IFIs Latin American Monitor - October, 2009


-> 1. RSS Feed
-> 2. Events
-> 3. Information resources: Social Watch Report 2009
-> 4. News: IMF and Capital Controls; New financial architecture in UNASUR; International Meeting in Guayaquil, Ecuador
-> 5. Reports: SELA report on financial and monetary cooperation in LAC
-> 6. Statements: Financial Transaction Tax
-> 7. NGOs

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->World Bank/IMF Annual Meetings - Istanbul, October 6-7, 2009
The 2009 World Bank/IMF Annual Meetings took place on October 6-7, 2009, at the Istanbul Congress Center in Istanbul, Turkey. This year the attention was focused on economic and financial crisis and governance reform, among others hot issues.


->Social investment is the key says Social Watch report
Robust social investment programs should be enacted in order to effectively stimulate the global economy and mitigate the impacts of the financial crisis on workers, women and the poor, concludes the international civil society network Social Watch in its 2009 Report. This will not only satisfy criteria of social justice but also is sound economic policy, states the Report, titled People First.


->The IMF needs fresh thinking on capital controls
The IMF has said and done all the right things since the crisis. But now Strauss-Kahn is throwing cold water on proposals to tax international flows of “hot money.” The occasion was Brazil’s decision to impose a 2% tax on short-term capital inflows to prevent a speculative bubble and further appreciation of its currency. When asked about the role of capital controls, Strauss-Kahn said he was not wedded to any rigid ideology on the subject. Nonetheless, according to the Financial Times which reported the IMF chief’s views, “the IMF would not recommend them as a standard prescription either – as they carried costs and were usually ineffective.” Unfortunately, this makes the new IMF sound too much like the old one.
Source: Project Syndicate

->Organizations and social movements met in Guayaquil 10 years after the Andean Jubilees
The International Meeting "Economic and social impacts of the crisis and debt in the South, analysis and proposals towards a new model of Latin American development" took place in Guayaquil, Ecuador, from 4 to 6 November. This event was organized by Jubilee 2000 Guayaquil Network together with other national, regional and international organizations, on the occasion of the 10-year anniversary of the Andean Jubilees, Jubilee 2000 Guayaquil Network, Bolivian Jubilee Foundation and Peruvian Jubilee Network.
Source: IFIs Latin American Monitor

->World Bank recapitalization conditioned on reforms
During the Istanbul Annual Meetings, World Bank President Robert Zoellick outlined a capital increase request for between $4 and $11 billion in paid-in capital. The primary rationale is that lending $100 billion between FY09-11 (as encouraged by G-20) will stretch the balance sheet to the limit. Projected new commitments by IBRD between FY09-12 total $136 billion, or about $34 billion per year or 2-3 times average IBRD lending. Not having a General Capital Increase (GCI) would limit IBRD lending to about $10 billion in the coming years, compared to historical annual average of about $19 billion. The demand analysis on which the Bank’s GCI is based is a minimum post-crisis capacity to lending $15 billion per year.
Source: Bank Information Center

->IDB capital increase subjected to consultation
On November 4 and 5, the Interamerican Development Bank (IDB) celebrates in Guadalajara a consultation with civil society to evaluate the Bank’s capital increase request. The Global Capital Increase (GCI) proposal for $US 180 billion is the ninth and by far the largest in IDB history –more than four times the volume of any prior GCI. Based on actual lending trends, the proposed GCI would triple the level of annual IDB lending to Latin America. This massive capital increase proposal follows an embarrassing loss of almost $1.9 billion in 2008.
Source: Multiple

->Brazil’s dangerous romance with the old institutions
From 12 to 18 October organizations from more than fifty countries of the South-North campaign on illegitimate debt carried out several actions in the framework of the Global Week of Action against Debt and the Multilateral Financial Institutions (MFIs). One of the goals of this year’s mobilization is to draw attention to the false solutions that have been identified as ways out of the current global crisis. The decisions announced at the annual meeting of the IMF and the World Bank, on 6-7 October in Turkey, reinforce this concern to the extent that the proposals agreed upon, now with more complicity from Brazil, are aimed at a return of the MFIs’ intervention in national economies and a new cycle of illegitimate debt in the South.
Source: Rede Brasil

->The construction of a new regional financial architecture in UNASUR
In September, the Ministry for Coordination of Economic Policy and the Technical Committee for the creation of a New Financial Architecture of the Ecuadorian Presidency organized the "Latin American Summit on Mechanisms for Cooperation and Trade, Financial and Monetary Integration" in Quito. The meeting was attended by the different actors from civil society and academia in South America, including the HAS – Hemispheric Social Alliance, to discuss the effects of the financial crisis in the region and establish a dialogue between the concerned countries of UNASUR.
Source: IGTN


->SELA proposes areas of financial and monetary cooperation in Latin America and the Caribbean
The Permanent Secretariat of the Latin American and Caribbean Economic System (SELA) has recently launched the report “Experiences of monetary and financial cooperation in Latin America and the Caribbean. Critical appraisal and proposal for action at regional level.” This paper aims to examine the experiences of monetary and financial cooperation at regional level and to identify international and regional conditions to advance cooperation in this area in order to move towards the establishment of a regional financial architecture in Latin America and the Caribbean.
Source: SELA

->Crisis forces deep reforms to the global financial architecture, ECLAC
The current crisis has evidenced the urgency of deep reforms to the international financial architecture and regulatory and supervisory systems so as to ensure greater global stability, said Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC). In her presentation, titled "In search of solutions to the financial crisis: measures taken and future challenges", Bárcena stated that the effects of the current financial crisis will not be only circumstantial, but will also prompt a dynamic of growth and articulation of economic, financial and commercial relations towards what has recently begun to be called the "new normality" in the world economy.
Source: ECLAC


->Letter to IMF Managing Director from over 90 groups re. civil society participation in IMF study on Financial Transactions Taxes

->Letter to US Government on IMF study on financial sector contribution towards crisis resolution - Center of Concern

->Online petition for debt moratorium amid the economic and climate crises

7. NGOs

->Rethinking Finance
Rethinking finance is a website of several international civil society organisations and individuals that put forward alternative ideas and analyses on the global financial crisis.

* IFIs Monitor is an active member of IFIwatchnet. See http://www.ifiwatchnet.org

*** NGOs directory


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