The World Bank and the International Monetary Fund were created in the aftermath of World War II, to direct investments to the neediest countries of the world. These International Financial Institutions (IFIs) have changed their roles over the last few decades, becoming international advocates of controversial economic policies in developing countries.
IFIs sit at the heart of the global aid architecture. The World Bank is a major source of finance for developing countries and the IMF has a crucial function “signaling” which countries receive more funding from both official and private sources. These roles yield incredible power for the two institutions which have spread their wings well beyond their original mandates. The governance of the Bank and the Fund is severely skewed towards rich countries which dominate decision-making in these institutions.
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WORLD BANK REFORM STATEMENT
On the occasion of the 16th replenishment of the World Bank International Development Association (IDA), Ekvilib is joining the European alliance of civil society organisations to urge European governments to push for reforms at the World Bank which ensure that IDA lending genuinely contributes to achieving sustainable development objectives.
In the context of the upcoming review on progress to achieve the Millennium Development Goals (MDGs) it is more important than ever that European governments, collectively the world’s biggest development cooperation donors, make sure that aid effectively contributes to halving poverty by 2015.
We urge European governments, the biggest IDA donors, to use their influence wisely for leveraging these recommended reforms at the World Bank during the current IDA replenishment round. They are a fundamental pre-requisite for ensuring that the World Bank becomes an institution that acts in the interests of the world’s most vulnerable people and the global environment.