Bretton Woods Update No. 67 (September/October 2009)

Bretton Woods Update No. 67 (September/October 2009)

Breaking the chains?: IFC backs out of palm oil
by Hadiru Mahdi
Violations of the IFC's performance standards in a palm oil project in Indonesia could have far reaching effects, drawing attention to the IFC's responsibility for the impact of whole supply chains as a review of their social and environmental standards gets under way.
http://brettonwoodsproject.org/palmoil67

G20 versus UN: the battle continues
The future of international economic governance and financial reform is still being debated separately at the United Nations and the G20, but little progress is being made.
http://brettonwoodsproject.org/gtwentyun67

Jockeying for position over World Bank's role as climate talks near
by Ama Marston
With roughly two months until the Copenhagen climate negotiations commence, questions loom about quantities of climate finance and which institutions will channel it, leaving speculation about the role the World Bank will end up playing
http://brettonwoodsproject.org/climate67

Rebranding hides little change for IMF lending
The IMF has launched a rebranding exercise for all of its lending to low-income countries, and while the new facilities will deliver more resources, the money seems destined to come with the usual damaging conditionality attached.
http://brettonwoodsproject.org/imflics67

Flexibility or seeds of new crisis?: IFIs debt framework revised
by Gail Hurley
A flurry of papers by the IFIs, UNCTAD and NGOs raise concerns over renewed debt difficulties in poor countries just as the IFI's complete a review of the debt sustainability framework to allow more borrowing.
http://brettonwoodsproject.org/debt67

The Byzantine governance of the IFIs
by Roberto Bissio
On August 28, in Bariloche, Argentina, the presidents of twelve South American countries met to discuss a life-or-death issue for their newly created Union of South American Nations (Unasur): the Colombian-US agreement allowing for extra-regional military to set up a chain of bases very close to the heart of the Amazon.
http://brettonwoodsproject.org/comment67

Asia debates moving away from IMF and West
by Bhumika Muchhala
At a conference in Penang, Malaysia in August, officials, academic and members of civil society from the Asian region sought to chart a way towards greater regional cooperation that would insulate them from the IMF and financial crises.
http://brettonwoodsproject.org/penang67

Bank's approach to agriculture under fire
by Rachel Whitworth
The World Bank and the IFC have committed to increase funding to agriculture to help tackle the food crisis, but their enthusiasm for agribusiness has been questioned by academics who suggest the benefits will not reach the hungry.
http://brettonwoodsproject.org/agric67

Business as usual?: The World Bank's new energy strategy
by Jakob Kane Loukas
The World Bank's planned energy strategy review focusses on energy access for the poor and environmental sustainability, but NGOs fear it will justify continued fossil fuel finance.
http://brettonwoodsproject.org/energy67

AT ISSUE: Dollars, devaluations and depressions
The international monetary framework which emerged after the collapse of the Bretton Woods system in the 1970s has proved volatile, damaging and prone to crises. It is time for a fundamental redesign and the introduction of a global reserve currency, to help stabilise international exchange rates, smooth commodity prices, promote international economic cooperation, and prevent future financial crises.
http://brettonwoodsproject.org/reservecurrency67

Good cop, bad cop? : IMF in Honduras, Sri Lanka
There has been significant concern about IMF programmes in Honduras, where the IMF has not made clear whether it will deal with coup leaders who seized power from the elected president, and in Sri Lanka due to concern over allegations that the government is abusing the human rights of hundreds of thousands of Tamils.
http://brettonwoodsproject.org/imfhonduras67

Concerns over IFC's upcoming performance standards review
by Ben Natkin
The IFC has launched the three year review of their performance standards on social and environmental sustainability but civil society has raised concerns about the review and critiques remain with regard to the content of the standards.
http://brettonwoodsproject.org/ifcpsreview67

IFIs and Zimbabwe : a love - hurt relationship
by Taurai Chiraerae
The allocation of special drawing rights to Zimbabwe have stirred controversy about whether the country should use these to bolster its flagging public finances, while the fragile coalition government struggles with an external debt burden projected by the IMF to hit almost $7 billion by the end of the year.
http://brettonwoodsproject.org/zimbabwe67

Safeguard policies and performance standards
Originally drafted as internal operational policies to guide staff, World Bank safeguard policies evolved after pressure from environmental and social groups in the 1980s and were first officially implemented in 1998. They aim to protect people and the environment from the adverse effects of Bank-financed operations and are based on international agreements, even if these protections are not explicitly provided for in the borrower country's national law.
http://brettonwoodsproject.org/inside67

Contract transparency missing as IFC expands oil investments in Africa
by Joshua Klemm
As the World Bank's private lending arm, the International Finance Corporation (IFC), expands its role in the African oil and gas sector, civil society groups are insisting that it adopt a requirement for full contract transparency in all of the extractive industries projects that it finances.
http://brettonwoodsproject.org/ifcoilafrica67

IMF advice paradox: increase social spending, but contain deficits
by Nuria Molina
During the last year, endowed with record funding and painted by the G20 as the 'saviour' of crisis-hit developing countries, the IMF has embarked on a public relations offensive to prove that it has changed its traditionally austere policy advice and conditions and has become 'more flexible'.
http://brettonwoodsproject.org/imfadvice67

IMF conditions stoke controversy, prompt strikes
The IMF's loans across Europe, from Iceland to Romania are stoking deep controversy and protest. Resistance is building from civil society against the austerity being imposed.
http://brettonwoodsproject.org/imfloans67