Tag Archives: World Bank

World Bank reform: The right tools for the job

Small businesses need support (Colombia)

Small businesses create jobs but need support

Right now, jobs are what matter. A resounding win for Mitt Romney in the first Presidential debate was wiped out in the polls by unemployment in the US falling below 8 per cent; no wonder President Obama looked so relaxed.

But for the 200 million people currently unemployed worldwide and the millions of others fearing redundancy or coming to the end of their education with uncertain prospects, there is no relaxing.

It is that stark figure and all the social consequences it entails that means jobs will be the main focus of this week’s annual meetings of the World Bank and International Monetary Fund.

And nowhere is the jobs situation more stark than in the developing world. With child mortality in long-term decline, the number of working age people in developing countries is soaring. Continue reading

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Economic Crisis: Two cheers for the United Nations

This month, CAFOD was invited to speak at the UN High Level Dialogue on Financing for Development and UN Economic and Social Council (ECOSOC) special high level meeting with the World Bank, IMF (International Monetary Fund), WTO (World Trade Organisation) and UNCTAD (United Nations Conference on Trade and Development).

It was encouraging that recurring themes in the discussions between member countries showed signs of life of attempts to learn bigger lessons from the economic crisis than have been present, for example, in G20 declarations.

The trick now will be to put political momentum behind a progressive UN voice to give all countries a say in how we rebuild the global economy.

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Climate: a serious lack of accountability

Some colleagues of mine said that when they come out of meetings from the Asian Development Bank (ADB) they feel like they have been tormented by the Dementors. 

For those who have been avoiding anything Harry Potter related for the past few years, let me enlighten you.  Dementors guard the prison where all the evil baddies are kept, known as Azkaban, and if you get in their way they suck out your soul.  

Not really an analogy anything  or -one  would knowingly want to  be  associated  with.  But after spending two days in that place I understood their meaning.

Attending the Partnership Forum, a multi-stakeholder engagement event of the Climate Investment Funds (CIFs) hosted for this year in the ADB, I got to understand the Dementor-like quality my friends were referring to. 

Whilst the CIFs themselves are yet to be operationalised, the process to establish them to date has been somewhat draining for civil society.  As mentioned in recent blogs, the lack of engagement with civil society, in particular by developing country governments with their own stakeholders, has meant there is a serious lack of accountability in the design of these funds, and what they will be spent on – we have been sidelined.

Engagement is critical, without it, programmes designed to help the public and private sector risk failure in trying to reach those they target, and thus are often not an effective or efficient method of support to developing countries.  Essential to involving stakeholders is transparency:  people need to understand the process and plans that are being funded in their name.   Transparency does not necessarily come readily to the Multilateral Development Banks (MDBs) or to country governments, developed and developing alike.   But it must be a pre-requisite for a new approach to spending public money.

So at the end of these two days at the ADB, for me the clarion call has been to us as stakeholders, and in particular those stakeholders in developing countries to push their governments harder for more inclusive and transparent decision-making.  For those in developing countries, this kind of approach is not always welcomed by their governments, and in some cases it is expressly opposed. So that pushes the onus back on us here in the developed world.

We must monitor and hold our governments accountable for the public money they spend through the CIFs, ensuring that there is enough space for southern civil society to have their voices heard, and ensure the money is well spent on those who need it most. 

One bureaucrat we spoke to likened the CIFs to “building the boat whilst sailing it”.  I took this to mean the CIFs will make mistakes; they are an ambitious and rapid undertaking of considerable amounts of public and private finance with a new focus of climate, rather than only aid. 

We, as civil society, must do our best to ensure that the overriding messages from this Partnership Forum are accountability, inclusivity and transparency.  CAFOD will be watching and reporting back on how this progresses over the coming months. 

Posted by Liz Gallagher

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Climate: Listening and learning

Being dropped off at the Asian Development Bank’s (ADB)  headquarters in Manila at 7am accompanied by quite severe jet lag meant there was only one thing on my mind. Coffee!

Normally on trips like this, all that is on offer is some hot, brown ditch water masquerading as coffee. Not so in the ADB. They have a Starbucks!

I interned in Parliament for a year or so, and even in the UK government institutions, where perhaps you might expect it, we don’t have a Starbucks. Starbucks, has that Marmite quality, it’s both loved and hated, and its ubiquitousness symbolises the pursuit of expansion and economic prosperity.

I’m here in Manila to attend the Climate Investment Fund’s (CIFs) Partnership Forum. This is a multi-stakeholder dialogue to look at these unique MDB funds (more explanation on the CIFs in my previous blog) and draw lessons from what works and what doesn’t for the future.

But looming over all the discussions here on the CIFs, is the other side to MDB lending. Some strong themes arose throughout the day’s discussion. Notably the importance of continuous capturing of lessons from the CIFs and applying these not only back into the CIFs, but back into bilateral aid programmes and to the MDB’s non-climate friendly portfolios.

Interestingly, southern governments argued for a more ‘endogenous’ approach to low carbon development (something CAFOD has been shouting about too!).

This approach must not simply import technologies from developed to developing countries, but support the ability of developing countries to undertake a wide range of activities such as innovation, production and dissemination of appropriate technologies, taking southern private sector with them in this endeavour.

Another critical theme to emerge throughout the day was the consistent lack of engagement and consultation with stakeholders, including some non-energy related government departments, the private sector, civil society and academia. And here is the problem.

Whilst the MDBs encourage developing countries to consult widely, they are not able to compel them to do so, and subsequently this advice is not always adhered to. In practice, as has happened in various other MDB funded projects, many stakeholders, not just civil society, are sidelined, and sometimes negatively impacted.

So how can we move forward? Well, for starters, these issues need rigorous debate in a neutral setting where stakeholders, MDBs and developing country governments must find a solution that works.

Developing countries must listen to their civil society, but MDBs must be courageous enough to call out when developing countries don’t follow their safeguards, through increased transparency.

What we must see coming from this forum and which is yet to be spelt out clearly, is how the issues and concerns addressed here, will be ploughed back into the design and future modification of the CIFs.

Posted by Liz Gallagher

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Climate: Where will the money come from?

Arriving in Manila is quite an experience. Despite the mild improvements in British weather over the past few days, nothing quite prepared me for the intense heat of this huge and sprawling city.

Manila is a mish-mash of Asian, Mediterranean and American culture – gaudy Catholic statuary and paraphernalia are round every corner, as are the copious shopping malls dotted about the city.

But alas, no time for sight-seeing: it’s straight to work. I’m here to participate in a multi-stakeholder dialogue on climate funding. Continue reading

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