Tag Archive for: IFIs

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The IDB approved its new Environmental and Social Policy Framework

The process of modernizing the IDB’s environmental and social policies began in January of this year with the first stage of face-to-face and virtual public consultations in the different countries. In Argentina, the face-to-face consultation was held in March in Buenos Aires and the process for submitting comments ended in mid-April. From Fundeps, we prepared and presented to the IDB a document with comments to the MPAS from a gender perspective. In addition, with more than 50 civil society organizations in the region, we sent the IDB a document with recommendations to the MPAS.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

In mid-July, the IDB published the second draft of the MPAS and began the second stage of virtual consultations for a period of 30 days. In this second stage of consultations, we sent a new document with comments on the second draft of the MPAS from a gender perspective.

The process of modernizing the Bank’s environmental and social policies ended on September 16 when the IDB’s Board of Executive Directors approved the new Environmental and Social Policy Framework -MPAS-. From now on, the IDB begins a period of one year to prepare clients for the implementation of the new framework.

With the new MPAS already approved, it is pertinent to analyze which have been the main modifications incorporated during the process, based on the intervention and active participation of an important group of civil society organizations in the region.

Thus, according to the analysis carried out by the Bank Information Center, the main modifications incorporated in the new Framework have been, in part, the product of the recommendations and suggestions made by the CSOs that make up the Working Group on the IDB. In general terms, one of the main changes in the MPAS Political Declaration stands out as the Bank’s commitment to improve stakeholder participation in accordance with the obligation to respect the right of access to information, participation and justice in environmental issues consistent with the principles of the Escazú Agreement.

Another positive point is the incorporation of the principle of “doing good beyond causing harm” which implies increasing the benefits of sustainable development by asking the borrower to report how the project design will improve the environment and the social issue. In addition, the Bank will carry out its own due diligence taking into account the commitment, history and capacity of the borrower in the development and implementation of the financial operation.

In terms of supervision and monitoring, in the event of noncompliance with social and environmental performance standards, the IDB will work with the borrower by providing technical assistance and greater monitoring of the Bank and stakeholders to achieve compliance with the standards of MPAS performance. On the other hand, regarding the complaint and accountability mechanisms, the Bank added a new provision to the MPAS in which it undertakes not to tolerate any type of retaliation against those who express their opinion and / or opposition to a project financed by the IDB. Thus, a complaint mechanism is established at the project level, in which the borrower must take into account physical, sensory, and cognitive needs of the people who participate.

An important addition to the new MPAS is the exclusion list of activities consistent with the commitments adopted by the IDB to address climate change, that is, it will not finance activities that involve the exploration of oil and gas or the production of energy from the use of the Coal.

Main additions to performance standards

General and gender modifications are highlighted in the Performance Standards (ND), namely:

  • PS 1 Evaluation and Management of Environmental and Social Risks and Impacts: must be applied to all projects financed by the IDB. In addition, the borrower must consider risks and impacts related to human rights, gender, natural hazards, and climate change. In identifying risks and impacts, the borrower has to consider the direct, indirect and cumulative environmental and social impacts of the project. It must also identify the various historically disadvantaged cross-cutting groups in Latin America and the Caribbean, such as women, people of diverse sexual and gender orientation, people with disabilities, Afro-descendants, and indigenous peoples, and implement measures to avoid differentiated impacts on them. The description of the types of risks that the standard makes is highlighted, since by mentioning each of the possible risks, it helps to make them visible and makes the borrower responsible for taking action in this regard.
  • PS 2 Work and Working Conditions: special measures for protection and assistance were incorporated and to address violence, harassment, intimidation and exploitation towards women and people with different sexual orientations and gender identity, people with disabilities, children and migrant workers . In addition, the borrower has the obligation to provide a grievance mechanism for workers in which they can express their concerns and so that they can make complaints of sexual and gender-based violence. On the other hand, this standard, despite the recommendations made, is narrated from an androcentric perspective that does not integrate the needs of girls, adolescents, women and LGTTTBIQ + people. This highlights the lack of a gender perspective that is transversal to all performance standards.
  • PS 3 Resource Efficiency and Pollution Prevention: greater emphasis is placed on the mitigation hierarchy and the “polluter pays” principle. The concept and practice of the circular economy is also recognized. On the other hand, this norm recognizes the disproportionate impact that pollution has on women, children, the elderly, and the poor and vulnerable, however, it continues without making reference to norm 9 on gender equality.
  • PS 4 Community Health and Safety: includes the requirement for the borrower to perform a more detailed analysis of the risk assessment and make adjustments to prevent injuries and illnesses when there are risks that may be adverse to the health, safety and well-being of the people. Regarding gender, the standard refers to PS 9 regarding the requirements to address the risks of sexual and gender-based violence in cases of communal conflict and influx of external workers.
  • PS 5 Land Acquisition and Involuntary Resettlement: in the case of this rule, there is inconsistency with respect to the concept of involuntary resettlement found in the glossary and the one described in the rule. The definition of the glossary is the product of the recommendation made by CSOs where it is defined as “involuntary resettlement when the people affected by the project do not have or cannot exercise the right to reject the acquisition of land or restrictions on the use of land that resulting from a physical or economic displacement ”, on the other hand, in this PS it is defined as“ involuntary when the people affected by the project do not have the right to reject the acquisition of land… ”. On the other hand, the recognition of women as owners in the event of displacement has been an advance. Another limitation in the regulation is that it should not be limited to considering the requirements related to Indigenous Peoples, gender equality and stakeholder participation in accordance with PS 7, 9 and 10, but must include them.
  • PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources: highlights that PS 1’s risk and impact identification process must consider project-related cumulative impacts on biodiversity and the ecosystem and identify any significant residual impacts . In addition, it provides a more complete definition of critical habitat as it includes legally protected areas or internationally recognized areas of high biodiversity value. Regarding the issue of the gender perspective, this standard continues to require its mainstreaming and the incorporation of the reference to PS 9.
  • PS 7 Indigenous Peoples: is aligned with internationally recognized standards. In addition, it adds that the borrower must respect the rights of indigenous peoples in accordance with national legislation, international law, or indigenous legal systems. On the other hand, in accordance with participation and consent, the requirement is included to use indigenous consultation and participation protocols to ensure their representation as well as that of indigenous women and people of diverse sexual orientation and gender identities. Also, in the evaluation and documentation of the resources of the indigenous communities affected by a project, it is required that it be inclusive in gender and consider the role of women in the management and use of resources.
  • PS 9 Gender Equality: the term Gender Violence was replaced by a more comprehensive and comprehensive term: Sexual and Gender Violence. The recognition that unpaid care work falls on women is highlighted, which hinders the achievement of gender equality and the economic empowerment of women. Another point to note is that the borrower should evaluate the project for potential gender-based impacts and risks that disproportionately affect women, girls, and sexual and gender minorities, and if risks and impacts are identified, the borrower should conduct a Gender Analysis as part of environmental and social due diligence. On the other hand, regarding consultations, the borrower is required to identify and address the obstacles faced by women and people of different sexual orientation and gender identities, ensuring equitable participation.
  • PS 10 Stakeholder Participation and Disclosure of Information: the new PS 10 is consistent with the implementation of rights of access to environmental information, public participation in environmental decision-making as well as access to environmental justice of the Escazú Agreement. Like PS 1, this rule should be applied to all projects financed by the Bank. Regarding gender, the incorporation of PS 9 is considered a great advance in mainstreaming the gender perspective.

The balance that can be made with respect to the new IDB Environmental and Social Policy Framework, compared to the initial version proposed by the Bank at the beginning of the review process, could be considered quite positive, since it is widely incorporated of the recommendations made by CSOs to MPAS during the consultation process. This, despite the shortcomings and problems presented by the public consultation process carried out by the Bank and which was repeatedly highlighted by CSOs in the region as a necessary aspect to improve.

It remains to be seen whether the positive changes introduced in the new MPAS will effectively result in a strengthening of the institution’s social and environmental standards, a necessary issue due to the context of weakening environmental and social standards that the region is going through, and the challenges and threats looming in this regard in a context of post-pandemic Covid-19 economic reactivation. In this sense, the way in which this new framework is implemented and how its application will work in practice will be key. In this regard, it is a priority for the Bank to improve the way in which it engages and relates to civil society and affected communities, and makes them active participants in the process of implementing the new environmental and social framework.

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Author

  • Sofia Brocanelli

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The United States candidate, Mauricio Claver-Carone, was elected as the new president of the IDB

Through a virtual meeting, the Board of Governors of the IDB elected the North American candidate, Mauricio Claver-Carone, as president of the Bank.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On September 12, the members of the IDB Board of Governors met virtually to elect Mauricio Claver-Carone as the new president of the Bank for the next 5 years. Despite the fact that at the beginning of the election process several candidates presented themselves, the pressure exerted by the United States led the candidate Laura Chinchilla from Costa Rica to step down and later, one day before the elections, the Argentine candidate did, Gustavo Béliz. The strategy of not giving a quorum in the election planned by some of the countries in the region opposed to the North American candidate and the break with the historical tradition in the presidency of the IDB also failed.

Claver-Carone will replace Luis Alberto Moreno on October 1 of this year and will be the fifth president of the Bank. In addition, he will be responsible for the operations of the IDB Group, that is, the IDB, IDB Invest and IDB Lab. The president-elect serves as Deputy Assistant to the President of the United States and Senior Director of Western Hemisphere Affairs in the Security Council of The US was also the US Representative to the IMF and Senior Advisor to the Under Secretary for International Affairs in the US Department of the Treasury.

For a candidate to be elected president of the IDB, they must receive the majority of the total votes of the countries that are members of the IDB (48 member countries in total) and the support of at least 15 of the regional member countries (with Canada and USA the total of regional member countries is 28). In this case, Claver-Carone won with 67% of the shareholders in total and with the support of 23 of the 28 members of the region. The president is elected by the Board of Governors, the highest authority of the IDB. Each member country of the Bank has a Governor whose voting power is proportional to the capital that his country has in the IDB. Governors are generally the finance ministers, central bank presidents, or other public officials of member countries.

From civil society organizations, last month we issued a statement to the Bank’s Governors where we expressed our concern about the presidential elections of the Institution, the rejection of the nomination of the North American candidate and the lack of opening of the election process since the participation of social organizations and communities was considered. In the statement, we also highlighted the conditions that the new president should have, such as:

  • Strong commitment to multilateralism.
  • Extensive experience and knowledge of the context of Latin American and Caribbean countries.
  • Clear commitment to transparency, accountability and the participation of all communities and civil society in the Bank’s actions.
  • Knowledge and experience in development agendas that show a commitment to the public interest, the protection and promotion of human rights, gender equality, the need to quickly face the effects of climate change and implement a sustainable development model focused on indigenous peoples and communities.

What remains to be known is whether the president-elect, Mauricio Claver-Carone, meets all the aforementioned conditions and whether he will be able to distinguish himself from the presidency of Luis Alberto Moreno, marked by the lack of dialogue with civil society and affected communities. Will Claver-Carone be capable of opening spaces for dialogue with civil society and communities as well as responding adequately to the demands of Latin American and Caribbean countries in the context of the economic, social and climate crisis they are experiencing?

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Author

Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Regional statement regarding the IDB presidential elections

Through a statement addressed to the Governors of the Inter-American Development Bank, civil society organizations, peasant communities, indigenous peoples and Afro-descendants and people with disabilities in Latin America and the Caribbean, we express our concern regarding the presidential elections of the Institution. In particular, we express our rejection of the decision of the United States government to present a North American candidate to preside over the Bank, and of the election process itself, which does not give rise to the participation of social organizations and communities.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On September 12 and 13, the Inter-American Development Bank -BID- will elect a new president who will replace Luis Alberto Moreno, after 15 uninterrupted years of management. The elections will take place through an extraordinary meeting of the Board of Governors to be held virtually. Different countries in the region have nominated candidates, such as Argentina, which nominated Gustavo Béliz, and Costa Rica, Laura Chinchilla. However, what is causing concern in the current IDB presidential selection process is the nomination by the US of candidate Mauricio Claver Carone. This, in addition to going against the unwritten IDB rule that the Institution must be led by a Latin American representative, threatens the decision-making capacity of the Bank’s borrowing countries, given that the United States has the highest percentage of capital and votes within the Institution.

In a context marked by the crisis of multilateralism that the world is going through; the socio-ecological and climatic crisis that has a particularly serious impact on Latin America; the historical problems of inequity, inequality and poverty in the region; and the economic, social and health impacts and repercussions that the Covid-19 pandemic is generating, the transition in the presidency of the IDB is key for the future of the region.

Therefore, today more than ever the IDB requires a qualified leader who is capable of critically positioning himself with regard to the role that the Institution plays in the face of the complex panorama that the region is experiencing, and who is predisposed and capable of promoting a model different development. In this sense, the person appointed to the presidency of the IDB should necessarily meet a series of requirements that include, among others, the following:

  1. A clear and express commitment to multilateralism, at a time when the legitimacy of international institutions is being questioned and attacked;
  2. Extensive experience and knowledge of the reality of the countries of the region and the challenges they face in the current context;
  3. A clear commitment to transparency, accountability and the participation of communities, indigenous peoples and civil society in the actions of the Institution;
  4. Knowledge and experience in development agendas that reflect a commitment to the public interest, the protection and promotion of human rights, gender equality, the need to immediately face the effects of climate change and to bet on a model truly sustainable development focused on communities and indigenous peoples.

At the same time, the statement, to which more than 50 organizations joined, emphasizes that the election must go beyond voting and open spaces for dialogue between candidates and civil society and communities. After 15 uninterrupted years under the leadership of a presidency that impregnated particular characteristics, and in many cases questionable, the management and actions of the Bank, a unique opportunity is presented to learn more about the positions and proposals of the different candidates. facing the concerns and demands of communities and civil society; and in relation to the prevailing context in the region.

We hope that the IDB will rise to the current circumstances and take advantage of this opportunity to ensure that whoever becomes president of the Bank is truly the most qualified and appropriate person to lead it in the face of the complex moment the region is going through.

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Contact

Gonzalo Roza, gon.roza@fundeps.org

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Statement in the face of the election of the new president of the IDB

Through a statement addressed to the Governors of the Inter-American Development Bank, civil society organizations, peasant communities, indigenous peoples and Afro-descendants and people with disabilities in Latin America and the Caribbean, we express our concern regarding the presidential elections of the Institution. In particular, we express our rejection of the decision of the United States government to present a North American candidate to preside over the Bank, and of the election process itself, which does not give rise to the participation of social organizations and communities.

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Comments on the second draft of the IDB Environmental and Social Policy Framework, from a gender perspective

On Tuesday, August 5, we sent the IDB a new document with observations and comments on the second draft of the Environmental and Social Policy Framework from a gender perspective.

Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.

In December 2019, the Inter-American Development Bank -BID- published the draft Environmental and Social Policy Framework -MPAS- to modernize its environmental and social policies. In January of this year, the face-to-face and virtual public consultations began, where Fundeps was present. In April, we sent a document with comments and observations on the draft MPAS from a gender perspective, which had the input of other civil society organizations. In this document we point out, above all, the lack of mainstreaming of the gender perspective in all the performance standards of the draft MPAS.

At the beginning of July, the Bank published the second draft of the MPAS in which it incorporated some of the recommendations sent by stakeholders (civil society, indigenous communities, Afro-descendant community) and began the second phase of the process for sending comments that It ended on Tuesday, August 5. From Fundeps, we analyzed this second draft of the MPAS and sent a new document with observations and comments from a gender perspective, with the aim of incorporating issues that we consider fundamental when considering the human rights of girls, adolescents, women and LGTTTBIQ + people. in the new social and environmental framework of the IDB.

Among the main points identified, we find positive aspects that have been incorporated as the reference to the Performance Standard -ND- 9 on gender equality in PS 1 (Evaluation and Management of Environmental and Social Risks and Impacts), PS 2 ( Labor and Working Conditions), PS 5 (Land Acquisition and Involuntary Resettlement) and PS 10 (Stakeholder Engagement and Disclosure of Information). Another aspect to highlight is the incorporation of ILO Convention 190 against violence and harassment in the workplace and Convention 100 on Equal Remuneration.

However, there are still many aspects to be incorporated that we believe are essential to guarantee gender equality and the mainstreaming of the gender perspective in the projects financed by the Bank. Among the necessary issues to be added to the new MPAS is the Bank’s duty to explicitly and transversally incorporate current and future international Treaties, Agreements and Conventions that contemplate the rights of girls, adolescents, women and LGTTTBIQ + people. In addition, the Bank as the main person in charge must mainstream the gender perspective throughout the Framework to avoid gender blindness.

A worrying issue is the replacement of the Policy on Gender Equality in Development by PS 9. Here the Bank should maintain the validity of the Policy as a complement to PS 9 on Gender Equality. Finally, we emphasize the need for the IDB to incorporate the great diversity of gender-gender identities, since the MPAS does not mention LGTTTBIQ + people, but rather identifies them as sexual and gender minorities. Therefore, we insist that LGTTTBIQ + people are specifically enunciated to ensure visibility and recognition of their existence and rights.

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Observations on the second draft of the IDB Environmental and Social Policy Framework from a gender perspective

In early July, the Inter-American Development Bank (IDB) published the second draft of the Environmental and Social Policy Framework -MPAS- and began the second phase of the 30-day consultation process. This document was produced within this framework and contains observations and comments on the second draft of the MPAS from a gender perspective.

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The end of a historical tradition in the IDB presidency?

In June, the United States nominated, for the first time since the institution’s creation in 1959, a North American candidate for the presidency of the Inter-American Development Bank (IVD).

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

In mid-June, the President of the United States, Donald Trump ,  As candidate for the presidency of the Inter-American Development Bank -IDB-, Mauricio Claver-Carone, current advisor for Latin America of the National Security Council, was nominated.

The nomination jeopardizes the old IDB tradition that the agency’s presidency always rests with Latin Americans, while the vice presidency is held by an American. Thus, since its creation in 1959, only four presidents have held the presidency of the Bank, all of them from Latin America: the Chilean Felipe Herrera (1960-1970), the Mexican Antonio Ortiz Mena (1970-1988), the Uruguayan Enrique Iglesias (1988 -2005) and the Colombian Luis Alberto Moreno (2005-2020). Although the IDB’s Articles of Agreement do not establish any determining factor in relation to the nationality of the person who must hold the presidency, there is an unwritten norm from its very creation by which the body must be directed by a person from the region. It was even one of the conditions for which it ended up accepting that the Bank’s headquarters be in Washington DC. This type of unwritten norms regarding the nationality of its presidents can also be found in other multilateral institutions. For example, the presidency of the World Bank has always been held by a person from the United States, the International Monetary Fund – IMF – has historically been chaired by a representative of Europe and, as mentioned, the IDB by a person from Latin America.

The new IDB president, who will be elected by the IDB Group Board of Governors on September 15 in Barranquilla, Colombia, will replace Luis Alberto Moreno, who has been in the Bank’s presidency since 2005. In addition, with the nomination of The US reduces the chances for the Argentine Gustavo Béliz, since Latin American countries such as Brazil, Ecuador, El Salvador, Jamaica, Colombia and Uruguay support the Claver-Carone candidacy.tional Security Council.

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Authors

  • Gonzalo Roza 
  • Sofía Brocanelli 

Contact

Gonzalo Roza, gon.roza@fundeps.org

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The BRICS Bank designed its new president: the Brazilian Marcos Prado Troyjo

In a special meeting, the Board of Governors of the New BRICS Development Bank elected Brazilian Marco Prado Troyjo as the new president of the multilateral institution.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Board of Governors of the New Development Bank -NDB- of the BRICS met in a special way through videoconference to elect the new president of the bank: the Brazilian Marcos Prado Troyjo, who will take office on July 7. Its vice president will be Anil Kishora from India and he will serve as the bank’s chief risk officer. The presidential term is 5 years and the presidents are elected on a rotating basis between the member countries of the BRICS, that is, between Brazil, Russia, India, China and South Africa.

Troyjo was vice-minister of economy in Brazil, served as special secretary for Foreign Trade and International Affairs, and represented the Brazilian Government on the boards of multilateral development institutions. In addition, he chaired the Brazilian External Financing Commission and the National Investment Committee. He was also co-founder and Director of BRICLab at Columbia University, United States, and is a member of the World Future Council on International Trade and Investment of the World Economic Forum (WEF).

Marcos Troyjo will replace the previous president of the KV Kamath Bank of India, who has held the presidency since 2015 and is responsible for the NDB’s response to the COVID-19 pandemic, through the launch of the Emergency Program Loan Product COVID-19. The new president of the NDB will have the challenge of facing the post-pandemic economic consequences, reactivating the infrastructure projects and with it the activity of the multilateral bank. It remains to be seen also what direction the New Development Bank will take, but also the same space of the BRICS after the pandemic, given the loss of influence that the forum has experienced in recent years and the criticism it received, including from from the president of Brazil himself, Jair Bolsonaro.

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Contact

Gonzalo Roza, gon.roza@fundeps.org

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We demand participation and transparency in the change of direction of the MICI

Before the departure of the current Director of the MICI, Victoria Márquez Mees, at the end of June, a group of civil society organizations requested, through a letter sent to the IDB Executive Board, the inclusion of interested parties and the transparency in the selection process of the new Director of the Mechanism.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On June 30, the current Director of the MICI, Victoria Márquez Mees, ends her term as head of the IDB accountability mechanism, a post she has held since 2015. In this way, the IDB is beginning the selection process from the new Director, therefore, together with a group of civil society organizations, we sent a letter to the Bank’s Board of Executive Directors requesting the inclusion of civil society and interested parties in said selection process. It should be noted that the last selection process carried out by the Bank was not very transparent and did not include civil society or other external stakeholders.

In line with the above, we recommend that the Bank create opportunities and encourage the participation of civil society and external stakeholders in the selection process. Especially considering that the MICI policy establishes that the Board will convene a selection panel to identify candidates. Furthermore, the inclusion of external stakeholders in the process of selecting the Director of accountability mechanisms is a good practice carried out by various international financial institutions such as the European Bank for Reconstruction and Development, for example.

In line with the process of changing the mechanism’s direction, on June 12, together with a group of civil society organizations, we sent a second letter to the IDB requesting that the External Consultative Group -GCE- of the MICI be part of the process of selection. The participation of the CME will bring greater transparency to the process since the members of the Group are interested parties in the Bank who have knowledge about the region, the operation of the MICI and on issues related to transparency, sustainability and accountability. In addition, the inclusion of CGE members in the selection process means reporting your experience and qualified perspectives on the legitimate topic and the selection process and identifying the best possible candidate.

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Contact

Gonzalo Roza, gon.roza@fundeps.org 

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Analysis of the Second Plan Joint Action between Argentina and China (2019-2023)

The following document describes and analyzes the Second Joint Action Plan agreed between Argentina and China (2019-2023) at the G20 summit in 2018. This Plan reinforces the comprehensive strategic partnership between both States and details the actions that will be carried out carried out in different areas such as politics, trade, culture, finance, communications, among others.

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Status of the emblematic projects with Chinese financing in Argentina

China’s growing interest in financing infrastructure projects in the region has led Argentina to sign a multiplicity of cooperation agreements with this country. For this reason, we have identified a series of projects with Chinese financing which we believe are relevant for their magnitude and for the economic, social and environmental impacts they can generate. Thus, in this document, the status of the situation, amounts committed and actors involved in the selected projects considered emblematic are detailed (only spanish).

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The World Bank, the IDB and the CAF commit financing for Argentina in the context of the pandemic

In recent weeks, the World Bank approved a project for 35 million dollars and the IDB and CAF have committed amounts of 1,800 and 4,000 million dollars respectively for projects that allow Argentina to face the effects of COVID-19 . These are fast-disbursing loans that, while important to alleviate the economic, social and health consequences of the pandemic, raise a series of doubts regarding the effective fulfillment of the requirements and conditions necessary for their approval.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The effect of the pandemic on the world economy can be reflected in the paralysis of international trade and economic activities. Furthermore, the situation of uncertainty has led to the tightening of external financing for the States, which at this moment are essential to face the health emergency, which requires heavy investments in materials and specific medical equipment.

Faced with this scenario, various International Financial Institutions such as the World Bank Group, the Inter-American Development Bank -IDB-, the European Investment Bank -BEI- or the Development Bank of Latin America -CAF-, among others, have put Quick disbursement financing available to countries for projects to cope with the effects of the pandemic. On April 2, the World Bank -BM- approved an emergency loan of $ 35 million for Argentina, with the aim of strengthening the health system by purchasing equipment and medical supplies to minimize the impact of the coronavirus on the country. This financing is part of the $ 14 billion fund that the World Bank created to provide assistance to countries that must face the consequences on their health and economic systems due to the outbreak.

Fuente: Página 12

In addition, the World Bank promised to cooperate with the Argentine Republic in the implementation of the Emergency Project for the Prevention and Management of the Disease by COVID-19. The purpose of the same is to strengthen the preparation and response against the pandemic and the adaptation of the country’s national public health systems. The execution of the emergency project will be in two stages: the first consists of the emergency response efforts of COVID-19, which consists of two sub-stages: on the one hand, detection, confirmation, follow-up of contacts, registration and reporting of cases and on the other, the strengthening of health systems. The second stage is the implementation, monitoring and evaluation of the project.

Likewise, on May 7, the Inter-American Development Bank (IDB) announced a loan of 1.8 billion dollars for the country to alleviate the economic, social and health consequences of the COVID-19 crisis. It is the largest amount disbursed by the IDB to Argentina in the last 10 years. The support provided by the IDB is linked to care for the health system, transfer to the social protection network for the most vulnerable, and economic and employment recovery, mainly from micro, small and medium-sized enterprises (MSMEs).

Fuente: Infobae

The programs of the public area of ​​the IDB Group linked to Argentina with the objective of responding to the emergency of COVID-19 and that will be approved this 2020 is 1,000 million dollars, while the other 600 million dollars correspond to current projects.

In an official statement, the Presidency explained that the first of the projects will allocate $ 470 million for a public health program to support the response to the coronavirus, of which 300 million were disbursed this year. The objective is to ensure access to the health system for 17 million people. Similarly, with the intention of supporting the productive sector and promoting job creation, 500 million dollars will be allocated, for which 300 million were disbursed this year. It is estimated that the amount will go to the aid of 30 thousand micros, small and medium-sized companies.

In addition, 600 million will be allocated with the goal of serving the most vulnerable population through a social protection program created in conjunction with the IDB. Of this total, 400 million will be disbursed this year with the purpose of transferring resources and subsidies to vulnerable sectors. It will support around 3 million companies.

For its part, the Development Bank of Latin America (CAF) has stated that in the current context, each State must adopt economic measures that respond to the situation of each country, without neglecting the productive sector and the most vulnerable social sectors. To contribute to these spaces, CAF has deployed an emergency loan package for each country of up to $ 50 billion to serve public health systems; We also allocate emergency disbursements of 2.5 billion dollars per country to SMEs that involve different aspects of the financial portfolio. In addition, non-reimbursable cooperation resources have been made available to donate essential supplies to the health sector.

The Argentine president held talks with the CAF executive (Luis Carranza Ugarte) exchanging concerns and initiatives to respond to the crisis. The institution committed to the Argentine Government to carry out the execution of technical cooperation projects for more than 4,000 million dollars within the next four years aimed at economic reactivation and social aid at different government levels. For the current year, specific financing will be allocated to strengthen the emergency in the provinces ($ 40 million), promote social policies ($ 30 million), develop investments in infrastructure, including educational establishments, repair and construction of routes. , and sanitation (USD 900 million dollars).

In this way, it can be seen that the Financial Institutions have made fast-disbursing funds available to the national government to be able to deal with the effects of the pandemic in an executive manner. And Argentina is not the only case, since more than 130 projects have been approved in countries in Latin America, Europe, Asia and Africa for a total amount greater than 25 billion dollars, according to a mapping of projects carried out by the Early Warning System.

While recognizing the need for countries to quickly have resources to face the economic and social effects of the pandemic, it should be noted that most of these projects are being prepared, discussed and approved in an accelerated manner, in a few weeks, when they are generally processes that take several months since they must go through a series of instances and meet a series of requirements for their approval and start-up. Requirements that not only contemplate economic-financial issues, but also in terms of transparency, public participation, accountability, due diligence and social and environmental sustainability of projects. Therefore, it is questionable whether such requirements are effectively being contemplated and applied in these fast disbursement projects by the Financial Institutions and governments involved.

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Authors

  • Ailín Toso
  • Mariano Camoletto

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