IDB ignores substance of civil society replenishment recommendations

For the past six months, the the Inter-American Development Bank’s management and 48 Member Countries have been assessing the prospects of a 9th replenishment (General Capital Increase, or GCI-9).  A proposal advanced by IDB in Santiago, Chile on July 2 to discuss an increase in ordinary capital by $100-$200 billion, which would triple Bank annual lending from an average of $US 6 billion since the last replenishment to a projected $16-19 billion per year.

Nine civil society organizations from four countries issued a set of recommendations urging donor countries, in particular the U.S. Government, to insist on stronger commitments to sustainability and evidence-based results before considering the Bank’s unprecedented request.  Based on a series of conversations with Bank management and Directors, in addition to relevant research, a civil society proposal issued in late June outlined leadership steps IDB should take in several critical areas.

The civil society observations and recommendations were developed by nine organizations in four countries that monitor the Bank. Key observations include the Bank’s lack of transparency and adequate poverty reduction strategy, and lack of a comprehensive strategy that effectively integrates environment into its operations.  The Bank is criticized for lagging behind other multi-lateral development banks in many areas including delivering results and giving proper attention to climate change issues.   

IDB President Luis Alberto Moreno delegated the response to the Bank’s external relations unit. The Bank letter stated its disagreement with civil society characterization of the past and present performance, but avoided any substantial, detailed explanation of these differences.  Instead, the Bank letter stated that a “process of consultation and information sharing” for the GCI-9 process is under consideration by the Board of Directors and will be initiated soon.

See also, here.

To see IDB response to civil society proposal: