Inter-American Development Bank Governors Challenged to Account for Capital Increase Request

Letter to Governors Demands Transparency and Evidence of Structural Reforms Before Vote on the Capital Increase

WASHINGTON, Feb. 18 /PRNewswire-USNewswire/ -- This week, more than 100 civil society organizations from 18 countries stepped up pressure on the Inter-American Development Bank (IDB), sending a letter urging its governors to explain how the Bank's failing grades in transparency, sustainability, and accountability will be repaired before approving management's request for a significant capital increase.

The public letter was directed at a number of IDB governors, who are reviewing the 9th General Capital Increase (GCI-9) proposal in advance of the vote expected at the Annual Meeting of the Board of Governors slated for March 19-23 in Cancun, Mexico. Initially touted by the IDB to be over $180 billion, heavy criticism has reportedly pushed the Bank's GCI request much lower.

In the letter, civil society organizations continue to question the IDB's eligibility for a capital increase.  The IDB has long refused to share a current draft of its recapitalization proposal or to provide responses to recommended reform. The groups urged the Bank's governors to require the implementation of recommendations that insist on stronger commitments to sustainability, and to results instead of just rubber stamping management's GCI request.

"During the replenishment process, IDB management has consistently shown a lack of candor and seriousness about learning from the past or about incorporating valid civil society concerns," said Vince McElhinny of Bank Information Center, a Washington D.C. based non-governmental organization. "Before they vote on the replenishment, we are asking the governors to tell us where they stand on our proposals for reform and how they are representing the interests of member countries."

The legislatures in each country would have to eventually approve their share of the capital increase commitment as public debt.

Proposed reforms include linkage of staff compensation to evidence-based development outcome; a more comprehensive climate change strategy; one that phases out of fossil fuel lending, and reduces deforestation and protects indigenous rights, among others.

"Despite its 'better bank' rhetoric, the IDB ranks lowest among multilateral banks, lower even than the World Bank, on issues of sustainability, poverty alleviation, and accountability," said Valeria Enriquez of Mexican NGO, FUNDAR.

NOTE TO EDITORS:  For letter see: http://www.amazonwatch.org/newsroom/view_news.php?id=2011.  For interviews contact Vince McElhinny, Bank Information Center, [email protected] or Paulina Garzon, Amazon Watch at [email protected].

SOURCE Amazon Watch; Bank Information Center