IMF and World Bank fail to respond to criticism
The International Monetary Fund (IMF) and World Bank annual meetings in Singapore ended on 20 September with neither organisation producing anything to satisfy their critics.
For many, the high profile ban on a number of activists from Singapore by the authorities there only highlighted concerns about the way the IMF and World Bank operate. In particular campaigners pointed to the way the World Bank and IMF deny poor countries a say in the way the institutions are run and, through the conditions attached to their loans, deny poor people a say in how their countries are run.
Cutting funding
Campaigners had to look outside the official meetings for signs of encouragement. The UK government's announcement that they would withhold £50 million from the World Bank until it made progress on reducing the conditions attached to its loans was widely welcomed. However campaigners warned that this was only a first step and the government had to show it was serious by calling for widereaching reforms.
The success of the UK campaign also generated interest in other countries where campaigners are discussing launching similar demands to their governments.
The success of the UK campaign also generated interest in other countries where campaigners are discussing launching similar demands to their governments.
No change
Two major initiatives announced by the World Bank and IMF during the meetings generated as much criticism as support.
The IMF announced a small reallocation of votes in an effort to respond to criticism that it is dominated by a small number of rich countries. However the reform stopped well short of making the IMF responsive to the needs of its membership. In particular the poorest countries still have no effective say in an institution that wheilds enormous power over their economies.
The World Bank's efforts to increase its involvement in issues of democracay and corruption were greeted with accusations of double standards and questions as to whether a bank is the best organisation to perform this role. The proposal appears to have been put on the back burner for further discusion. The clamping down on activists and the lack of movement within the Bank and Fund only served to galvanise campaigners meeting in nearby Batam, Indonesia. Discussions focused on continuing co-operation in order to launch a genuine international challenge.
The IMF announced a small reallocation of votes in an effort to respond to criticism that it is dominated by a small number of rich countries. However the reform stopped well short of making the IMF responsive to the needs of its membership. In particular the poorest countries still have no effective say in an institution that wheilds enormous power over their economies.
The World Bank's efforts to increase its involvement in issues of democracay and corruption were greeted with accusations of double standards and questions as to whether a bank is the best organisation to perform this role. The proposal appears to have been put on the back burner for further discusion. The clamping down on activists and the lack of movement within the Bank and Fund only served to galvanise campaigners meeting in nearby Batam, Indonesia. Discussions focused on continuing co-operation in order to launch a genuine international challenge.
Campaign update
On 5 December Hilary Benn released the £50 million that he had been withholding from the World Bank. Find out more
What you can do
We'll be asking Brown and Benn to do more to reform the IMF and World Bank. Watch this space for more actions in 2007.
Act now: Find the latest actions here
Act now: Find the latest actions here
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