BRICS challenge IFIs: Out of the frying pan into the fire? Large middle-income countries jointly initiated alternatives to the World Bank and IMF in March, but advocates are not satisfied with either set of institutions. While challenge to the IMF has been welcomed, civil society actors fear that a new development bank would serve “vested interests” and could lead to “exploitation”. Read More.
IFC Honduran client linked to death squads The International Finance Corporation (IFC, the Bank’s private sector arm) loan to Honduran palm oil producer Corporación Dinant has come under increased scrutiny as new evidence submitted to the Compliance Advisor/Ombudsman (the IFC’s accountability mechanism) in late February revealed Dinant’s links to repeated forced evictions and the killings of almost 90 local campesinos (peasant farmers) and their supporters. Read More.
IFIs on capital flows: new tune, same song? While the IMF-supported banking sector restructuring in Cyprus includes a strict set of restrictions on capital movements, the World Bank and IMF are failing to embrace a more pragmatic approach to capital account regulation. Read More.
In late February the World Bank’s private sector arm, the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) boards decided to spearhead a $4 billion dollar syndicated loan to a copper, gold and silver mine located in the Gobi Desert in Mongolia. An increasing number of people believe that it is going to lead Mongolia to dependence on one product and one corporation, driving the country into deep insecurity. Read More.
The economic crisis in Cyprus erupted during the second cycle of the European recession of 2011 as a result of harsh austerity policies imposed since 2010 in Europe. It is a new crisis born of a failed response to the original European crisis.Read More.