Christian Aid says IMF and World Bank face legitimacy crisis

-26/09/06

The internation


Christian Aid says IMF and World Bank face legitimacy crisis

-26/09/06

The international relief, development and advocacy organization Christian Aid says his yearís International Monetary Fund and World Bank autumn meetings will be remembered for the Singaporean governmentís shameful clampdown on civil society.

The charity says that among those barred from entering the country were its own partners. Many others were detained and questioned on arrival, including Christian Aidís senior policy officer Sony Kapoor.

Despite calls for the meetings to be cancelled, business continued as usual. At the IMF, a deal was agreed to increase the votes of a few under-represented members.

This tinkering will do nothing to address the Fundís ‘legitimacy crisis’ as the countries most affected by its policies still have virtually no say, says Christian Aid.

The 44 countries of sub-Saharan Africa have less combined voting share than the UK, with 4.41% and 4.95% respectively.

ìThis deal is a farce. This process is nothing more than rearranging the deckchairs on a sinking ship,î commeted Sony Kapoor.

ìMore importantly, it does not address the fundamental question of how the IMF is operating in low income countries in the first place. Christian Aid believes it is time for the IMF to stop long-term lending to them.î

The IMF was never supposed to be a development organisation. But its role has expanded to include lending to low income countries, with extensive economic conditions. Christian Aid believes it should return to its original role ñ short-term financial support in times of crisis and monitoring the global economy.

At the World Bank meetings, Christian Aid was relieved that members refused to adopt World Bank President James Wolfowitzís controversial anti-corruption strategy. Instead, the consultation period was extended.

The agency takes the issue of corruption extremely seriously. But it believes that it would be disastrous if the World Bank took on the role of a global anti-corruption watchdog. It does not have the legitimacy, mandate or competence to do so.

ìIt is ironic that a man who was parachuted into his job through backroom deals is now the cheerleader of good governance,î said Mr Kapoor.

ìIn the past, the Bank has used its anti-corruption work as a Trojan horse to compel countries to privatise when there is little evidence to indicate that privatisation reduces corruption,î he added.

Christian Aid says it believes that rich countries must do a great deal more to tackle corruption promoted by their own multinationals, financial centres, banks and institutions, instead of continuously pointing the finger at developing countries.

[Also on Ekklesia: Facing corruption as a global issue; Christian Aid says Government has not gone far enough over World Bank; Christian Aid gifts from Present Aid; Christian groups say abstinence-based HIV strategies are harmful; Christian Aid signals concern at Afghan NGO killing; Christian Aid warns of trade talks walk-out after leak; Time to get tough with World Bank and IMF, says Christian Aid; Tory leadership candidate attacks Christian agency on trade; Christian Aid warns of further devastation Haiti; Christian Aid calls for anti-poverty strategy to tackle HIV]


Christian Aid says IMF and World Bank face legitimacy crisis

-26/09/06

The international relief, development and advocacy organization Christian Aid says his yearís International Monetary Fund and World Bank autumn meetings will be remembered for the Singaporean governmentís shameful clampdown on civil society.

The charity says that among those barred from entering the country were its own partners. Many others were detained and questioned on arrival, including Christian Aidís senior policy officer Sony Kapoor.

Despite calls for the meetings to be cancelled, business continued as usual. At the IMF, a deal was agreed to increase the votes of a few under-represented members.

This tinkering will do nothing to address the Fundís ‘legitimacy crisis’ as the countries most affected by its policies still have virtually no say, says Christian Aid.

The 44 countries of sub-Saharan Africa have less combined voting share than the UK, with 4.41% and 4.95% respectively.

ìThis deal is a farce. This process is nothing more than rearranging the deckchairs on a sinking ship,î commeted Sony Kapoor.

ìMore importantly, it does not address the fundamental question of how the IMF is operating in low income countries in the first place. Christian Aid believes it is time for the IMF to stop long-term lending to them.î

The IMF was never supposed to be a development organisation. But its role has expanded to include lending to low income countries, with extensive economic conditions. Christian Aid believes it should return to its original role ñ short-term financial support in times of crisis and monitoring the global economy.

At the World Bank meetings, Christian Aid was relieved that members refused to adopt World Bank President James Wolfowitzís controversial anti-corruption strategy. Instead, the consultation period was extended.

The agency takes the issue of corruption extremely seriously. But it believes that it would be disastrous if the World Bank took on the role of a global anti-corruption watchdog. It does not have the legitimacy, mandate or competence to do so.

ìIt is ironic that a man who was parachuted into his job through backroom deals is now the cheerleader of good governance,î said Mr Kapoor.

ìIn the past, the Bank has used its anti-corruption work as a Trojan horse to compel countries to privatise when there is little evidence to indicate that privatisation reduces corruption,î he added.

Christian Aid says it believes that rich countries must do a great deal more to tackle corruption promoted by their own multinationals, financial centres, banks and institutions, instead of continuously pointing the finger at developing countries.

[Also on Ekklesia: Facing corruption as a global issue; Christian Aid says Government has not gone far enough over World Bank; Christian Aid gifts from Present Aid; Christian groups say abstinence-based HIV strategies are harmful; Christian Aid signals concern at Afghan NGO killing; Christian Aid warns of trade talks walk-out after leak; Time to get tough with World Bank and IMF, says Christian Aid; Tory leadership candidate attacks Christian agency on trade; Christian Aid warns of further devastation Haiti; Christian Aid calls for anti-poverty strategy to tackle HIV]