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In depth I  International Monetary Fund - IMF Amid food riots and shaken governments IFIs scramble to develop a coherent response Source: Bank Information Center At the mid-April Spring Meetings of the World Bank and the IMF, the top agenda items were closely linked: the enduring financial crisis, the global food crisis, and climate change. Among the three, the global food crisis clearly stood out in its magnitude and gravity. May, 2008[see more]   print    send   Correct  ADD YOUR COMMENT >> When the International Monetary Fund (IMF) and World Bank Directors meet for their Spring and Annual Meetings tens of thousands of demonstrators regularly protest in front of the conference centers. The activists want to raise global awareness of the neoliberal trade and financial policies of the Bretton Woods Institutions. These policies were established in 1989 in the so-called “Washington Consensus” between the World Bank, IMF and the US Government. In exchange for credits, borrower countries were obliged to implement measures including fiscal discipline, trade and financial liberalization, tax reform and the privatization of state enterprises. These were the principles on which developing countries were to be integrated into the global economy. According to NGOs, however, the policies promote unfettered globalization, causing more poverty and environmental destruction in developing countries. The International Monetary Fund was founded together with the World Bank in Bretton Woods in 1944. As a reaction to the Great Depression in the 1930s and the devastating consequences of the Second World War, the allies, led by the United States and Great Britain, sought to create an international financial institution to guide the global economy. When the IMF was established it had three core missions which later changed over time. First, instead of floating exchange rates, a system of pegged, but adjustable exchange rates was created with the IMF as its focal point. Currencies were tied to the US dollar, which in turn was tied to gold. When the gold exchange standard collapsed in the 1971-1973 currency crisis, the IMF lost this core mission. Second, the Fund provided short-term finance to countries with temporary balance of payment problems. With the growth of international capital markets in the 1970s these also provided short-term credits, at least to industrialized countries, which were the main IMF clients during the 1950s and 1960s. Third, the Bretton Woods' vision of a global financial system was initially impeded by the Cold War. Only following the breakdown of the Soviet Union and the opening up of the Eastern Bloc states did this change. IMF membership has grown from the 29 states that joined the Fund in 1945 to the current total of 184 states. When the original mandate of the IMF was undermined the Fund sought a new mission. So it claimed, for instance, that floating exchange rates also required management by an international organization. The new system was susceptible to overshooting, resulting in adjustment costs for the real economy. On the private capital market short-term financial support was available neither in times of crisis, nor to low income countries. Therefore, the IMF was to provide crisis management, including short-term capital, in particular to countries which could not easily access private capital markets. When short-term lending became more and more unnecessary, the IMF, jointly with the World Bank, established programmes aimed at providing medium- and long-term support for developing countries. However, this new focus presented a challenge in terms of resources and know-how, as the IMF is a relatively small international organization with only about 2,800 staff, dominated by neo-liberal economists. According to NGOs, the new objectives the IMF gradually adopted after it lost its original mandate could not be accomplished satisfactorily. Its long-term development programmes competed with the mission of other organizations such as the World Bank and the UNDP. Moreover, the programmes failed to accelerate the economic development of Third World countries, as promised by the Fund. In particular, the tying of programmes to extensive conditions has been questioned. As the conditions focus on reduction of balance-of-payment deficits over a set period of time, usually by reducing public expenditure and/or raising taxes, they often hit the poor the hardest. Other critiques point to the IMF's inability to enhance the stability of the international financial system. Its management of financial crises, such as in Latin America and Asia, often applied the wrong remedies for the borrower countries and represented a bail-out for Western investors, rather than support for the countries in need. These policies, say critics, are a direct result of the G7's domination of the Fund's decision-making structure. Since the United States alone has a share of 17,3 per cent of the votes and North America and the EU combined more than 50 per cent, it is often said that the IMF is an instrument of Western financial and economic interests. For major decisions an 85 per cent majority of votes is required, giving the US de facto veto power. In contrast, borrower countries are seriously under-represented on all levels. As a result of NGO pressure, the IMF has implemented some reforms to improve the transparency and accountability of its operations and decision-making process. It announced that it would require less conditions from borrower countries and reverse its "mission creep". Programmes such as the Poverty Reduction Growth Facility (PRGF) and the Heavily Indebted Poor Country (HIPC) Initiative, however, have so far failed to reduce poverty substantially. share:   print    send   correct  ADD YOUR COMMENT >>  Official websites  General information  Civil society  60th anniversary Spring Meetings  The debate about the quality of IMF policies  Conditionality and the Washington Consensus  IMF management of financial crises  IMF-World Bank long-term development strategies  IMF-WB policies in low income countries  Highly Indebted Poor Countries (HIPC) Initiative  The IMF and civil society  IMF reform  IMF and armed conflicts  Alternatives to the IFIs   News Up-to-date current affairs information. Thu Apr 12 2007 Reforms urged to fix ailing IMF Fuente: SUNS Wed Mar 07 2007 Turbulence at the IMF and World Bank Fuente: Rebelión In-depth reports Detailed reports on key issues Financing for Development The opportunity that came up in Monterrey can turn into a road to nowhere without an injection of political will. World Bank The World Bank's main self-proclaimed objective is to eradicate poverty. Yet, evidence suggests that its programmes often harm the poor and the environment. Economic, social and cultural rights - ESCR ESC rights are valid, enforceable, justiciable and claimable under both local and international law. Civil society is campaigning for their full implementation. World Social Forum (WSF) 2004 The Fourth World Social Forum was held at the Indian city of Mumbai. World Social Forum (WSF) 2003 Information on the third WSF, which took place in Porto Alegre from 23-28 January 2003. Campaigns NGO-organised actions Act now to support unconditional reaffirmation of the Beijing Platform NGOs NGO web sites Bretton Woods Project The Bretton Woods Project works as a networker, information provider, media informant and watchdog to scrutinise and influence the World Bank and International Monetary Fund (IMF). IFI Watchers Network The IFI Watchers Network connects organizations worldwide which are monitoring international financial institutions such as the World Bank and International Monetary Fund. Third World Network (TWN) International network of organizations and individuals involved in issues relating to development, the Third World and North-South issues.      Official websites The International Monetary Fund Extensive information about the work of the IMF including press releases, transcripts of press briefing, staff speeches, working papers, staff country reports, policy discussion papers, public information notices, etc. The Independent Evaluation Office of the IMF As a reaction to growing criticism about its performance the IMF created the Independent Evaluation Office (IEO) in July 2001. Its main task is to conduct independent studies of issues relevant to the mandate of the IMF work. This website serves as a gateway to information about the IEO. The World Bank The sister organization of the IMF, which cooperates with the Fund in long-term development. Both organizations meet twice a year for the their Spring and Annual Meetings. The website covers extensive information about and publications of the Bank. The Development Committee The Development Committee is a joint forum of the IMF and World Bank. It advises the Boards of Governors of the institutions on the transfer of financial support for developing countries, for example, within programmes such as the PRGF and debt relief. Documents and general information are available on this site. G-24 The Intergovernmental Group of Twenty-Four on International Monetary Affairs (G-24) presents the position of developing countries on monetary and development finance issues. It consists of eight members each from Latin America and the Caribbean, Africa, and Asia. Research and discussion papers on IMF issues can be found on the website. G-20 The G-20 is an informal forum which seeks to promote an open and constructive dialogue between industrial nations and emerging-market countries on key issues related to the IMF and, in the process, to help strengthen the international financial architecture. Members include all G-7 countries and large developing nations such as China, India and Brazil. Together they represent around 90% of global gross national product, 80% of world trade as well as two-thirds of the world's population.    General information What is the International Monetary Fund? Source: IMF Comprehensive introduction to the origins, decision-making processes, and working areas of the IMF with links to more detailed information on particular issues. IMF Annual Report 2003 This report highlights the work of the IMF (covers the financial year ended 30 April 2003) in areas such as surveillance, crisis prevention and resolution, lending policies and practices, the fight against poverty, technical assistance and training, transparency, accountability and cooperation as well as the financial operations and budgets (pdf format). Arming NGOs With Knowledge: A Guide to the International Monetary Fund Source: Friends of the Earth US This handbook provides a historic overview, a detailed description of IMF structure and voting system and analyses what is wrong with the IMF from an NGO point of view. It presents the different NGO proposals for reforming the organization as well as campaign strategies. The handbook includes a bibliography, glossary and contact list (pdf format). Hoover Institution: International Monetary Fund The IMF site of the Hoover Institution, a public policy research centre at Stanford University. Extensive collection on articles about origins, operations and programs of the Fund as well as debates about its failures and future role. Glossary of selected financial terms Source: IMF Glossary to help understanding the financial terminology of the Fund. Glossary of World Bank and IMF terms Source: Bretton Woods Project Definitions of abbreviations, terms and acronyms associated with the World Bank and IMF.    Civil society The fiftieth anniversary of the Bretton Woods Institutions in 1994 marked the beginning of an organized international network of pressure groups calling for substantial reforms or even abolition of the IMF. Since then, global resistance against the World Bank and IMF has received worldwide media attention, in particular at their biannual meetings, where various groups from all over the world demonstrate against the institutions. However, opposition to the organizations’ policies includes more subtle strategies as well, for instance, lobbying policymakers, letter-writing campaigns and media briefings. Most groups listed in this section work on IMF as well as on World Bank issues such as the Bretton Woods Project and 50 Years is Enough. Many, e.g. Eldis and Global Exchange, deal with wider issues related to globalization. Some are specialized in a particular issue, e.g. the environment, and solely deal with IFIs insofar it is related to their specialization, such as Friends of the Earth. Where appropriate, the link leads directly to the relevant section on their web sites rather than to their homepage. IFIwatchnet A network of civil society groups worldwide which are monitoring the IFIs. Works as a portal to the participating organizations and includes summaries of briefings, reports and other documents which are accessible by the accompanying links. Bretton Woods Project Independent initiative by a group of British NGOs that lobbies for increasing transparency and civil society participation in World Bank and IMF policies and interventions. Through briefings, reports and a bimonthly newsletter, it monitors policy reforms and the overall management of the Bretton Woods institutions with special emphasis on environmental and social concerns. 50 Years Is Enough US network which calls for an unconditioned cancellation of all IMF and World Bank debts, an end to structural adjustment, and reparations for the social and environmental damage done by the IMF and World Bank programs. Third World Network News and articles on IMF and World Bank issue from this international network of organizations and individuals involved in issues relating to development, the Third World and North-South issues. The international secretariat is based in Penang, Malaysia. It has offices in Delhi, Montevideo, Geneva, London and Accra. Focus on the Global South Section devoted to Finance and Development from Bangkok-based organization, which believes that the free-market economic policies of IMF and the World Bank have crippled the state as an agent of development and protector of the community. It promotes alternatives that advance the interests of poor and marginalized peoples around the world, but especially in the Asia-Pacific. Jubileesouth A network of debt campaigns from Latin America, Asia and Africa that demands the unconditional cancellation of all debts owed by developing countries. It also calls for an end to structural adjustment programmes and the shutdown of the IMF and World Bank. Afrodad Regional research and lobbying organization dealing with IMF and World Bank policies as they affect African states. Includes a PRSP database and an online discussion forum. People’s Global Action IMF/World Bank/WTO site of this anti-globalization network, which focuses on direct action and civil disobedience to accomplish policy change. Website serves as main gateway to protests at IMF/World Bank meetings and includes detailed records of demonstrations against the IFIs from around the world. Halifax Initiative Canadian network for public interest advocacy and education on IFIs reform. The campaign on IMF focuses e.g. on debt cancellation, halting structural adjustment as well as increasing transparency, public participation and accountability in the Fund’s operations. Global Exchange International human rights organization with a campaign against World Bank and IMF. According to the organization the institutions are the world’s biggest loan sharks whose policies require debtor countries to open up their economy to foreign investors allowing access to the country's workers and environment at bargain basement prices. Friends of the Earth United States According to this environmental organization the IMF’s focus on liberalization and privatization policies leads to increased exports of natural resources and primary commodities causing environmental damages in the developing countries. Eldis This British gateway to information on development issues offers a wide range of resources on IMF and World Bank. It has a directory of websites, databases, library catalogues and email discussion lists. Center for Economic and Policy Research US-based research institute which generally criticizes the IMF and World Bank policies. Holds many articles dealing with the financial crisis in Argentina this decade. International Development Economics Associates Network of economists mainly from developing countries that seeks to develop alternatives to the current neo-liberal economics, which according to them has failed to achieve sustainable, equitable and participatory growth. Stop IMF list-server Stop IMF is a list-server that posts news clips, legislative updates, speeches, reports, testimonies, urgent actions and other information related to the International Monetary Fund.    60th anniversary Spring Meetings Sixty years after their founding, the World Bank and IMF remain the dominant institutions in development but face determined opposition to their role in shaping globalisation. 60th anniversary spring meetings protest plans Source: Bretton Woods Project The spring meetings of the IMF and World Bank will be taking place in Washington DC, 24-25 April. This year's meetings mark sixty years since the founding of the Bretton Woods Institutions. No celebrations here -fierce controversy continues over the mandate, policies and projects of the Bank and Fund. Summary of civil society discussion with World Bank and IMF This discussion occurred in the days leading up to World Bank/IMF 2004 Spring Meetings. The purpose of this session was to discuss the new debt sustainability framework that the International Monetary Fund and the World Bank are working on. Africa, the World Bank and the International Monetary Fund Source: Pambazuka Newsletter Beginning with an article by Patrick Bond that examines how the Bretton Woods Institutions have responded to criticism over their democratic credentials, their particular approach to development policy, their ongoing support for mega-projects and their failure to cancel debt, Pambazuka News will be carrying a series of articles in the context of Africa, leading up to the annual meetings of the World Bank and IMF in October. August 2004. Debt, and hope, remain Source: IPS The World Bank and the International Monetary Fund (IMF) wrapped up meetings with no major results for developing nations, but the gathering might have moved the issue of poor nations' debt onto rich nations' permanent agenda. October 2004.    The debate about the quality of IMF policies This section deals with the quality of IMF work, in particular after the “Washington Consensus” in 1990 introduced neoliberal structural adjustment measurements, which guided IMF policies for at least a decade. Not only NGOs, but also leading economists criticize the narrow ideological basis of IMF advice on economic and financial reforms in borrowing countries. The anti-IMF protests which peaked at the Prague 2000 meeting triggered worldwide media attention and prompted a debate about IMF work. This section deals with the wider issues, while special sections are devoted to the IMF management of the financial crises and IMF/World Bank long-term development strategies. Top Ten reasons to Oppose the IMF Source: Global Exchange What is wrong with the IMF in a short and pointed view from this international human rights organization. It presents the IMF as an institution which serves Western financial interests, thereby hurting the poor and the environment. Twenty Questions on the IMF Source: Third World Traveler A short introduction into IMF history and policy from a critical point of view. Deals e.g. with structural adjustment, the Fund’s handling of financial crisis as well as the effect of its programs on the poor and the environment. States of unrest: Resistance to IMF policies in poor countries Source: World Development Movement Collection of articles, which present an overview of anti-IMF protests and demonstrations in Latin America and Africa in 2000. These protests by the hardest-hit, poor people were hardly reported in the mainstream media of developed countries. Common Criticisms of the IMF: Some responses Source: IMF In this FAQ the IMF responds to some of the critical remarks about the organization. The International Monetary Fund and World Bank in Africa: a "disastrous" record Source: Pambazuka This year marks the 60th anniversary of the International Monetary Fund and the World Bank. Since the 1970s, these institutions have gradually become the chief architects of policies, known as "the Washington Consensus," which are responsible for the worst inequalities and the explosion of poverty in the world, especially in Africa. By Demba Moussa Dembele, September 2004. Charging interest on bullets: calls mount for debt cancellation Source: Bretton Woods Project High-profile debt cases in South Asia, Argentina and Iraq are leading to increased calls worldwide for independent tribunals to determine which debts are not legally enforceable. To date, international institutions have failed to address the issue of odious debt. Civil society organisations have called for an independent assessment of which debts are legally enforceable. February 2005. Devilish details: Implications of the G7 debt deal Source: Eurodad Debt deal by G7 Finance Ministers received massive media coverage in South and North alike. The determined efforts of debt campaigners around the globe undoubtedly pressured Northern Governments and the IFIs to look seriously at the debt issue. It is because of us that governments and officials were forced to recognise that existing debt relief initiatives were wholly insufficient and that a new deal had to be struck. June 14, 2005. Playing chicken: Ghana vs. the IMF Source: CorpWatch The action of the Ghanaian government, under pressure from the IMF, has greatly undermined the tenets of good governance and the rule of law, which are said to be promoted by world financial institutions all over the world. June 2005. Warning of a new financial crisis Source: Third World Network Martin Khor At a recent meeting of the Group of 24 (which represents developing countries in the IMF and World Bank), a warning was given of a looming global financial crisis triggered by a sharp fall in the US dollar. The effects would be devastating on many developing countries, and steps should be taken to prevent the crisis or to prepare for it. March 2006. Preserving disorder: IMF policies and Kenya's health care crisis Source: Pambazuka News Soren Ambrose Compared to 20 years ago in Kenya, people live for ten years less on average, more children die in infancy and a greater proportion of those who survive face stunting. Why? Soren Ambrose makes a case for holding the International Monetary Fund (IMF) responsible, arguing that the institution's obsession with low inflation rates - one of the foundations of trade liberalization - starves economies and hurts the poor. May, 2006 Amid food riots and shaken governments IFIs scramble to develop a coherent response Source: Bank Information Center Skyrocketing food prices have forced the international financial institutions (IFIs) to articulate responses to the situation. The World Bank has conjured a "New Deal for Global Food Policy" to pump agriculture-oriented loans and programs into Africa and to address emergency financing needs. The IMF has voiced concern over the likely macroeconomic shocks of the food crisis in low-income countries. But the Bretton Woods Institutions must wrestle with a legacy that helped set the stage for diminished food security in many low-income countries. Mayo, 2008    Conditionality and the Washington Consensus The conditions of IMF loans focus on reduction of balance-of-payment deficits within a set time period. They often force countries to cut back public expenditure, e.g. by introducing user fees for education and healthcare. Such measures often hit the poor in developing countries the hardest. Therefore, the abolition of strict conditionality of IMF programmes is an often demanded element of the Fund's reform. The conditions that guided IMF programmes in the 1990s were established by the so-called "Washington Consensus". The Bretton Woods Institutions and the US administration agreed in 1989 on the conditions for IMF support, which, again, guide the loans of almost all official and private lenders. The "Washington Consensus" comprised ten policy reforms borrower countries had to meet: pursue fiscal discipline, in particular by reducing public expenditure; liberalize trade and financial markets; reform the tax system and float exchange rates; privatize and deregulate the state economy; welcome foreign investment and guarantee property rights. This section summarizes the main debate about conditionality. As conditions are part and parcel of all IMF programmes, more articles on the issue can be found in the sections about IMF crisis management and structural adjustment. What Washington means by policy reform Source: Institute for International Economics This paper summarizes the 1989 agreement of World Bank and IMF on conditionality for financial support and coined the now famous phrase “Washington consensus”. IMF conditionality: A factsheet Source: IMF Introduction to the hotly debated conditionality of IMF loans explaining why conditions are necessary and how compliance with them is assessed. An analysis of IMF conditionality Source: Source G-24 IMF conditionality increased during the 1980s and 1990s, while compliance with the Fund’s programmes declined in parallel. A review and streamlining of conditionality is necessary which should lead to increasing participation of member countries in the programs (pdf-format). IMF structural conditionality: How much is too much? Source: Institute for International Economics There are limits to the Fund’s power in imposing conditions the member country is not strongly committed to. While the IMF has considerable knowledge about macroeconomic policies, it nowadays tends to include structural conditions in areas where it has little understanding, leading to non-compliance and failure of programmes (pdf format). Burying the “Washington Consensus” Source: Global Policy Forum Many IMF/World Bank decision-makers have direct links with Wall Street’s investment banks. As a result the institutions continue to prescribe the “Washington Consensus” policies, which were never subject of a general debate or vote. Instead of promised economic growth, these policies increased poverty, unemployment, and environmental damage in Latin America and elsewhere. The Washington Consensus is not dead Source: Council of the Americas After neo-liberal policies failed to help Argentina’s economy, the Washington Consensus is being proclaimed dead by many. The author states that other countries in Latin America such as Mexico and Chile prosper following the economic advice of the IMF. Even leftist governments like the Lula administration in Brazil apply – despite their image – non-interventionist economics. The IMF and the Washington Consensus: a misunderstood and poorly implemented development strategy Source: COHA The Washington Consensus should not have spawned the contempt oft associated with its name; the advisory document is guilty only by association with the IMF. To truly aid emerging markets and break Latin America’s economic stagnancy, the Consensus, at worst, needs to be restricted to its founder’s intentions as a set of non-rigid guidelines. July, 2005 Decentralization and Sovereignty Source: Citizens’ Network on Essential Services Nancy Alexander In many countries, citizens clamor for decentralization which can vest them with greater grassroots power and autonomy. The foundation of decentralization is the "principle of subsidiarity", which assigns power and responsibility to the lowest level of government – the level closest to the people being served. However, market decentralization shifts power and responsibility from governments to firms – even in the areas of health care, education and water services. Particularly in the absence of strong regulation, citizens, especially poor citizens, have little power over firms. (pdf format) August, 2006 Structural adjustment and the Washington Consensus: Are they things of the past? Source: CADTM Eric During the 1980s, the IMF and the World Bank earned themselves the highly justified but less than enviable reputation of being responsible for very unpopular measures forced upson governments of developing countries - in short, of being the bane of the poor. It must be said that the governments themselves, often in cahoots with the ruling classes, found it convenient to place the blame on these distant institutions located in Washington D.C.. This dangerous reputation spread like wildfire and newspapers in the South began to give it ample coverage. December, 2006 How the World Bank and the IMF are still addicted to attaching economic policy conditions to aid Source: Oxfam Despite numerous commitments to reform, the World Bank and the IMF are still using their aid to make developing countries implement inappropriate economic policies, with the tacit approval of rich-country governments. These economic policy conditions undermine national policy-making, delay aid flows, and often fail to deliver for poor people. If the world is to make poverty history, this practice must be stopped. December, 2006 What progress? A shadow review of World Bank conditionality 2006 Source: Action Aid Over the past three decades, the World Bank has radically re-shaped the policies of developing countries. But the practice of conditionality has also attracted a welter of criticism. A growing body of evidence about the failure of conditionality to build ownership or lead to pro-poor reform – some of it produced inside the Bank – has started to force a rethink. January, 2007 (pdf format) You can have the money on one condition... Source: Third World Network Claire Mc Guigan Many non-governmental organizations have been campaigning for years to persuade the World Bank to stop imposing free-trade conditions on cash-strapped borrower nations. This process is, prosaically, known as 'conditionality', and the struggle over it has been a long one. But the problems caused by inappropriate conditions being forced on poor countries have not ended. On the contrary, the World Bank continues to promote reforms such as privatisations - a problem highlighted by events in Nicaragua. January, 2008    IMF management of financial crises IMF management of financial crises Source: Choike This section highlights the widely debated IMF management of the financial crises in Eastern Europe, Latin America and Asia. While civil society groups as well as politicians and scientists often criticize the Fund’s role, the IMF staff largely denies a failure at all or blames the countries in question for the negative outcome of the bail-outs. Argentina and Brazil: challenges of the cancellation of debt to the IMF Source: IFIs Latin American Monitor The Latin American and global scenario was astonished by recent announcements made by Brazil and Argentina with regards to their cancellation of debt to the International Monetary Fund (IMF). The crises both countries went through at the end of the 20th century and early 21st century forced governments to resort to the IMF and thus increase their degree of indebtedness as well as the exposure of their economies. At the present time, the prevailing strategy in the region, earnestly supported by the IMF, is that of “dis-indebtedness”. December, 2005    IMF-World Bank long-term development strategies IMF/World Bank long-term development strategies Source: Choike When short-term lending was needed less, the IMF turned its focus toward programs aimed at medium and long-term support for developing countries. After these structural adjustment programs were heavily attacked by NGOs in the 1990s, the institution agreed upon new approaches which stronger incorporate poverty reduction strategies. NGOs, however, claim that these are merely the old neoliberal policies in new packaging. Introducing democracy into solving the debt problem Source: Network Institute for Global Democratization Katarina Sehm-Patomäki From a Southern countries’ perspective, their debt burden is mounting and this is creating serious situations. The debt burden, however, forms only one part of the mechanisms by which the North extracts wealth from the South. From the South, we hear calls for the North to compensate the South for exploitation dating back to the beginning of the capitalist system. On the other hand, from a creditor’s perspective, loan agreements are agreements that entitle them to get the agreed amount repaid according to the agreed schedule and agreed interest rates. November, 2005 The IMF’s role in trade reform Source: Citizens' Network on Essential Services Technically, each member of the WTO has equal power, but in reality a few industrialized countries rule decision-making processes. These are the same countries that dominate the Boards of the IMF and World Bank. These governance issues constitute an inherent `conflict of interest’ for the institutions’ policy-making prescriptions. (pdf format) March, 2006 Difficult beginnings between the UN and the World Bank Source: CADTM The World Bank and the IMF are specialized institutions of the UN, comparable in theory to the International Labour Organization (ILA) or the Food and Agriculture Organization of the United Nations (FAO). As such, they are supposed to cooperate closely with the various UN bodies and the other specialized institutions to achieve the objectives set out in the Charter and in the Universal Declaration of Human Rights. However, both institutions attempted to extricate themselves to a large extent from their obligations. October, 2006    IMF-WB policies in low income countries Helping the poor? The IMF and low-income countries Source: Fondad This book critically analyses the role of the IMF and the World Bank in assisting poor countries. The book questions whether IMF policies and practices have been beneficial to poor countries. The authors point out that much the IMF provides insufficient assistance to poor countries. Furthermore, their assistance is often inadequate and are not directed towards the appropriate targets of need. (pdf format) 2005 The Internacional Monetary Fund and World Bank in Africa: a 'disastrous' record Source: Pambazuka Demba Moussa Dembele Since the 1970s, IMF and WB have gradually become the chief architects of policies, known as "the Washington Consensus," which are responsible for the worst inequalities and the explosion of poverty in the world, especially in Africa. December, 2006 IMF macroeconomic policies and health sector budgets Source: Wemos Achieving the health-related Millennium Development Goals requires a substantial financial injection in the health sectors of low-income countries. Particularly important is the investment in sufficient and qualified health personnel. The IMF makes it difficult for developing countries to take appropriate measures by setting conditions on overall government expenditure that limit the amount of money they can spend on health care and salaries. In this report describing the main findings and conclusions of the four country studies (Ghana, Zambia, Kenya and Uganda), the authors explain why the budget ceilings imposed by the IMF are countereffective. March, 2007 IMF's self-evaluation: Lessons for Zambia? Source: Civicus Pete Henriot The report brings out issues that civil society organisations (CSOs) have for a long time been raising but yet ignored due to institutional arrogance. However, it is gratifying to note that the International Monetary Fund (IMF) is coming out of the ‘sleeping mode’ to face the realities and consequences of their policy actions. The author takes a swipe at the IMF for paying a blind eye to the empirical evidence generated by CSOs and other stakeholders on some of the adverse impacts of Fund policies in poor countries. (pdf format) March, 2007 Fund loosens the aid noose … but just a little Source: Bretton Woods Project After reviews of its engagement with low-income members the IMF is in the process of redesigning its programmes, but its recent changes on dealing with aid inflows have not satisfied critics of the Fund's inflexibility in allowing the scaling up of social spending. August 2007. The macroeconomic framework & the fight against HIV/AIDS in Africa Source: AFRODAD Afrodad has conducted a two country study looking at the linkages between macroeconomic frameworks provided by the International Financial Institutions (IFIs) and social spending, and in particular, the fight against HIV/AIDS in Ghana and Malawi. This study reviewed the major channels through which fiscal and monetary policies impact on public expenditure frameworks and how this, in turn, affects the ability of the countries under study to design and implement public programmes concerning those living with and affected by HIV/AIDS and assessing the debt positions of the case studies to see how the HIV/AIDS has impacted on their financial portfolios and planning abilities or vice-versa. October 2007 (pdf version). Lending policies of the IMF: HIPC and debt relief in Africa Source: Afrodad This is a brief survey of Africa’s indebtedness and the HIPC programme, an identification of the main conceptual points of disagreement with the PRGF programme, which is a requirement of HIPC, demonstrated with country examples, and recommendations. December, 2007 Changing IMF policies to get more doctors, nurses and teachers hired in developing countries Source: Action Aid Rick Rowden Mounting evidence in recent years suggests that the economic policies promoted and enforced by the International Monetary Fund (IMF) may be preventing developing countries from being able to spend more in their national budgets, with important consequences for health and education budgets being constrained at unnecessarily low levels at a time when major increases are needed. According to the World Health Organization (WHO), 57 countries, most of them in Africa and Asia, face a severe health workforce crisis. March, 2008 (pdf format) World Bank’s handling of fragile states "unsatisfactory" Source: Bretton Woods Project In September the Independent Evaluation Group (IEG) released its review of World Bank support to 'fragile states'. The report gave the Bank a mixed review on its effectiveness, but raised serious questions about both the way the Bank is organised internally to deal with fragile states and the system it uses to allocate resources. Researchers and Bank-watchers question whether the review has gone far enough to examine what causes state 'fragility' and what role Bank-led reforms and projects may play in fostering it. October, 2006    Highly Indebted Poor Countries (HIPC) Initiative Towards the end of the 1980s, concern about the rising debt problems of poor African countries prompted a few international experts to advocate effective debt relief to low-income countries. In 1996, the IMF and the World Bank introduced the Heavily Indebted Poor Countries (HIPC) Initiative to reduce to sustainable levels the external debt burdens of the most heavily indebted poor countries. Following a comprehensive review in September 1999, a number of modifications were approved to provide faster, deeper and broader debt relief and to strengthen the links between debt relief, poverty reduction and social policies. However, by 2004 the HIPC debt problem has still not been solved. Debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative Source: IMF "The HIPC Initiative is a comprehensive approach to debt reduction for heavily indebted poor countries pursuing IMF- and World Bank-supported adjustment and reform programs." Official information available on the International Monetary Fund web site. HIPC debt relief: myths and reality Source: FONDAD Jan Joost Teunissen and Age Akkerman (editors) Will the HIPC debt relief initiative finally solve the debt burden that the Highly Indebted Poor Countries are facing since the 1980s? Is there any guarantee that a country’s external debt remains sustainable after the completion of the HIPC programme? This book presents a thorough analysis of the successes and failures of the HIPC Initiative and provides a wide range of suggestions of what needs to be done. Issues addressed include the bailing-out of IMF loans by donor countries, the (mis)use of aid funds for debt relief and repayment of export credits, the need for including domestic debt in assessments of debt sustainability, and the question of whether debt relief should be de-linked from IMF conditionality. With a view to the future of low-income countries, the book relates the HIPC Initiative to the Millennium Development Goals and warns that debt relief can only provide a fraction of the funds required for reducing poverty and avoiding a new build-up of unsustainable debt. The book spells out how genuine debt relief could contribute to poverty reduction and economic growth in poor developing countries. December 2004. Fool's gold: the case for 100% multilateral debt cancellation for the poorest countries Source: Oxfam More than seven years into the Heavily Indebted Poor Country initiative, a durable exit from the debt crisis remains elusive. Even against the IMF and World Bank’s inadequate criteria, just seven countries have seen their debts reduced to sustainable levels, and 90% of low-income country debt remains on the books. Meanwhile, multilateral creditors are using the extra generosity of bilateral creditors to reduce their own contribution to HIPC debt relief. A new deal on debt relief is urgently needed, to address these shortcomings and deliver the additional resources necessary to accelerate progress towards the Millennium Development Goals. Gold is part of the solution, with the IMF sitting on reserves undervalued by at least $30bn. Revaluing this gold, and mobilising new donor finance, offer a way out of the current crisis. October 2004 (pdf version). Heavily Indebted Poor Countries (HIPC) Initiative—Status of implementation - Reviewing progress of the HIPC initative Source: IMF/World Bank This report reviews progress and issues in implementing the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. In addition to that, it discusses the decline in the participation of commercial and non–Paris Club bilateral creditors to the Initiative as well as the preliminary list of countries that satisfy the indebtedness eligibility criterion under the extended HIPC “sunset clause.” (pdf format) August, 2005 IMF reveals plans for G8 debt deal Source: Eurodad IMF concedes on 19 out of 20 but still a long way to go on debt cancellation Source: Eurodad In December 2005, the Executive Board of the International Monetary Fund (IMF) announced that it had approved immediate debt cancellation for 17 out of the 18 countries that had been promised cancellation at the G8 Summit in Gleneagles in July this year. Two further countries will also benefit from IMF debt cancellation: Cambodia and Tajikistan. January 2006.    The IMF and civil society One of the central demands of NGOs is to include civil society concerns into IMF policies and programmes. This should increase transparency and accountability of the Fund and compensate for its undemocratic voting structure. Although the IMF maintains the position that it is only accountable to its member countries, it recently moved towards a more co-operative attitude. This section presents an overview of the dialogue between the IMF and civil society. IMF Civil Society Newsletter Source: IMF As one of the responses to concerns about its lack of openness the IMF introduced the Civil Society Newsletter in 2002. It contains short descriptions of new developments relevant to civil society, and also provides references for further reading. It lists new research and discussion papers, upcoming conferences, and other relevant information. Guide for staff relations with civil society organizations Source: IMF This guide aims to assist IMF staff in their efforts to build positive relationships with civil society organizations. Since individual circumstances surrounding civil society vary enormously, staff must rely substantially on their own assessments of the specific situations they face. The guide offers a framework for dealing with the increasing transparency and accountability demands by civil society organizations. The IMF meets civil society Source: Finance and Development This article explores reasons for a dialogue between IMF and civil society. It can serve information exchange, policy debate, education and general democratization of IMF programs. Furthermore, the interchange can be a channel of public opinion and a legitimization of policies. In the future the IMF should clarify its objectives, increase its consultations with other multilateral agencies, release more documents, and integrate a civil society official into selected country teams. Civil society voices and the International Monetary Fund Source: North-South Institute Although the dialogue between the IMF and civil society has grown significantly since the 1980s, the institution's exchange with civil society remains modest and tends to be focused more on sympathetic organizations such as economic think-tanks and big business circles. However, NGOs have had some impact on the IMF, for example, in initiating debt relief programmes (pdf format). The IMF and civil society: Deepening the dialogue Source: World Vision This discussion paper states that the IMF has increased its exchange with the civil society, but real problems remain. The dialogue of the IMF with civil society is characterized by suspicion and an institutional culture that remains difficult to approach from outside, in particular, for non-economists. The Fund should treat the dialogue not only as a PR opportunity, but rather as a chance to gain expertise and ownership for its programmes (pdf format). A review of the Fund’s external communication strategy Source: IMF In this study the IMF reviews its new communication strategy implemented after growing criticism about its lack of transparency and outlines prospects for future reform. The paper includes an annex on the Fund’s dialogue with civil society organizations. It acknowledges that a direct dialogue between IMF and civil society can be useful, rather than leaving the communication only to member governments (pdf-file). The World Bank/IMF 2005 annual meeting in the balance Source: IPS As the World Bank and International Monetary Fund (IMF) annual meeting concluded in Washington, the final communiqué agreed that the debts owed by 18 of world's poorest countries to both institutions and to the African Development Bank will be cancelled, bringing an end to the suspense surrounding the issue for nearly three months. However, civil society organizations claim much more needs to be done to agree to full debt cancellation without conditions to other poor countries. September 2005. Transparency at the IMF: A guide for civil society on getting access to information from the IMF Source: Global Transparency Initiative/Bretton Woods Project The International Monetary Fund (IMF) plays an instrumental role in defining economic policy for countries that borrow from it. It is a powerful organization in setting standards and norms for the global community, including advocating for fiscal transparency. At the same time it does not fully meet the modern standards of governance and transparency that we would expect from a public organization. October 2007.