(Washington, DC) – This week, more than 100 civil society organizations from 18 countries stepped up pressure on the 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 public letter was directed at a number of IDB governors, who are usually the finance and planning ministers from member countries and who are reviewing the 9th 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 GCI 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 to 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 to tell us where they stand on our proposals for reform and how they are representing the interests of member countries.”
Given that legislatures in each country would have to eventually approve their share of the capital increase commitment as public debt, the coalition of civil society groups has sounded the alarm on the Bank’s glaring lack of accountability within member countries to boost leverage for crucial reforms.
Proposed reforms include a more comprehensive climate change strategy that recognizes the differential responsibilities codified by the UNFCCC; one that phases out of fossil fuel lending, and reduces deforestation and protects indigenous rights, and verifiable linkage of staff compensation to evidence-based development outcome, among others.
“Despite its ‘better bank’ rhetoric, the IDB ranks lowest among multilateral banks, lower even than the World Bank, on issues of sustainability, poverty alleviation, and accountability,” said Valeria Enriquez of Mexican NGO, FUNDAR. “The governors should account for this sad reality before they indebt their societies further to recapitalize the IDB.”
For the full text of the letter in English, go here.
For the full text of the letter in Spanish, go here.
Media Contacts:
Vince McElhinny, Bank Information Center, (Washington D.C.) (240) 486 4224 [email protected]
Andrew Miller, Amazon Watch, (Washington, D.C.) (202) 423 4828 [email protected]
Maria Jose Romero, ITeM (Montevideo, UGY) [email protected] (598) 2 9020490 ext. 106
Margarita Florez, Instituto de Servicios Legales Alternativos, ILSA (Bogota, CO) (571) 288 0416 [email protected]
Cesar Gamboa, Derecho, Ambiente, y Recursos Naturales (DAR), Perú, [email protected] (511) 266-2063
Valeria Enríquez, Centro de Análisis e Investigación, FUNDAR., D.F., México (52-55)5554-3001 ext. 150, [email protected]
Juan Martín Carballo, CEDHA – Centro de Derechos Humanos y Ambiente, Argentina, Tel. (202) 361 7039, [email protected]
