IFIs Latin American Monitor - August, 2007


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


* 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.


-> DSK's visit to Argentina
Dominique Strauss-Kahn, the French candidate to be Rato successor at the IMF, was in Latin America in order to increase his support to become the new IMF Managing Director. Argentina was one of the countries chosen, where was probably the IMF's biggest catastrophe. There, the government didn't offer an outright endorsement but they came very close.
Source: IFIs Latin American Monitor

-> 7th Meeting of Rede Brazil: BNDES as another focal point
In this last stage, the members of Rede Brazil pointed to the need of monitoring the activities of the National Bank for Economic and Social Development (BNDES), taking into account that is has turned into an institution that shows a high pace of increase in terms of financing capacity as well as a growing influence on the economic and social policies both of Brazil and the region. In line with this new goal, Rede Brazil submitted a document to the president of BNDES including proposals for the application of social and environmental criteria in the Bank’s operations.
Source: IFIs Latin American Monitor

-> Benefits of proposed IMF reforms questioned
The current proposals for reform at the International Monetary Fund (IMF) will not bring about benefits for the majority of its developing-country members, nor will they restore the Fund’s credibility or improve its efficacy as a multilateral financial institution, according to Hector Torres, member of the Group of 24 and an Alternate Executive Director of the IMF.
Source: Third World Network

-> Old and new claims: Argentina in the dock at ICSID
Twenty-seven claims filed against Argentina are still pending at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). After the 2001 economic and financial crisis, numerous international companies resorted to this World Bank body to file claims for the alleged violation of an investment protection treaty. In 2007, more than five years after the crisis, ICSID continues to rule and receive claims on this matter.
Source: IFIs Latin American Monitor


* Brazil vs. Bank of the South
Since the month of June, when the Bank of the South was about to be launched at the Summit of South American Presidents in Asuncion, we started to see a slow-down. Some governments have started to dig in their heels to curb the drive launched first by Chavez in 2005, then by Chavez and Kirchner in 2006 and finally by Correa in 2007, who spoke of broadening the concept of the Bank of the South to one of regional financial architecture. The greatest resistance of the Brazilian government is that they would like the Bank of the South to finance the initiative for Integration of Regional Infrastructure in South America (IIRSA). That is "to put the cart before the donkey".
Source: ALAI

* For an integral audit of public indebtedness - Ecuador at the cross-roads
Indebtedness in developing countries presents a specific feature which has to be set at the heart of public debate: it results from an ongoing policy of deprivation and subordination of these countries by more industrialised countries, transnational corporations (TNCs) and international financial institutions, with the elites of the South aiding and abetting. Like other indebted countries in the third world, Ecuador faces an over-indebtedness. As a consequence, Ecuador is the Latin American country devoting the highest part of its budget to paying back its debt, which has an impact on public expenditure, notably health and education.
Source: CADTM

* IMF surveillance decision hits developing countries' policy space
Last June, after over a year of review, the International Monetary Fund (IMF) modified its main guidelines on the implementation of Article IV of its Articles of Agreement. The guidelines, issued originally in 1977, regulated the Fund's role in exercising surveillance over the exchange rate policies of member countries. It was probably not a surprise that the recent revision of the rules that guide its surveillance of members' exchange rate policies reduces policy space for developing countries.
Source: SUNS

* Colombia and the new international financial architecture. North or South?
The theory that institutions such as the World Bank and International Monetary Fund are currently undergoing different types of crisis has even been accepted by their own policy supporters. The Colombian economic policy has been characterised so far by the disciplined implementation of policies "recommended" by multilateral institutions. Colombia may well remain outside the dynamics of Latin America, bearing the cost of staying tied to economic policies and institutions that have already evidenced their inability to solve their own crises.
Source: CIASE

* The IDB realignment - Discontent, confusion, non-transparency: how to become relevant in Latin America
Details of the realignment leaked throughout 2007, spurring anxiety inside and outside the Bank. Civil society organizations expressed concern over weakened social and environmental safeguards and the Bank’s commitment to sustainability. Bank staff in turn voiced worries over job security. Fears peaked on April 12, 2007, when the staff received the first email indicating where they would be reassigned, or "mapped". The Staff responded by describing President Moreno’s realignment as generating more "discontent, confusion and frustration than clarification".
Source: Bank Information Center


* Selecting the IMF’s next Managing Director in an open, transparent, and merit-based process (pdf format)

* Regional workshop on the illegitimacy of debt, strengthening resistance and alternatives

*** 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


-> IMF/WB Annual Meetings on IFIwatchnet
The World Bank (WB) and the International Monetary Fund (IMF) Annual Meetings are coming soon! This year the meetings will be from October 20 to 22 in Washington D.C.. Civil society groups are organising events from October 18. Check the IFIwatchnet coverage and keep yourself informed with day to day updates and analysis!

*** NGOs directory


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