to consider the change. They will Staff in black: hold off any decision on salary cuts until the end of January. IMF faces structural adjustment Paying the piper? Further work on efficiency and reduced expenditures was to be Due to pressure from major shareholders the IMF must cut its budget. Internal documents completed for a meeting of the W board’s budget committee at start W reveal details of the restructuring, including staff layoffs and charges for technical February. Proposals on the table W assistance, but fail to shed light on whether the Fund will shift away from dictating to poor include a new department for mul - . B tilateral surveillance and forcing R countries and towards overseeing global markets. E staff to work on multiple countries T
T in the proposed larger divisions. R O O
The December announcement by B I N Rather than reducing the frequen - N H E
managing director Dominique I G W
H cy of Article IV reports, annual W A
O Strauss-Kahn that he would lay off Y
- check-ups on members’ economies, B U O R
300 to 400 staff, 15 per cent of the Y
/ Strauss-Kahn prefers “less-paper D T H O
S work force, is being viewed as a R intensive” board discussions based O G P quid pro quo to secure US Treasury O O R
D on mission statements and oral pre -
O support for giving the IMF an sentations rather than formal J
E endowment. The G7 has demand - papers. C ed that the IMF cut its expenses T For low-income countries there .
O before considering how to boost its are plans to reduce staff because of R income (see Update 58). Inside less debt-relief work. Strauss-Kahn G sources have said that the manag - favours reducing the frequency of ing director has been holed up in programme reviews, currently his office working on the Fund’s every six months for borrowers or 59 budget and how to come up with those with oversight arrangements. cuts to the work force, meaning But there was no talk of civil soci - that he has had little time to work ety’s preferred option: drastically J
A on what is supposed to be the “cor - scaling down, if not eliminating N nerstone” of Fund reform: changes altogether, the Fund’s work in low- U to its governance structure. A income countries (see Update 52). R Leaked copies of Strauss-Kahn’s The most radical change will be Y January statements to the board in the provision of technical assis - / and staff indicate that the Fund
F tance (TA), where charges, varying E will be targeting middle manage - according to the income of the B
R ment. He would “like the process country and the importance the U of downsizing to rely on voluntary Fund attaches to the work, will be A
R approaches to separation to the introduced. The IMF wants donors Y extent possible.” The biggest to pay for IMF TA and is consider - 2 immediate change is to retirement
0 ing adopting the trust fund model
0 rules to allow any staff member used by the Bank (see Update 47). 8 over the age of 50 to retire with an This is very different from civil unreduced pension. A move to society proposals that TA be driv - combine divisions within depart - en solely by country demand. The ments should further encourage compensation disputes in 2007. In issue related to salaries: pay for the IMF’s proposals, aside from soak - division chiefs and other older staff January a legal case initiated by the IMF’s lowest level staff, 87 per cent ing up aid resources, would worsen to voluntarily leave. Another Staff Association Committee (SAC) of whom are women. Management the ability of developing countries incentive may be an effort to members to stop a salary restruc - had proposed a 15 per cent pay cut to control the TA agenda. The vary - “reduc[e] the costs of Fund techni - turing exercise, which had begun which prompted an end-August ing charges would ensure that low- cal assistance for example by … in 2004 and was supported by the debate of the staff association, with income countries will be chan - making greater use of former Fund board, was rejected by the IMF over 500 members taking part. An nelled into TA based on Fund and staff.” The IMF planned to open administrative tribunal. One of the IMF intranet article said that “staff donor priorities. In contrast NGO the retirement window from the officers of the SAC then launched out of solidarity wore black to ActionAid’s Real Aid reports have end of January. an ultimately unsuccessful cam - protest proposed changes to [sup - called for TA that is “fully untied, Dissension in the ranks paign to amend the constitution of port staff] compensation.” predictable, co-ordinated and chan - the association to make it more According to inside sources, some nelled through a host government According to internal documents, transparent and accountable. support staff ended up successful - managed fund.”Some other pro - the IMF’s usually orderly hierarchy IMF management has yet to ly appealing directly to the board posals in the managing director’s has already been convulsed by resolve the most controversial before an early September meeting continued on page 4
Bank violates indigenous Whoever loses, the Bank IMF conditionality high, New figures cast shadow over rights always wins effectiveness low poverty reduction claims ––page 2 ––comment, page 3 ––page 4 ––page 7 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008 Bank violates indigenous rights
The World Bank-funded Nam to the construction of mega proj - rights to land and resources. He donors and international agencies Theun 2 (NT2) dam in Lao PDR is ects in the name of “national asserts that “multilateral donors are “should refrain from supporting under scrutiny for its violation of development” is one of the most also duty bearers in respect of poli - programmes and projects which human and indigenous peoples’ “serious threats to indigenous cies and programmes on behalf of either directly or indirectly, are or rights, and its failure to achieve peoples’ survival in Asia”. He indigenous peoples”. The report could be conducive to the viola - the development and environ - gives the NT2 dam as an example provides a comprehensive defini - tion of the rights of indigenous ment goals it has promised (see in light of its displacement of as tion of the term ‘free prior and peoples in the countries receiving Update 56, 45). many as 6,200 indigenous people. informed consent’, and states that development aid.” A September report by the NT2 He also refers to reports from Lao the application of this principle “is Lao dam impact policies “a shambles” power company’s panel of ‘inter - PDR of the lack of recognition a basic prerequisite for ensuring ◊ www.probeinternational.org/catalog/ national experts’ finds that restor - given to indigenous peoples’ respect for the right of indigenous content_fullstory.php?contentId=6691&c ing peoples’ livelihoods could take rights and threats and intimida - peoples to self-determination”. at_id=21 nine years or “possibly more”, tion made against members of The World Bank is sorely lack - warns of “significant impoverish - indigenous or tribal peoples. ing on the application of this prin - NT2 dam in Lao PDR ment” in hundreds of affected vil - A second report by the special ciple: having replaced the term ◊ internationalrivers.org/en/southeast- lages, and says more donor aid is rapporteur cites examples of how with “free prior and informed asia/laos needed. The report has since national poverty reduction strate - consultation leading to broad Reports by the special rapporteur become the subject of a public spat gies have failed to meet the prior - community support”, amidst ◊ ap.ohchr.org/documents/sdpage_ between Canadian NGO Probe ities of indigenous peoples by fail - much criticism (see Update 56). e.aspx?m=73&t=9 International, and the World Bank ing to recognise their collective The UN report recommends that and other project representatives. In a December letter to the edi - tor of Thai newspaper, The Nation , IFC and health: “unsubstantiated claims" Probe’s Grainne Ryder refers to numerous social and environmen - In a December report financed by the Gates that figures presenting the private sector as an equal tal inadequacies of the project and Foundation, the International Finance Corporation or majority provider also hide the fact that at least 60 argues that project revenues (IFC) estimates that over the next decade $25 to $30 per cent of the population in Africa can not access should go directly to villagers suf - billion will be needed to meet the needs of Africa’s health care of any kind. fering losses caused by the dam’s health care. In The business of health in Africa: the IFC An article by US NGO Bank Information Center operations. In an indignant announced that it will coordinate $1 billion in equity points out that in many cases of public service pri - response, Peter Stephens, Bank investments and loans to finance private sector vatisation, companies have focussed their efforts on communications officer, claimed health provision in Sub-Saharan Africa. serving those most able to pay and neglected the that Probe has misrepresented the The study found that the private sector accounts impoverished majority. Though the IFC emphasises experts’ report, and states that the for about half of the region’s $16.7 billion spending the need for strong regulatory systems to safeguard project will generate $2 billion on health care, and that impoverished people are just the interests of less wealthy populations, few over 25 years for poverty reduc - as likely as the better-off to use private providers. It specifics about how these would work are provided. tion and that the project is “pro - argues that this spending will grow to $21.2 billion In a December letter to the Financial Times , gressively overcoming chal - by 2016. As a result of the proliferation of ‘user fees’ Barbara Stocking, director of NGO Oxfam asserted lenges”. The Bank has also geared toward cost recovery at public clinics - often that “profits cannot be made in serving people this announced that it will publish a introduced at the instigation of the World Bank - the poor without some form of public subsidy. ” Anna book about the challenges of NT2, difference in cost between public and private servic - Marriot, Oxfam's health policy officer added that the optimistically entitled Doing dams es is often limited. The IFC has argued that private IFC report “is brimming with unsubstantiated and right , due out later this year. providers are better equipped and staffed than their unconvincing claims. In the absence of rigorous In a November report to the public counterparts, and have shorter waiting times. research the report’s call to divert public money for human rights council, UN special Health care professionals and activists are con - private health care is nothing short of irresponsible”. rapporteur on human rights and cerned at the quality of the research on which the IFC to push private health care in Africa, BIC indigenous peoples, Rodolfo report is based and fear that the IFC’s push for an ◊ www.bicusa.org/en/Article.3653.aspx Stavenhagen states that forced increased role for the private sector may not be relocation or resettlement due matched with appropriate regulation. They point out
Bank violates own IFC offloads illegal Panel investigates Bujagali dam under policies in Congo timber trader Ghana landfill second investigation
The findings of an Inspection Panel investi - The IFC has withdrawn from its 3.35 per In October the World Bank board accepted As a result of claims submitted by the gation into the Bank’s failure to comply cent equity stake, worth up to $7.5 million the Inspection Panel’s recommendation for Ugandan NGO, National Association of with its own safeguard policies in its sup - in the Singapore-based global commodities a full investigation into a complaint filed by Professional Environmentalists, members of port for forest sector reforms in the trader, Olam International, following allega - the NGO Centre for Housing Rights and the Inspection Panel and the African Democratic Republic of Congo (DRC) was tions that the company was sourcing tim - Evictions (COHRE) on behalf of the Development Bank’s internal investigation discussed by the board in January (see ber illegally in the Democratic Republic of Agyemankata Community regarding the arm visited Uganda to carry out an investi - Update 57). Twelve Congolese pygmy Congo (see Update 57). IFC stated that its Kwabenya landfill project in Accra, Ghana gation into the Bujagali dam (see Update groups filed the complaint in 2005, regard - decision was due to “policy considerations”. (see Update 57). Bank management 56, 55) in November. This is the second ing the exclusion of indigenous peoples A series of recent reports by Greenpeace acknowledged that resettlement, compen - time the Panel has investigated the dam, from consultation on Bank-supported forest outlined the company’s dire environmental sation, and environmental aspects need to for which the European Investment Bank sector reforms, adverse impacts of increased and social record and pointed to the IFC’s be addressed. According to COHRE the has also approved funding. The matters commercial logging, and the absence of lack of due diligence in funding it: “the Bank has required the government of under investigation include: hydrological participatory land use planning processes. case of Olam International illustrates the Ghana to take a series of steps including risks, cultural heritage, inadequate econom - The board endorsed the management Bank’s failure to reduce poverty and pro - the formulation of a proper resettlement ic analysis and questions over the dam’s action plan though it fails to make clear mote sustainable development.” action plan. The results of the inspection ability to meet growing electricity demands how the Bank has learned from its failures. process are expected in early 2008. in the country. ◊ www.greenpeace.org/international/ ◊ www.bicusa.org/en/Article.3645. news/world-bank-cuts-olam- ◊ www.cohre.org/store/attachments/ ◊ internationalrivers.org/en/africa/ aspx funding121207 quarterly%20vol4-no2_final.pdf bujagali-dam-uganda 2 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008
N THE PAST YEAR, particu - Whoever loses, the Bank ment’s plantation programme. larly after the Stern report This initiative is actually aligned Isuccessfully made tropical always wins: Profits from with the government of countries like Indonesia and Indonesia’s IMF programme of Brazil into climate villains, the Indonesian forests next 1998 that opened exportation of World Bank has been rushing to palm oil, and pulp and paper expand its carbon business. industries (including tree planta - COMMENT Encouraged by conservation by Torry Kuswardono tions) so that Indonesia could NGOs and northern governments pay its debts. WALHI, Indonesian Forum for Environment (mostly countries with commit - With these two contradictory ments to reduce greenhouse gas initiatives, the Bank actually does emissions under the Kyoto Protocol), the Bank developed its campaign not have any intention of curbing environmental and climate crises to ‘combat’ climate change through curbing carbon emissions from nor poverty. The Bank’s only intention is to gain as much profit as deforestation in tropical countries. possible from both northern and southern governments. In the mean - However, every official in the Bank, including Robert Zoellick the time there has never been any apology nor debt cancellation for the president, has never answered properly about the World Bank’s fail - Bank’s past operations that created crises and poverty in southern ure in the forestry sector since the 1980s. A lot of evidence showed that countries. The Bank is still collecting money from previous lending the Bank’s overall policies to ‘help’ developing countries in fact though it failed and harmed people and the environment, while con - trapped these countries in debt crises, almost bankrupting some of tinuously preparing to collect more profits from the forest carbon ini - them. It is because of the same old recipe of development: raw materi - tiative. Even through technology transfer, the Bank is preparing to als export – minerals, oil, gas, and of course timber. expand lending, creating more debt and gaining more profit. It was a little bit absurd when the Bank launched its new initiative Another hypocritical thing is that the Bank always avoids talking for forest carbon brokerage (the Forest Carbon Partnership Facility or about the International Finance Corporation’s (IFC) harmful opera - FCPF) in Bali last December. People would think that the Bank had a tions in many parts of the world. The IFC keeps on pouring money very good proposal both for people and, of course, business. In fact, into carbon emissions generating projects such as oil and gas, mining, nobody noticed that the Bank, through its lending and development plantations, and cattle ranches encroaching on tropical forests. policies, has been promoting deforestation in tropical countries like At this point, is the World Bank the hero of the planet? Will the Indonesia. world really give this opportunity to the Bank even though it is part of In the same year that the Bank was preparing the forest carbon ini - the problem in destroying the local environment and the climate? tiative, through the Indonesia Forest Strategy it promoted so called Torry Kuswardono, climate change campaign coordinator, WAHLI Partnership Plantations and prioritised support to the forestry depart - [email protected] ◊ www.eng.walhi.or.id/
World Bank and power: “fatally-dangerous schizophrenia”
Despite calls for the World Bank to support for Tata Power’s planned Iraq: IMF oil law stalled end its lending for fossil fuels in the Mundra coal plant in Gujarat, aftermath of the climate change India. This will be one of the largest Despite intense pressure from Washington, the IMF-supported petroleum law (see conference in Bali in November (see coal-fired carbon emitters in the Update 54, 49) in Iraq shows no sign of being passed, having missed a total of five Update 58) the Bank has continued world. “Just as the UN secretary deadlines between July 2006 to September 2007. The law would create a legal to push oil, gas and coal operations. general declares an international framework for foreign investment in Iraq’s oil sector, facilitating a significant role for NGO Oil Change International emergency created by carbon emis - multinational oil companies under controversial contracts known as production released a report entitled Aiding oil, sions, the IFC announces that it will sharing agreements which could last for up to 30 years. harming the climate . The accompany - use scarce development lending ing database compiles information resources to help finance an enor - During the eighteen month delay, public and parliamentary opposition to the on assistance for oil and gas projects mous coal-fired plant in India”, law in Iraq has grown. A report by Canadian journalist Linda McQuaig charts the from multilateral development Wheeler said in exasperation. He IMF’s involvement in recent political developments in the scramble for Iraq’s oil, banks, bilateral agencies, and export adds “there is no chance – let me and the creation of its hydrocarbons law. “PSAs are .reminiscent of the arrange - credit agencies. At a conservative repeat this: zero chance – of hold - ments that existed between Big Oil and the oil-producing nations for many decades estimate it finds that $61.3 billion ing global carbon emissions within from the early 1900s through the 1960s, when a small consortium of multinational has been given in ‘oil aid’ since 2000. safe limits if the UN continues sub - companies, operated a worldwide oil cartel through which they controlled all The report describes the role that sidising coal-fired power expansion aspects of the international oil market”. the World Bank and other interna - on a massive scale”. He surmises In December the IMF approved a new fifteen month stand-by agreement under tional financial institutions have that “this fatally-dangerous schiz - which Iraq could borrow up to $744 million, though the authorities have said that played in reshaping oil sectors in ophrenia has to end” and urges the this is only “precautionary”. The oil law remains a significant feature in the agree - developing countries and providing World Bank, the Clean ment which states “we will continue our efforts to secure the passage of a compre - development assistance to finance Development Mechanism and hensive hydrocarbon law”. In January Iraq cleared its debts with the IMF with the their operations. It calls for an end other lending institutions to “build early repayment of about $470 million. According to the IMF, the country’s ability to to oil aid on the basis of its contribu - your future on expanding clean repay early was thanks to international reserves accumulated due to high oil prices. tion to climate change, the debt of power as rapidly as possible, or How Iraq figures in big oil’s dreams oil-importing countries, civil con - you won’t have a future”. ◊ www.zcommunications.org/znet/viewArticle/16115 flict, human rights abuses, and If only the IFIs would take his ecosystem destruction. advice. In December the World Red light for the Bank David Wheeler of the Bank-supported West Africa Gas Update 58) was due for approval at blogs.cgdev.org/globaldevelopment/ Washington-based Center for Pipeline (see Update 57) began oper - the beginning of February. ◊ 2008/01/carma_watch_red_light_for_t Global Development describes as ations whilst the Camisea liquid Aiding oil, harming the climate he.php “crazy” the World Bank’s imminent natural gas project in Peru (see ◊ www.endoilaid.org 3 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008
caps and demanded that Fund staff IMF conditionality high, work harder to implement the current conditionality policy and better explain the use of con- effectiveness low ditions. NGO Eurodad concluded its in-depth review of the IEO A report by the IMF’s evaluation arm faulted the Fund’s overuse of structural conditional - report complaining: “the Board only reiterates commitments ity and partially blamed donors for the problem, but civil society critics of conditionality already taken in 2002 when the are not satisfied with the scope of the report or the changes accepted by the Fund. conditionality guidelines were approved.” Structural conditions are IMF- researcher from the University of society groups reject this condition - Evaluation of structural conditionality required economic and political Oslo, to be sceptical about govern- ality architecture, arguing against ◊ www.ieo-imf.org/eval/complete/ reforms such as privatisation of ment ownership of IMF program- cross-conditionality between multi - eval_01032008.html public enterprises, and are different mes: “If conditionality only lateral institutions and donors. IMF’s internal watchdog criticizes than quantitative conditions such achieves minor and short-lived The IEO’s main recommend- continued reliance on structural as inflation targets. The Independent reforms there is all the more reason ations were for a cap on the conditions, Bank Information Center Evaluation Office’s (IEO) January to believe that it is imposed.” number of conditions, the elimin- www.bicusa.org/en/Article.3636.aspx report reviewed all of the Fund’s The IEO found that compliance ation of structural benchmarks and ◊ lending operations between 1995 rates for structural conditionality conditions that do not fall in the The IMF neglects its own conditionality and 2004 and found that IMF were low at 54 per cent. Ambrose Fund’s core areas of expertise, and policies, Eurodad programmes, for both middle- and felt that low compliance “suggests better explanations of the rationale ◊ www.eurodad.org/whatsnew/articles. low-income countries, had an that the IMF is trying to force for conditions. The board rejected aspx?id=1978 average of 17 structural conditions. countries to take more drastic Echoing criticism of past IEO measures than are required for the Staff in black: IMF faces structural adjustment work (see Update 55), Soren realisation of their programme Ambrose from NGO Bank goals … often at the cost of Continued from page 1 Information Center’s Africa office economic growth and spending on statement include: fewer Bank- former West African central bank lamented the limited approach. health and education.” Fund joint documents, more governor Alassane Ouattara – will “Unfortunately, in its evaluation The report found no statistically focussed financial sector assess - likely be the most influential. the IEO does not consider the significant difference in the ments, simplified document The statement is clear that content of the conditions. The number of conditions after the IMF review processes, outsourcing of the efficiency measures combined question of misguided ideology is, approved its new conditionality human resources, and leasing out with voluntary retirement will therefore, left aside… no attempt is guidelines in 2002. It observed that IMF property including its second not be enough and some staff made to gauge the intrusiveness of conditionality “shifted out of headquarters building and apart - will have to be fired. Strauss-Kahn conditions on governments’ privatisation of state-owned enter- ment building. plans to send detailed proposals on latitude in determin-ing their own prises and trade reform toward tax Strauss-Kahn is expecting the income side, based on the economic policy.” policy and administration, public reports from five working groups Crockett report (see Update 55), The report focussed on whether expenditure management, and chaired by department heads and and the expenditure side together the IMF’s conditions were ‘effective’ financial sector reform.” “10 smaller task forces led by to the executive board on 24 at furthering structural reform and The IEO laid part of the blame senior staff” to feed into the final March. That would leave just whether efforts, launched in 2000, for the lack of progress on reducing proposals. He has not announced enough time to prepare resolutions to simplify conditionality (see conditionality at the door-step of plans to publish the final reports for votes by the board of governors Update 22) were successful. The donors. “Fund arrangements were let alone seek public consultation. during the spring meetings in IEO defined effectiveness as used by donors and others as Strauss-Kahn seems to be repeat - April. Get out your black suits. “whether structural conditionality monitoring and signalling mechan - ing the mistakes of his predecessor Leaked documents from the IMF was effective in bringing about isms for other initiatives.” Though in keeping the process secret (see ◊ ifiwatchnet.org/?q=en/node/3955 follow-up structural reforms”. It claiming that the IMF is good at Update 50). Outside the US ◊ ifiwatchnet.org/?q=en/node/3956 found that there was “only a weak this signalling function, the IEO Treasury, his new triumvirate of link” with 40 per cent of reforms questioned whether this was an advisors – Bank of Israel governor Interim work programme of the board stalling and 5 per cent being appropriate role for the Fund’s Stanley Fischer, former US ◊ www.imf.org/external/np/pp/2007/ reversed. This led Benedicte Bull, a lending instruments. Many civil Treasury official Tim Adams, and eng/121407.pdf IMF humiliates Peru to bow out, IMF’s sovereign fund De Rato in the money Bangladeshi officials Turkey to renew? code in the spotlight
The Dhaka-based New Nation newspaper Peru has indicated that it does not plan to With the IMF developing a voluntary code Former IMF managing director Rodrigo de reports in January that the IMF has over- renew its stand-by arrangement with the of conduct for sovereign wealth funds (see Rato, whose June 2007 announcement that stepped its bounds in trying to convince IMF when it expires next year. Peru’s execu - Update 58), senior Chinese official Wei he would resign surprised many (see the government to reform its tax policy. tive director on the IMF board, Javier Silva- Benhua warned that “there should be no Update 57), has taken up posts at large pri - Despite the IMF having no programme Ruete, said “We don’t need loans with con - discrimination in the treatment of sovereign vate sector banking institutions. Lazard, a with Bangladesh after being rebuffed in ditions or strings tied, or with any kind of wealth funds” and stated that China would global investment banking firm, has September (see Update 58, 57), it apparent - restrictions.” Peru has yet to actually borrow be “actively involved” in discussions. The appointed de Rato as senior managing ly wrote its own draft of the country’s tax money from the Fund. Turkey, the Fund’s IMF has already consulted Singapore, director of investment banking working out ordinance for 2008. The newspaper reports: largest borrower, is still debating is next Norway and the United Arab Emirates to of both the Madrid and London offices. “The ‘fully prepared’ draft ordinance made move when its programme expires in May. set benchmarks. In a campaign debate, US Lazard’s CEO cited de Rato’s “relationships the National Board of Revenue high offi - Though opposition parties and unions are presidential candidate Hilary Clinton said of in both the private and public sectors” as cials annoyed as it was sent without asking opposed (see Update 57, 55), president sovereign funds: “We need to have a lot one of the reasons he was hired. Banco for it.” A senior civil servant said “this is Recep Tayyip Erdo an says he values the more control over what they do and how Santander, a Spanish multinational bank, humiliating”. This comes as the IMF board IMF as a provider ğof the signal that Turkey they do it. I’d like to see the World Bank apparently only valued his “knowledge of reaffirmed the need for ownership of eco - has good economic policies. and the IMF begin to impose these rules.” the world economy, his experience and nomic programmes (see above). global vision” as the reasons to have him View full article at: ◊ www.todayszaman.com/tz-web/ on their international advisory board. ◊ nation.ittefaq.com/issues/2008/ detaylar.do?load=detay&link=131400 ◊ brettonwoodsproject.org/swfcode59 01/09/news0709.htm 4 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008
Inside the institutions The IFIs and Islamic finance
There are more than 300 Islamic financial institutions operating in 51 coun - surveillance, coincided with the Fund’s recognition that it needed to be more tries. Their combined assets exceed $250 billion, with an annual growth aware of what was happening in the financial sector in light of crises that were rate between 10 and 15 per cent. The activities of these institutions affect hitting many emerging markets. Fund staff have not yet consulted the board for more than 20 per cent of the world’s population, and in certain countries, endorsement of a particular strategy or policy. Instead work on Islamic finance is they handle more than 20 per cent of financial flows. This provides finan - guided by the same policy that guides all financial sector oversight. cial services access to certain groups that would otherwise be excluded. Like the Bank, the Fund does not have a separate division that handles Islamic finance , but instead incorporates work in this field into existing function - Besides the prohibition of riba (interest), gharar (contractual uncertainty), maisir al activities. Within the monetary and capital markets (MCM) department, about (gambling), and haram industries (such as those related to alcohol), financial 25 people are familiar with the topic and experienced in applying standard institutions must observe other often complex principles to comply with Islamic analysis to Islamic banks. Naturally much of this is concentrated in MCM’s jurisprudence, known as shariah . Middle East and Central Asia division. The World Bank Group’s support for Islamic finance cuts across its institutions. In terms of country level engagement, the IMF is involved in assisting govern - The Bank does not have a specialised unit but individuals across the Bank work ments to set up appropriate regulatory frameworks for handling Islamic banks. in partnership with Islamic financial institutions on specific deals and issues as Standard oversight mechanisms, such as regulating the capital that banks are they arise. To build staff capacity on the issue, there have been a series of lec - required to hold , are hard to apply directly to shariah -compliant banks. The IMF tures on the topic held in the Bank’s Washington headquarters over the last indicates that its work in this area is fast expanding as more countries are inter - three years. In December, the Bank published the first book on risk management ested in improving their surveillance of these banks as they grow in prevalence for Islamic financial institutions. and size. There are at least eight IMF technical assistance projects in this field at The International Finance Corporation (IFC), the Bank’s private sector arm, the current time. In mid-2007, it issued a working paper called Introducing offers equity and debt financing to institutions interested in Islamic finance. In Islamic banks into conventional banking systems. 2007, the IFC provided its first partial credit guarantee that complies with Islamic The Fund has also worked at the global level to facilitate the development of finance rules. In April 2007, Yemen’s Saba Islamic Bank was the first Islamic standards. In 2002 it helped establish the Malaysia-based Islamic Financial bank to join the IFC’s global trade finance programme as an issuing bank. Standards Board (IFSB), which issues global prudential standards and guiding The Multilateral Investment Guarantee Agency (MIGA), the arm of the Bank principles for the Islamic financial industry. The IFSB standards are designed to that issues investment guarantees against political risk, co-organised in 2007 a complement the standards issued by the Basel Committee of the Bank for conference with the Islamic Corporation for the Insurance of Investments and International Settlements which is also an IFSB member. The World Bank, also Export Credit, a member of the Islamic Development Bank Group. The ground - an IFSB member, has developed tools to assess country compliance with the work was laid to enable the agency to begin guaranteeing projects backed by standards. The IMF also works with the Accounting and Auditing Organisation an Islamic financing structure. In January, MIGA announced its first-ever guaran - for Islamic Financial Institutions. tee for shariah -compliant project financing. The $427 million guarantee will support investments into a new container terminal in Djibouti. Risk analysis for Islamic banks While IMF staff have conducted research in the area of Islamic finance as far ◊ publications.worldbank.org/ecommerce/catalog/product?item_id=6694779 back as the mid-1980s, the institution did not commence much work in this area IMF Survey: Islamic banking makes headway until about ten years ago. The start of this work, both technical assistance and ◊ www.imf.org/external/pubs/ft/survey/so/2007/RES0919A.htm Dollar, markets crash: Where is the IMF?
Amid a global financial market dollars and must now pay higher unwanted dollars for SDRs. Harold parenct financial markets and seizure, which the IMF proclaimed dollar prices for their energy. The James, a history professor from instruments, including private equi - was not likely to happen in October, worry is that the dollar may crash as Princeton University, thought that ty funds, hedge funds and sovereign the Fund’s role in tackling the countries diversify their reserves, a the IMF should just manage the wealth funds. decline of the dollar and financial trend the IMF identified in reserve assets of developing coun - Part of the problem is that large market turmoil is being debated. December. Jomo K.S., the UN’s tries that hold unwanted dollars, industrialised countries are unwill - The sharp deterioration of the assistant secretary-general for eco - solving both the dollar problem and ing to give an international agency dollar in late 2007 prompted nomic and social affairs, blamed the worries over sovereign wealth funds jurisdiction to regulate financial renewed concern about global IMF for poor internation - (see page 4). His only markets in their countries. The IMF’s imbalances. Developing countries al macroeconomic coor - caveat: the IMF needs former chief economist Raghuram holding dollars as reserves are dination: “The IMF, the IMF massive governance Rajan noted: “some of the largest fuelling the US current account which should play a has not reform to regain the industrial countries see themselves deficit. Managing global current leading role in this trust of its members. as more sovereign than others, and account imbalances and the mis - regard, has not stepped As 2007 dollar their politicians brook no interfer - aligned exchange rates that may stepped up to the paranoia morphed ence in their own domestic policies, contribute to them is supposed to be mark.” The UN wants up to the into financial market while being fully prepared to use the IMF’s core expertise, but it has multi-year targets and mark fears in early 2008, con - multilateral agencies to intervene in failed to make a dent in the problem. schedules from the cern has shifted. UK the domestic policies of others.” Much time was spent in IMF- major economies now prime minister Gordon UN World Economic Situation and hosted multilateral consultations and fundamental reforms of the Brown called for an IMF that Prospects 2008 press briefing (see Update 54) to unwind these international reserve system later, “should act with the same kind of imbalances. Despite clear IMF including “an officially backed independence as a central bank in a ◊ www.un.org/News/briefings/docs/ advice – reduced deficits in the US, multi-currency reserve system”. national country” and reiterated his 2008/080109_DESA.doc.htm greater domestic demand in China, Fred Bergsten, director of the desire for the IMF to be “an early Gordon Brown’s speech to the Indian flexibility in euro economies, liber - Washington-based Peterson Institute warning system involving regula - Chamber of Commerce alisation on inward foreign invest - for International Economics, resur - tors and supervisors in all countries ◊ www.number10.gov.uk/output/Page ment in Japan, and more domestic rected the idea of an IMF ‘substitu - for financial turbulence affecting the 14323.asp investment in Saudi Arabia – achiev - tion account’, first broached in 1969. global economy.” Angela Merkel, The future of the IMF and World Bank, ing coherent policy changes has This would strengthen the role of the German chancellor, called a Raghuram Rajan proven elusive. Special Drawing Rights (SDRs), the meeting of the heads of five multi - Developing countries, especially IMF-issued unit of currency, by lateral institutions in mid-December. ◊ www.aeaweb.org/annual_mtg_ oil importers, hold their reserves in enabling countries to cash in their She stressed the need for more trans - papers/2008/2008_527.pdf 5 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008
dential oral briefings and docu - Zoellick and corruption: ments” from UN officials, insisted that the announcement of a Kibaki win was correct. UN officials in A new approach? Kenya and New York have denied that they had provided an assess - World Bank president Robert Zoellick’s handling of corruption in India and changes to the anti- ment endorsing a Kibaki win. Bruce lives in a house owned by corruption unit, signal a different approach to the problem from predecessor Paul Wolfowitz. the Kibaki family. Allegations of bias in favour of Kenya’s ruling party make it clear that the Bank’s battle against Kenyan opposition candidate Raila Odinga’s party sent a formal perceived involvement in corruption is far from over. letter of complaint to the World In January, the Bank’s anti-graft unit, reviews by independent agents. Bank announced end January that it Bank, saying that Bruce “seems to the department of institutional Zoellick instructed INT “to make it a would implement all of the recom - believe that a quick fix in favour of integrity (INT), released a review of priority to investigate the findings mendations of the panel which Kibaki is a solution”. Sir Edward five Indian projects dating back to of the implementation review to reviewed the performance of INT. Clay, former British ambassador to 1997, finding evidence of procure - pursue the evidence for legal The Volcker panel (see Update 57), Kenya, said that in his experience ment fraud, corruption and shoddy action.” named after former US Federal the World Bank was “duplicitous” auditing. Agribusiness firm Shortly after the release of the Reserve chairman Paul Volcker, had in its dealings with Kenya. “It Syngenta, the world’s largest chem - report, the head of INT resigned. suggested the creation of an inde - seemed clear they were concerned icals maker BASF, and Germany’s Suzanne Rich Folsom had been pendent advisory board to ensure to protect their budgets and proj - largest drugmaker Bayer, are all appointed by Wolfowitz, and was the accountability of INT. The Bank ects, irrespective of the bad man - implicated in a price-fixing cartel one of the key figures in the storm has said that INT will work more agement by the government of its spotted in Bank-supported anti- of controversy that surrounded his closely with main operations and own people’s resources,” he added. malarial programmes. departure (see Update 56). Many will need to be more transparent The Bank has stood by Bruce, The review was prompted by a Bank staff felt that Wolfowitz had about its policies and practices. insisting the memo was no more 2005 investigation into a reproduc - used Folsom and INT to selectively than one in a series of “snapshots” “Duplicitous” in Kenya tive and child health programme, target staff or programmes in coun - of the situation in Kenya. which found evidence of corrupt tries where it suited US foreign pol - Accusations have been levelled at INT webpage practices by two Indian pharmaceu - icy interests. Bea Edwards of US the Bank that it is too close to the ◊ go.worldbank.org/036LY1EJJ0 tical firms. The firms have since NGO Government Accountability corrupt ruling party of Mwai World Bank’s INT director quits, GAP been debarred by the Bank. Project said: “The Bank and INT Kibaki in Kenya. Amidst wide - ◊ www.whistleblower.org/content/ Unlike his predecessor, Zoellick staff deserve a new director who is spread allegations of vote-rigging press_detail.cfm?press_id=1281 has decided not to suspend financ - truly committed to an anti-corrup - in the recent Kenyan elections ing as a result of the current investi - tion agenda and experienced in con - which led to violence, Bank coun - Kenya: World Bank boss under fire gation. The Bank’s health portfolio ducting investigations and protect - try director Colin Bruce appeared ◊ allafrica.com/stories/ is to receive greater oversight in the ing witnesses.” to side with Kibaki. A leaked 200801101131.html form of audits and performance After Folsom’s resignation, the memo from Bruce, citing “confi - Donor contributions to IDA up use of conditionality and a parallel report by Brussels NGO Eurodad Norway, civil society not satisfied (see Update 58). Benedicte Bull, of the University of Oslo, found: Despite evidence that it has failed to to 16.7 per cent. The US, previously mate change”. UK NGOs were dis - • “a certain ‘slack’ in the application end the practice of forcing policy the largest donor, increased its appointed that their government of the definition to categorise policy reforms on recipient countries, the pledge by 30 per cent to $3.7 billion, had given so much and asked for so conditionalities on the part of the World Bank will collect a record and will see its share rise from 13.8 little by way of reform in return. Phil World Bank”; $41.6 billion for its low-income arm, to 14.7 per cent. Germany increased Bloomer of UK NGO Oxfam said • that the Bank “has not always been the International Development its donation by 18 per cent to $2.2 that “billions of pounds of UK tax - good at allowing ‘policy space’”; and Association or IDA, for the period billion. The list of donors also payers’ money are being handed July 2008 to 2011. The amount is 30 includes first-timers China, Cyprus, over to an institution that still push - • that Norway should advise the per cent higher than the last replen - Egypt and the three Baltic states. es some policies on poor countries Bank to stop ‘bundling’ together crit - ishment of $32.1 billion in 2005. The Also for the first time, two private that destroy development opportu - ical and non-critical conditions. total includes a 42 per cent increase sector companies – Japanese banks nities for poor people.” The final IDA report, which will in support from donor governments whose identity can not be revealed The only European government include the all-important matrix of to $25.1 billion. until the process is complete – made which took its responsibility for ‘monitorable indicators’ is sched - The Bank’s contribution of $16.5 pledges to IDA. The banks’ money reform of the Bank seriously was uled to be discussed by the board billion is made up of $6 billion in may be processed before June 2008, Norway, which announced that it end February. NGOs will be hop - donor country money replacing can - so will count under the previous would be withholding 25 per cent, ing that a silver lining may yet be celled debt, repayments of past funding round. The Bank’s board or $4.2 million, of a planned increase found in the adoption of recom - loans to IDA for debt that was not was insistent that before any private in financial support to the Bank. mendations for an independent cancelled, and a doubling of the money could go to IDA 15, a frame - Norway’s deputy minister of devel - review of the use of conditionality Bank’s ‘own’ contribution to $3.5 bil - work needed to be devised. The opment Håkon Arald Gundersen and stronger commitment to the lion. The latter amount comes equal - paper on this is being written by the said “We are not completely satis - use of poverty and social impact ly from the Bank’s middle-income concessional finance unit and is due fied with the progress the World assessment. and private sector arms. to go to the board end March. Bank has made in living up to its Norway withholds World Bank funding The last in a series of donor meet - Over 100 CSOs from across principles on conditionality. Because ◊ english.nca.no/article/view/7402/ ings was held in Berlin in December. Europe had called on their govern - of this we have chosen to reduce the 1/449 Britain donated $4.3 billion, an ments to consider “redirecting fund - increase in support.” increase of nearly 50 per cent over ing away from the Bank through Norway commissioned an inde - Analysis of World Bank and Eurodad its last contribution, making it the other mechanisms which respect pendent researcher to examine the reports, Benedicte Bull largest single donor. As a result, the country ownership and take the nec - claims and counterclaims made by ◊ ifiwatchnet.org/?q=en/node/3937 UK share of the fund grew from 13.2 essary leadership in addressing cli - the World Bank in its report on the 6 BRETTON WOODS UPDATE NUMBER 59 – JANUARY / FEBRUARY 2008
will show more detailed data for New figures cast shadow over food, clothing, health and other items, though Vogel is “not expect - Bank poverty reduction claims ing any significant revisions result - ing from the additional analysis”. A Preliminary recalculations of global economic output excluding differences in domestic prices and separate exercise to estimate pover - ty levels is to be published “at a later currencies, released by the World Bank in mid-December, may undermine the much-trumpeted time to be determined”. claims that globalisation has reduced the number of people living in extreme poverty. Why is this so important? Simply put, it determines the num - The aim of the World Bank-led proper, in which three-quarters of mainly in urban areas. ber of people who fall below the International Comparison Program China’s population live. While newspaper headlines poverty threshold and therefore the (ICP) is to provide more accurate Unsurprisingly, the survey have fixated on the meaning of the ‘effectiveness’ of poverty alleviation comparative data on economic found that prices ‘in China’ were new calculations for the size of the policies. Based on this figure the growth based on the analysis of pur - much higher than had been previ - Chinese and Indian economies rela - Bank pronounces success or failure chasing power. Measuring the ously guess-timated, and therefore tive to the US and Japan, the devel - on the first Millennium economies of India or Mexico in US the purchasing power of the yuan opment story lies in what these Development Goal to “reduce by dollars at market exchange rates will was much lower. Consequently, the numbers will mean for assessing the half the proportion of people living seriously underestimate their ‘val - Bank shrank its estimate of China’s Bank’s poverty reduction efforts. on less than a dollar a day”. ue’. To capture this difference, price 2005 output (in PPP terms) by a A number of economists have According to the Bank’s previ - surveys of a broadly equivalent bun - remarkable 40 per cent - to $5.3 tril - consistently slated the Bank’s ous estimates, the global number of dle of goods and services are carried lion from $8.8 trillion. Similar calcu - approach to measuring poverty (see poor people fell by approximately out in each country to calculate the lations in India resulted in a revised Update 29). Columbia University 150 million between 1990 and 1999 real purchasing power of a unit of estimate of India’s 2005 economist Sanjay Reddy argues (the proportion falling from 28 to 22 currency. This is used to calculate a output of $2.3 trillion that the Bank’s use of a $1 per cent). This was due to some 150 purchasing power parity (PPP) from $3.4 trillion. not per day international million people supposedly leaving exchange rate in order to convert the Eswar poverty line is not the ranks of the poor in China. economic output into a common Prasad, former updated meaningful because Outside of China, reductions in the measure (US dollars). China division or more accurate it “does not corre - number of poor in other Asian The first such survey was con - chief at the spond to the real cost nations were offset by increases in ducted in 1970, and the last major IMF and now but of achieving basic Eastern Europe, Central Asia, Latin one in 1993. The Chinese govern - at Cornell differently human require - America and especially Sub-Saharan ment declined to participate in any University, ments”. Reddy con - Africa. So any major change in the of them until 2005. The government warned: “The distorted cludes therefore that Chinese picture could turn a net of India participated in 1985, but notion that China the new poverty esti - positive picture into a negative one. declined to participate subsequently is suddenly a much mates for India and China The attention generated by the until 2005. As a result, past figures smaller part of the world “cannot be considered ‘updat - ICP controversy should make it for the all-important Chinese and economy should be taken with a ed’ or ‘more accurate’, but different - clear that it is time to develop a Indian economies had a large ele - huge degree of caution.” Some ana - ly distorted”. measure of extreme poverty which ment of guesswork, muddying the lysts have pointed out that it is in Reddy and fellow researcher at is based on the real cost of meeting global picture. China’s political interest both to Columbia Thomas Pogge have pro - basic human needs. Until then, there For China, the 2005 survey used have its currency be viewed as less posed an alternative methodology: will continue to be uncertainty figures from the Chinese National undervalued, and to understate the the use of a set of common criteria about whether poverty reduction Bureau of Statistics, which gathered size of its economy. related to the possession of local efforts are going forwards or back - price data in eleven large, mostly Fred Vogel, who oversaw the resources sufficient to achieve basic wards. prosperous Chinese cities. The data ICP for the Bank, said that the China human requirements. This approach International Comparison Program collectors selected goods and serv - calculation “depends on a basic remains untested “despite being ◊ go.worldbank.org/UI22NH9ME0 ices in line with the ICP prescription assumption that prices from the wholly feasible”, they say. Analysis of World Bank poverty estimates that they be “internationally compa - rural areas of the 11 administrative The Bank itself says in the report by Sanjay Reddy and Thomas Pogge rable”. Prices in rural areas at the areas are representative of rural that PPPs “may not reflect the ◊ www.socialanalysis.org fringes of the 11 cities were sur - China.” He defended this by noting expenditure patterns of the poor”. A veyed, but not from rural areas that most countries measure prices second report due out end February
UK to get new Bank Chinese tipped as Bank Video of resistance to Call to respect Bolivian board post chief economist World Bank ICSID withdrawal
The British government announced in Chinese relations with the Bank have been The World Bank Campaign Europe in con - More than 800 citizens groups from 59 January that it will be ending the practice cool since the resignation of deputy man - junction with the Permanent Peoples’ countries on every continent presented a of having a single executive director for aging director Shengman Zhang end 2005. Tribunal held a public hearing on the petition to World Bank president Robert both the World Bank and the IMF. Having Now with its first contribution to IDA (see World Bank in October (see Update 57). A Zoellick in January, demanding that the gifted the World Bank a record increase in page 6) relations appear to be on the new video presents the testimonies reveal - Bank respect Bolivia’s decision to withdraw financial support (see page 6), the British mend. At the time of publication, Lin Yifu, or ing what happens to people and the envi - from the International Centre for the want more capacity to monitor how their Justin Lin, was expected to be appointed as ronment as a result of economic policy Settlement of Investment Disputes (ICSID). money is spent. They will need it judging the Bank’s chief economist, after the post conditions attached to World Bank loans Last May, the government of Bolivia by the quality of the latest report on UK had lain vacant for nearly four months. Lin and Bank-financed oil and gas projects. became the first country in the world to activities at the World Bank published by is head of the China Centre for Economic The DVD is in English, French and Spanish, withdraw from ICSID, citing the court’s the Department for International Research at Beijing University and an with subtitles in English, German, Spanish, record of favouring corporate interests over Development (DfID). The Bretton Woods adviser to the central government. Lin was French, Dutch and Italian. Free copies are the public good (see Update 56). That court Project has described the report as “weak, born in Taiwan, but defected to China in available from co-organisers Friends of the is now refusing to respect the Bolivian gov - unaccountable and late”. Once again, the 1979. Lin holds a master’s degree in marxist Earth International. ernment’s actions and is allowing a case report made no mention of failed projects political economy from the Beijing brought by a European telecommunica - World vs Bank video, IFIwatch.tv or lessons learned from the Bank's evalua - University and a PhD in economics from tions company to proceed (see Update 58). tion and complaint bodies. the neoliberal University of Chicago. ◊ ifiwatch.tv/world-vs-bank-14 [email protected] ◊ www.ips-dc.org/reports/080115- ◊ brettonwoodsproject.org/dfidwb07 boliviapetition-en.pdf 7 BRETTON WOODS UPDATE Bankspeak of the year 2007 Recommended resources 2007
South Asia, Russia and Latin America in Award for cynicism PAPERS the late 90s. The IFIs do not get off lightly. As an Inspection Panel report was about to slate the Bank for failing to Untying the knots: How the World Bank ◊ www.networkideas.org/feathm/jul notice that indigenous peoples lived in the forests of the Democratic is failing to deliver real change on 2007/ft17_Bangkok_Conference.htm Republic of Congo, Bank staff were all smiles when a pygmy delegation conditionality; Eurodad from those same forests magically appeared in Washington in October: NGO goes head-to-head with the Bank BOOKS using the Bank’s own database of “…the World Bank is interested in strengthening its partnership with conditions. Norway thought Eurodad land - Transnational law and local struggles: indigenous peoples, moving forward in a constructive, problem-solving ed several punches. Mining, communities and the World Bank; mode. keen to promote both participation of indigenous people in key ◊ www.eurodad.org/aid/report. David Szablowski decision-making activities and programmes that support local communi - aspx?id=130&item=01804 A comprehensive overview of the World ties, using its full range of social development instruments and policies. It Bank’s safeguard policy regime. It finds that Seeing “RED”? “Avoided deforestation” and local actors are often treated as passive supports government and other stakeholders in improving the lives of the rights of Indigenous Peoples and local subjects, excluded from decision-making. extremely poor, disadvantaged people including pygmies and recognises communities; Forest Peoples Programme the need for a strong consultation processes with such groups…” The report finds that 'avoided deforestation' Hart Publishing may result in the perpetuation of discredited ISBN-13: 978-1-84113-639-4 Bank models of forest ‘development’, such Ten years after: Revisiting the Asian Award for the longest way to say nothing as large-scale plantation forestry. financial crisis; edited by Bhumika Muchhala Former IMF managing-director Rodrigo de Rato explains to African finance ◊ www.forestpeoples.org/documents/ A collection of essays that examines what ministers why, after nearly three years on the official agenda, their countries ifi_igo/avoided_deforestation_red_jun07 we have, and should have, learned from the were (and still are) getting nothing in IMF governance reform: _eng.pdf financial crises of the late 1990s and offers both warnings and policy recommendations The MD was “committed to bringing forward a package of reforms that Transparency at the IMF: A guide for civil to deal with financial globalisation. society; Global Transparency Initiative could command the broad support of the membership. … To this end, both Woodrow Wilson Center A practical guide for civil society about the sides welcomed the opportunity to exchange views on these issues. The MD ISBN: 1-933549-24-6 valuable information they can get from the and the ministers agreed that a collaborative effort involving the entire Fund and what further information they Poverty alleviation and human membership will be needed to garner the necessary support for should demand be made available. development in the twenty-first century: fundamental reform and to address the concerns raised by African ◊ www.ifitransparency.org/doc/ The role of the World Bank; edited by members.” Transparency_IMF_GTI.pdf Catherine Weaver and Susan Park A collection of academic essays on the Building scrutiny of the World Bank and World Bank looking at: the Bank’s knowl - IMF: A toolkit for legislators and those who edge role, the Multi-Country AIDS Program, BWP thanks readers for support work with them; World Development social and sustainable development. Movement Following our appeal for assistance in Update 58, we would like to thank Global Governance , Vol 13 No 4 A useful resource for both parliamentarians those readers who made donations. Your generosity is crucial for the and civil society groups that work on scruti - Lynne Rienner Publishers survival of the Project. If you have not already done so, but would still like ny of financing agreements with the IFIs. The World Bank: Development, poverty, to make a contribution, please donate via our website where you can use 59 ◊ www.wdm.org.uk/resources/ hegemony; edited by David Moore a credit card or set up a direct debit . reports/debt/toolkitforlegislators19012 A wide range of scholars and activists www.brettonwoodsproject.org/donate 007.pdf examine the efforts of the Bank to con - ◊ struct a path through poverty and power, The second generation Poverty Reduction and “ask if reform of the Bank is possible Special issue coming up next! Strategy Papers: Burkina Faso, Mozambique, or rejection probable." Tanzania and Uganda; AFRODAD University of KwaZulu-Natal Press For the next issue of the Bretton Woods Update we launch a new trial Country case studies examine the extent to ISBN: 1869141008 initiative to bring you broader insights into the international financial which the second generation PRSPs are dif - institutions. Update 60, which will be available in advance of the spring ferent from the first in terms of process and meetings in April, will be 50 per cent longer and will be produced in content. ELECTRONIC RESOURCES conjunction with colleagues at NGOs Afrodad, Instituto del Tercer Mundo, ◊ www.afrodad.org/index.php?option= World Bank President Eurodad and Bank Information Center. We hope that readers will com_content&task=view&id=58&Itemid This mouse that roared is credited by some appreciate the additional depth and regional variety that their contributions =101 (even within the Bank) with helping to bring will make, and look forward to your comments. Does the IMF constrain health spending down Paul Wolfowitz. The site carried all in poor countries?; Center for Global the latest news, gossip and insider analysis Development of Wolfowitz, his girlfriend and his cronies. An independent panel of experts in the Honourable mention goes to Wolfowitz health field conclude that the IMF does Resign , a site run by disgruntled Bank staff. unduly constrain spending on health and ◊ www.worldbankpresident.org other social services by requiring overly ◊ wolfowitzmustresign.blogspot.com strict macroeconomic policies. IFIwatch.tv ◊ www.cgdev.org/doc/IMF/IMF_ Published by Bretton Woods Project Pioneering the latest technology for distrib - Critical voices on the World Bank and IMF Report.pdf uting social justice video online, IFIwatch.tv Investigation report on World Bank support is a superb resource for anyone interested No permission needed to reproduce articles. Please pass to colleagues interested in for forestry reforms in the Democratic in what multilateral bodies are doing with the Bank and Fund, and let us know of other groups interested in getting the Update. Republic of Congo; Inspection Panel our money, our neighbours, and our planet. The Update is available in print, on the web and by e-mail. A scathing report finds that the Bank has ◊ www.ifiwatch.tv Subscriptions: www.brettonwoodsproject.org/subs violated its own safeguard policies, includ - Spanish: www.brettonwoodsproject.org/es/boletin ing those protecting indigenous peoples. It People’s tribunals on the World Bank Indian civil society organised a forum for should provoke a wholesale re-think of the Bretton Woods Project people who have faced the impact of proj - Bank’s approach to forestry. Hamlyn House, Macdonald Road, London N19 5PG, UK ects and policies funded or promoted by ◊ www.worldbank.org/inspectionpanel the World Bank Group. European groups +44 (0)20 7561 7610 +44 (0)20 7272 0899 Conference papers from A decade after: followed suit with a similar forum directed [email protected] Recovery and adjustment since the East at European governments considering their www.brettonwoodsproject.org Asian crisis; July 2007, Bangkok, Network financial support of the Bank. IDEAS ◊ www.worldbanktribunal.org A publication of an independent non-governmental organisation, supported A gathering of heterodox economists pre - ◊ www.worldbankcampaigneurope.org sented papers looking at the causes of by a network of UK NGOs, the C.S. Mott Foundation, Oxfam Novib and the financial crises in East, Southeast and Swedish Society for Nature Conservation.
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