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WASHINGTON, July 1 /PRNewswire-USNewswire/ -- As the Inter-American Development Bank's Board of Governors meets in Santiago, Chile on July 2 to discuss a proposed $100-$200 billion General Capital Increase, civil society groups issued a set of recommendations urging donor countries to insist on stronger commitments to sustainability and results before considering the Bank's request.
In a memo to bank directors and members of U.S. Congress, a coalition of organizations who monitor the IDB criticized the bank for its lack of transparency, inadequate poverty reduction strategy, and lack of a comprehensive strategy that integrates the environment into its operations. The IDB is said to lag behind other multi-lateral development banks in delivering results and giving proper attention to climate change. Fossil fuel projects continue to dominate the IDB energy portfolio, with less than 10 percent devoted to renewable energy projects.
Groups are urging the U.S., which controls 30 percent of the IDB and the 47 other member countries, to insist on reforms before allowing a capital increase that could double the size of the Bank. Proposed reforms include a full, independent performance review of compliance with the 1994 replenishment conditions, identification of meaningful corporate performance indicators, reorganization and strengthening of the internal and external performance evaluation function, a more comprehensive climate change strategy with robust targets to increase financing for renewable energy, the phasing out of fossil fuel lending, and protection of indigenous rights.
U.S. Secretary of Treasury Timothy Geithner has outlined five central principles necessary for U.S. support. These included good governance and risk management, achievement for results and innovation, and sufficient focus on the poorest countries.
"If the Geithner Principles were applied as the stress test for multilateral banks, the IDB would fail," stated Vince McElhinny, IDB expert for Bank Information Center. McElhinny points to a series of reports that underscore the Bank's conflation of effort and achievement.
The coalition contends that USG needs to apply more leverage for crucial reforms. "The IDB ranks lowest among multilateral banks on issues of sustainability, poverty alleviation, and transparency. The U.S. and other donor countries need to insist on meaningful reforms, before approving billions more in public monies," said Atossa Soltani, Executive Director of Amazon Watch.
See full text of recommendations at http://www.bicusa.org/en/Article.11274.aspx and more background on www.amazonwatch.org.
SOURCE Amazon Watch
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