Norly Grace P. MercadoRegional Coordinator, Mekong/SE

AsiaBank Information Center (

www.bicusa.org)

We partner with civil society in developing and transition countries to influence the World Bank and other international financial institutions to promote social and economic justice and ecological sustainability.

Advocate for greater citizen participation, transparency, and public accountability.

Aim to protect and enhance environmental, social, and cultural rights of locally affected communities.

What do we do?What do we do?

We are not affiliated with the World Bank or any other IFI we do not receive any funding from the IFIs

We are not a bank, we don’t work in finance

We are not a funding organization

“Amplifying local voices to democratize development”

Policy Program: rights, transparency, accountability, participation, structural adjustment, indigenous peoples

Regional Programs: Asia, Africa, Latin America, Europe and Central Asia

Key Partners: civil society (environment, social justice, human rights, labor) in Global South

Staff: Headquarters and Regional Offices (Africa, Middle East, Asia)

• Outreach and Awareness Outreach and Awareness Building Building

• Information ServicesInformation Services

• Capacity Building Capacity Building

• Networking and Coalition Networking and Coalition BuildingBuilding

• Project and Policy Project and Policy Monitoring and Advocacy Monitoring and Advocacy SupportSupport

• Policy and Institutional Policy and Institutional Reforms at the IFIsReforms at the IFIs

Disclosure policies Safeguard policies –ADB IFC social and environmental

(performance) standards Accountability mechanisms

Inspection Panel – World Bank Compliance Advisor/Ombudsman – IFC & MIGA Regional bank mechanisms

Governance Transparency issues Accountability New trends in global development

finance – Financial Intermediaries (FI) Climate change and energy – Climate

Funds Increasing private sector involvement in

development – Private Equity (PE) Funds, Private corporations

IFI advocacy and lobbying – Sustainability Framework, Safeguards Policy, IP Policy,

International and regional bodies – UN, ASEAN

Government bodies – Electoral mechanisms, Legislative lobbying, Government offices

Companies – Commercial Banks (Equator Banks), Corporate Lobbying/Investor relations

IFI advocacy and lobbying WB Board of Directors (Spring and Annual

Meetings) Meetings with Bank Management

Government bodies US Treasury Legislative dialogue

• Sub-regional offices set up in 2005 (South Asia and South East Asia/Mekong)

• Mekong/SE Asia focused on building capacity, deepening relations, and raising awareness

• Linking policy advocacy work and community concerns

Overall, we…

• Provide timely INFORMATION to a wide spectrum of CSOs

• Extend STRATEGIC SUPPORT and training to groups and networks in project monitoring and policy campaigns

• Produce, modify and translate ADVOCACY TOOLS

• LINK NGOs and facilitate engagement with Bank’s Executive Directors and Management

• Frame interventions around transparency, participation and accountability, environment and social safeguards

• Vietnam• Cambodia• Philippines• Indonesia• India• Bangladesh• Int’l/Regional groups

Why do IFIs matter?

Structure and Governance of the Banks

The many roles they play

IFIs are a generic name given to all financial institutions operating on an international level, including:

Multilateral development banks (MDBs), e.g. the World Bank and the Asian Development Bank

Monetary authorities, e.g. the IMF

Export-credit agencies (ECAs) e.g. the Export-Import Credit Bank of each country

Bilateral banks, e.g. JBIC

• The World Bank Group• IBRD (International Bank for Reconstruction and

Development) • Provides debt financing on the basis of sovereign

guarantees• IDA (International Development Agency)

• Concessional loans (interest-free grants)• IFC (International Financial Corporation)

• Primarily to private sector • MIGA (Multilateral Investment Guarantee Agency)

• Provides insurance against certain types of risks, including political risks, to private sector

• ICSID (International Center for the Settlement of Investment Disputes)• Works with government to reduce investment risk

• International Monetary Fund

• Regional Development Banks• ADB (Asian Development Bank)• IADB (Inter-American Development Bank)• AfDB (African Development Bank)• EBRD (European Bank for Reconstruction and Development)

MDBs are largest source of development finance in the world, annually $ 30-40 Billion

In Asia, World Bank and ADB lends a large amount in the form of projects. Its two public lending groups (IBRD and IDA) approved a total of over $13 billion up from the $8 billion loans to Asian governments in 2008. This is more than half the total $24.7 billion WB lending for fiscal 2008, which included loans, credits, guarantees, and grants.

They shape and influence borrowing governments’ development policies through their “non-lending” (reports, seminars, staff) and lending program (“development policy lending” and sectoral loans)

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• Secrecy: Despite progress in making WBG and IMF more transparent, many decisions still taken in secret

• Neo-liberal development model: Emphasizes export-led growth and large-scale private investment as path out of poverty

• Conditionality: “Structural adjustment” and governance rules

• Debt: WB is a bank, IMF a “credit union”; borrowing countries must pay money back

• Corporate welfare: Public money supports policies that favor private sector and directly finance businesses investing in developing countries

• Standard-Setting: WBG and other IFIs claim to establish “best practices” in development; others use their standards as gauges

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The WBG plays a significant role in shaping the development of the extractive industries around the world. According to studies, it is estimated that over 100 countries have reformed their mining and hydrocarbon laws over the last two decades under the guidance of WB reform programs.

Moreover, the WB and IFC on average provide more

than a billion dollars in funding to the extractive sectors annually through direct project investments and other forms of assistance. (Based on taking the average of WBG extractive industry funding of FY2006 - $986 million, FY2007 - $773 million, and FY2008 - $1,692 million. Funding figures were complied by BIC based on project documents disclosed on the WB and IFC websites.)

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WB - Policy reform to facilitate growth of EI sectors Energy Strategy Review

Continued funding for coal projects Increasing role of the IFC & MIGA Facilitator for project related financing (transport)

Direct financing for private investments

Private Equity (PE) Funds No veto clauses, no sign of safeguard

implementation Asia is the dominant destination Offshore approach focuses on extractives, as well

as infrastructure and palm oil plantations Financial Intermediaries (FI)

Current project: PT Weda Bay Nickel Mine (MIGA)

“Amplifying local voices to democratize development”