relating to the International Finance Corporation, development finance institutions, and World Bank-backed public-private partnerships and World Bank climate and infrastructure finance.
World Bank to publish procurement contracts
The World Bank has revealed the detail of its 2012 promise to publish contracts online, following on from its procurement review.
Turkey pays off IMF debt
Turkey discharged its debt to the IMF in May, by paying a final installment of $421 million after decades of loans and stand-by arrangements.
IMF reform still stuck in US Congress
As developing countries continue to complain about the US failing to approve IMF governance reforms, the US Treasury formally resubmitted a request for the approval to US Congress.
Finally resolving debt resolution?
A March IMF policy paper examined long-standing approaches to debt crisis management including for the first time assessing the civil society proposals for a fair and transparent arbitration process.
World Bank moves on ‘land grabs’
In April World Bank president Jim Yong Kim said that the Bank shares the concerns “about the risks associated with large-scale land acquisitions” and that “additional efforts must be made to build capacity and safeguards related to land rights”.
Thai CSOs walk out of FCPF process
In mid April four independent advisers to the UN urged that all of the World Bank’s activities should be included in the Bank’s safeguards review to ensure consistency with international human rights standards.
Ethiopia refuses Inspection Panel investigation
Ethiopia has said that it will not cooperate in a proposed investigation by the World Bank’s accountability mechanism, the Inspection Panel (IP), into a programme linked to the Bank that according to the indigenous peoples filing the complaint led to “forced villagisation”.
UN experts call for World Bank safeguards with human rights
In mid April four independent advisers to the UN urged that all of the World Bank’s activities should be included in the Bank’s safeguards review to ensure consistency with international human rights standards.
World Bank-led Burundi coffee privatisation challenged on human rights grounds
In mid April two UN special rapporteurs raised the alarm about the World Bank-led privatisation of Burundi’s coffee industry and called for suspension of the policy pending a full human rights-based impact assessment.
Indian protests against IFIs
Indian civil society coalition the People’s Front against International Financial Institutions held a People’s Forum and demonstrations against the annual meetings of the Asian Development Bank (ADB) in Delhi in early May.
Pakistan needs to borrow “to repay IMF”
In late June, finance minister Ishaq Dar informed Pakistan’s national assembly that the government “will have to go to the IMF” in order to repay current outstanding loan instalments to the Fund.
