Inter-American Development Bank under pressure over new capital requests
This week, more than 100 civil society organizations from 18 countries stepped up pressure on Inter-American Development Bank (IDB), sending a letter urging its governors to explain how the bank's failing grades in transparency, sustainability, and accountability will be repaired before approving management's request for a significant capital increase. The Center for Economic and Social Rights was among the signatories.
The public letter was directed at a number of IDB governors, who are usually the finance and planning ministers from member countries and are reviewing the ninth General Capital Increase (GCI-9) proposal in advance of the vote expected at the Annual Meeting of the Board of Governors slated for March 19-23 in Cancun, Mexico. Initially touted by the IDB to be over $180 billion, heavy criticism has reportedly pushed the Bank's request much lower.
In the letter, civil society organizations (CSOs) continue to question the IDB's eligibility for a capital increase. Pointing to a failed consultation process around the replenishment, CSOs challenged the bank's refusal to provide civil society adequate evidence that greater public debt is merited to recapitalize the IDB. The IDB has long refused to share a current draft of its recapitalization proposal or to provide responses to recommended reform.
Civil society groups urged the bank's governors to require concrete prior actions for implementing a set of recommendations that insist on stronger commitments to sustainability and results instead of just rubber stamping management's GCI request.
"During the replenishment process, IDB management has consistently shown a lack of candor and seriousness about learning from the past or about incorporating valid civil society concerns," said Vince McElhinny of Bank Information Center, a Washington D.C. based non-governmental organization. "Before they vote on the replenishment, we are asking the governors tell us where they stand on our proposals for reform and how they are representing the interests of member countries."Posted by Kevin Donegan on February 19th, 2010