IFIs Latin American Monitor - July, 2007


-> 2. Special coverage
-> 3. News
-> 4. Reports
-> 5. Statements
-> 6. Campaigns
-> 7. Special websites


* Programmes and loans designed and controlled by IFIs play a powerful role in shaping the economic trajectories of many countries in the Global South. We all have something to say on these issues. We invite you to add your comments and opinions in all the news and reports published on our website. Your opinion is important to us!


-> IFIwatchnet weblog: IMF leadership selection process
Keep informed with frequent updates and analysis on the process.


-> Ecuador sets up an external debt audit commission
In a historical international event, the Ecuadorian government launched a new public debt audit commission. This is an unprecedented event since the task will be given full State support and involvement. The decision is part of a debt policy which has been implemented by Rafael Correa’s administration since the beginning of his presidential term in January 2007.
Source: IFIs Latin American Monitor

-> The World Bank issues data on governance
In the last World Bank report, "Governance Matters, 2007: Worldwide Governance Indicators 1996-2006", the institution shows data on governance in 212 countries all over the world. Although the report fails to show data in terms of "the most corrupt countries", nor is it particularly focused in this sense, the alphabetical list allows to sort countries according to this indicator. The publication of this report brought reactions both within and outside the Bank, particularly from officials in Argentina, Mexico, China and Russia.
Source: IFIs Latin American Monitor

-> IDB warns about debt risks
In a report that analyses the total public debt in Latin America and the Caribbean, IDB recommends these countries to focus on sovereign debt structure in order to avoid future economic crises. From a methodological point of view, this report underlines the importance of analysing the total public debt in order not to exclusively focus on external debt, and thus reach the wrong conclusion that public debt has been decreasing in Latin America, when in fact there has only been a change in its composition.
Source: IFIs Latin American Monitor

-> IDB and its Trade Finance Facilitation Program
The State Bank of Chile, which has as a mission the promotion of universal bank access to all Chileans, has signed an agreement with the Inter-American Development Bank (IDB), aimed at strengthening foreign trade with countries of Latin America and the Caribbean. Through this agreement, the State Bank obtains the quality of a confirming bank within the Trade Finance Facilitation Program (TFFP).
Source: Finance and Trade Hemisphere Network

-> "That position is ours": Another European to head the IMF
Just 12 days after IMF managing director Rodrigo de Rato made a surprise announcement that he would resign in October, European countries have put forward a leading member of the French socialist party and former finance minister Dominique Strauss-Kahn to replace him. It is the second lost opportunity in as many months for reform of the anachronistic governance of the international financial institutions.
Source: Bretton Woods Project


* Why do we propose an audit?
The Citizen Commission on Public External and Internal Debt Auditing (CCADE, in Spanish) was created in Uruguay for the purpose of promoting the participation of informed and responsible citizens in an issue of huge significance for the country; analizing the legitimacy of debt and the corruption surrounding indebtedness; investigating whether the borrowed funds were invested or not and into which; studying the amounts already paid by way of interests, etc. The Commission is made up of civil society organizations and independent citizens.
Source: Citizen Commission on Public External and Internal Debt Auditing

* Globalization bad for workers (but not too much...) finds IMF
As reported by the press, it seems as though the IMF research is finally catching up with some of the negative aspects of free trade and globalization, especially when it comes to unskilled workers. However, the IMF still manages to put a positive spin into these findings.
Source: Center of Concern

* The temple of capital is cracking
The World Bank was created to supply the capital necessary for the reconstruction of Europe and with the mandate of reducing poverty in other parts of the world with accessible loans. In the end, Europe was reconstructed with the Marshall Plan and in what concerns the World Bank loans, the attached conditions increase poverty and income disparity in the Third World. The Bank did have its boom with the external debt of developing countries, but the paradox is that the more they repay their debts, the more it sinks in bankruptcy.
Source: Ventana Global

* Bank of the South: financial independence for South America
Different from Europe and the United States, the countries of Latin America, do not have sufficient tax earnings available to guarantee the enjoyment of social rights for their populations. Our countries base the sustainability of their budgets on the generation of fiscal surpluses to obtain sufficient recourses to pay in service of debt. This situation makes us realize the necessity of independent and sovereign financing in the region.
Source: Finance and Trade Hemisphere Network

* Gender justice: a citizen's guide to gender accountability at International Financial Institutions
Although nearly all the International Financial Institutions (IFIs) have committed to promote gender equality, Gender Action research underlines that IFIs projects often ignore gender inequality and increase poverty, prostitution, and HIV/AIDS, particularly among women and girls. Most IFIs have taken inadequate steps to try to address these concerns (pdf format).
Source: Gender Action


* CADTM press release on IMF leadership selection process

*** All Statements


-> Join the week of Global Action Against Debt and IFIs
The debt problem is not over, despite all the promises and schemes offered by lending governments and international financial institutions. Several civil society organizations are planning a week of various forms of citizen’s actions and mobilizations worldwide from October 14 to 21, 2007.

-> Parliamentarians’ Declaration for shared responsibility in sovereign lending
This declararation recognises that democratically elected parliamentarians have a right and duty to scrutinise the actions of their governments as either lenders or borrowers. Parliamentarians who sign the declaration commit to support further research into the concept of illegitimate debt as well as initiate parliamentary audits of existing claims and debts.

*** All Campaigns


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