Communities and civil society advocate to influence the BID meeting in Chile

At the BID’s 2025 Annual Meetings in Chile, organizations and communities affected by projects financed by the institution are demanding greater transparency, participation, and respect for human rights and the environment, in response to the impacts of megaprojects in the region.

“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”.

Chile is hosting the sixty-fifth Annual Meeting of the Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest. The event began on March 20 in Punta Arenas, Magallanes, as part of the Investment Forum and the meeting of authorities, and continues in Santiago until March 30. It brings together the Ministers of Economy, Treasury, and Finance of the Bank’s 48 member countries, who define the main financing policies and strategies for the region.

In this context, communities affected by IDB-financed projects and civil society organizations are organizing to present our demands and highlight the resistance to the development model promoted by the institution.

The main demands include:

  • Full and understandable access to information about projects and their impacts
  • Effective participation of affected communities in decision-making
  • Protection of human rights and nature defenders to avoid retaliation
  • Financing aligned with climate justice and human rights
  • Guaranteeing the prevention, mitigation, and reparation of harm caused by their investments, through policies or frameworks for remediation and responsible exit

For years, resistance networks have denounced the harmful effects of projects financed by the BID and other Multilateral Development Banks (MDBs). Wind farms, lithium and copper mines, and mega-infrastructure projects have transformed ecosystems and ways of life without consultation or consent from affected communities. In Punta Arenas, the site of pre-Annual Meetings activities, opposition is growing to green hydrogen mega-projects, promoted without real public debate or consideration of Indigenous and local rights.

The BID Working Group, a network of civil society organizations of which we are a part, has been key in opening up advocacy spaces within the Annual Meetings. Thanks to their pressure, the Bank committed to reintroducing civil society participation in 2023, having eliminated it in 2013. The 2025 edition in Chile is a crucial opportunity to strengthen coordination among affected communities and reinforce advocacy strategies to challenge the BID’s role in the region.

The Voice of Communities and Organizations

  • On a Just Energy Transition and the Protection of Indigenous Peoples and the Environment:

“They need to study the places where they promote projects and who lives there. They should take the time to understand local customs and ways of life. It is not right for them to arrive in a place and disrupt communities that are used to living in peace, caring for and protecting nature and biodiversity.” — Spokesperson for the Chango People, Antofagasta (requested anonymity)

  • On the IDB’s Access to Information Policy:

“The BID must ensure effective and timely access to information about the projects it finances so that affected communities and populations can fully understand the status of a given project and participate in decision-making in an informed manner.” — Gonzalo Roza, Coordinator of the Global Governance Area, FUNDEPS (Argentina)

  • On the Protection of Civic Space:

“Multilateral Development Banks (MDBs) have a responsibility to respect human rights in their operations and to use their influence to ensure that their clients—governments and companies—create and maintain an enabling and safe environment for the exercise and defense of those rights. The BID Group must guarantee the effective implementation of its policies and improve its practices to fulfill this responsibility, ensuring they are systematically enforced.” — Suhayla Bazbaz, Director, Community Cohesion and Social Innovation–CCIS (Mexico)

  • On Remedy and Responsible Exit:

“Repairing the harm caused by the projects it finances must be a priority for the BID Group. It is time for the Bank to be at the forefront of best practices and policies, following the example of other development banks. The International Finance Corporation (the private sector arm of the World Bank) has already published its Responsible Exit Principles and is about to approve the Remedy Framework—two instruments aimed at preventing, mitigating, and repairing the harm caused by its investments. Like any financial institution, the IDB has the responsibility to remedy the harm inflicted on communities and the planet.” — Luisa Gómez, Senior Attorney, Center for International Environmental Law–CIEL (United States)

 

Agenda for Resistance and Advocacy in Chile

Civil society organizations and affected communities have outlined an action plan that includes:

  • Workshops and meetings in Santiago and Punta Arenas with local organizations, affected communities, and strategic allies to analyze the IDB’s impact on the energy transition and development financing.

  • A public discussion on the role of development banks in a just energy transition, as well as Chile’s case in the green hydrogen and mining industries.

  • Advocacy activities during the Annual Meetings aimed at creating spaces for dialogue with BID representatives and other key stakeholders.

  • Engagement with local and international networks to strengthen resistance strategies and globally highlight the impacts of projects promoted by the Bank.

The fight of communities against extractivist projects promoted by the BID is not new, but in a context where financing for strategic sectors such as energy and mining is expanding, amplifying our voices and demanding a just energy transition is more urgent than ever—one that prioritizes community rights and territorial protection.

Contact
Gonzalo Roza, gon.roza@fundeps.org

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We participated in the 13th United Nations Forum on Business and Human Rights

On November 25, 26 and 27, we participated in the 13th United Nations Forum on Business and Human Rights, which took place at the United Nations headquarters in Geneva.

“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 United Nations Annual Forum on Business and Human Rights is the platform for multilateral dialogue that assesses the progress of States and companies in implementing the three fundamental pillars of the Guiding Principles on Business and Human Rights (GHR): Protect, Respect and Remedy. In this way, every year it brings together key actors from governments, international organizations, civil society and companies, creating a broad space for dialogue.

The 13th edition of the forum, entitled “Making the ‘Smart Mix’ for Human Rights in Business Effective”, presented the perspectives of different stakeholders on how to implement a “smart mix” of national, international, voluntary and mandatory measures to strengthen the protection and respect for human rights in business activities. It analysed what has worked so far and what has not, highlighting what is still needed to make the changes proposed by this approach effective, especially for rights holders. The forum also sought to highlight positive practices that have enabled progress in the protection of human rights in the actions of States, companies and other actors.

Among the key themes reflecting important challenges, the Just Energy Transition was highlighted, where the need for companies to implement sustainable practices in a concrete manner and backed by verifiable commitments was discussed. In addition, the importance of recognizing indigenous communities as fundamental actors in the protection of their lands and resources was highlighted, although significant challenges persist in ensuring that their rights are effectively respected in the face of business activity. In this context, the role of development financial institutions was also addressed, emphasizing their responsibility to ensure that the projects they finance comply with human rights standards. Finally, Strategic Climate Litigation was mentioned, which has gained relevance as a tool to hold companies accountable for their negative impacts on climate change and human rights.

One of the key messages that civil society wanted to highlight during the forum was that the protection of human rights should not be seen only as a legal obligation, but as a collective responsibility. Governments, international organisations, civil society and businesses must work together to overcome challenges and achieve meaningful change.

 

More Information

 

Author

Julieta Boretti

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Necessary debates: Fundeps held a discussion on the Energy Transition in Argentina

The event organized by Fundeps (Foundation for the Development of Sustainable Policies), CAUCE Foundation (Environmental Culture – Ecological Cause), FARN (Environment and Natural Resources Foundation) and Siglo 21 University, held on November 11, was a meeting of analysis and debate on the main challenges facing Argentina in the context of the global energy transition.

“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 event, which was held in a discussion format, was organized into thematic panels, one of which was: “The role of China, multilateral banking and transnational corporations in the Argentine energy transition” with the participation of Dr. Virginia Busilli and Lic. Maitén Fuma (UCC), Valeria Enderle (CAUCE Foundation), Francisco Zanichelli (UNC) and Carolina Juaneda (Bank Information Center), moderated by Matías Cena Trebucq (FARN). The second panel, “The challenges of lithium exploitation in Argentina in a context of investment incentives and environmental deregulation”, was hosted by Edgardo Litvinoff (Red RUIDO), María Laura Carrizo Morales (Fundeps), Leandro Gómez (FARN), Federico Trebucq (UES21, CONICET), moderated by Paula Hernández (Fundeps).

On this occasion, Fundeps also presented the report “The exploitation of lithium in the high Andean salt flats: a socio-environmental analysis based on the Argentine case”, which aims to comprehensively address the different conceptual, legislative and discursive perspectives and components that intervene in this context of global energy transition. It also addresses the consequent acceleration in the demand for lithium in our country and region for an informed discussion.

Not every energy transition is a fair energy transition

The race to control the supply chain of so-called critical minerals, or minerals for the energy transition, opens a new chapter in the global geopolitical dispute. Countries in North America, Europe, and Asia, particularly China, are competing not only to dominate the technologies of the final products, but also for access to the deposits of these minerals. At the same time, it is evident that the search for developing “green solutions” is the politically correct narrative today, but is there really progress towards a fair energy transition in social and environmental terms? What roles do the global south and the global north adopt in this new “green” dynamic? What place do communities have in this process? These were some of the questions addressed in the discussion.

Argentina is today the world’s fourth largest producer of lithium and has approximately 50 projects in different phases. With the focus on generating foreign currency required to repay the external debt, provincial and national governments prioritize these investments without carrying out the corresponding studies to determine whether the operations can be carried out without causing irreversible damage to the environment and the communities that have lived there for hundreds of years. The loss of biodiversity, ways of life, knowledge and Andean cultures not only turns these territories into sacrifice zones for the hyper-consumerist model of the Global North, which does not seek to reduce its demand for minerals and nature, but also reinforces existing inequalities and blocks the possibility of thinking about a paradigm shift that places the care of the lives of people and ecosystems at the center, and that teaches us to live within planetary limits.

Undoubtedly, the consequences of the increased demand for lithium extraction and production in this “green race” generate debates of a social, environmental, legal, discursive and ideological nature, as the different meanings and objectives of the different actors involved come into dispute. During the more than two hours that the discussion lasted, experts and representatives of civil society, academia and journalists from Córdoba and other provinces debated and exchanged their opinions on the impact of lithium mining on the environment, the economy and local communities, making it clear that not every energy transition is a fair energy transition and that the extractivist logic reproduces the historical roles of the countries of the Global North and South and also replicates extractivist practices and human rights violations of local and indigenous communities, while reinforcing the vicious cycle of continuing to exploit nature.

 

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Contact

Gonzalo Roza, gon.roza@fundeps.org

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The IDB approves a New Access to Information Policy

The Inter-American Development Bank (IDB) took the final step of a process that lasted several years and culminated with the approval of a new Access to Information Policy (PAI) by the Board of Executive Directors.

“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 new policy, approved on July 26, 2024, which updates the current IDB policy, will go into effect on September 1, 2025

At Fundeps, together with other regional organizations, we actively participate in the process of updating and adapting the IDB’s PAI, sending comments and suggestions to each of the previous versions, as well as participating in various public consultations to strengthen the right. access to information and transparency in the Bank.

As improvements introduced to the new Bank Policy, mention can be made of the possibility of making anonymous information requests, the reduction in the IDB’s response times to information requests and the work that the institution is doing to increase the usability of the information. and the use of more accessible formats. Even so, it is imperative to consider that access to Information and Communications Technologies (ICTs) is not universal or uniform.

Likewise, there are essential aspects that the PAI, or its next updates, must incorporate, such as:

  • The approach to access to information as a fundamental human right and, therefore, a pillar of the PAI itself.
  • The harmonization of the Access to Information Policy with the Escazú Agreement.
  • Eliminate ambiguities in the language of the standard, mainly in the “Exceptions” section, which must be more precise and establish clear criteria for its application.

Likewise, it is worrying that some criteria and parameters that will make the PAI effective are addressed in the Implementation Guidelines. In this way, the effectiveness and strength of the PAI will depend greatly on these Guidelines, which do not require mandatory compliance, as the PAI itself does.

Likewise, it should be mentioned that there were significant delays in the PAI review process. At the end of 2019, the IDB began this process that was suspended months later. Subsequently, in April 2022, it was resumed and the Bank presented a new policy proposal to the Board of Executive Directors, which was approved for public consultation with interested parties. It was only in January 2024 when the final version of the New Information Access Policy was approved, which did not take into account many of the comments and suggestions raised by civil society within the framework of the in-person and virtual consultations organized by the own bank.

As a next step, after the approval of the Access to Information Policy, the Implementation Guidelines for its application will be prepared, which, according to the IDB, will be circulated in a timely manner for comments from the public and civil society organizations. Given the great importance of these Guidelines, especially in this case, we hope that this will be the case and we reiterate the importance of the Bank placing people at the center and using the possibility of making effective and full the exercise of the right of access to information , also strengthening in this process the effective participation of civil society organizations, communities and people affected by their projects and populations in vulnerable situations.

 

More Information

Contact

Gonzalo Roza, gon.roza@fundeps.org

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China-driven financial initiatives: access to information and accountability

Much of what happens in Argentine foreign policy is linked to China, hand in hand with its growing global influence, which is why it is important to know initiatives such as the Asian Infrastructure Investment Bank and the Belt and Road Initiative. , in which China is its main promoter. At Fundeps we share documents with basic and accessible information about these initiatives, placing emphasis on practical resources to access information and their accountability mechanisms.

“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 Belt and Road Initiative (BRI) represents China’s flagship global connectivity and infrastructure development program that aims to boost trade and new political and economic ties with participating nations, primarily emerging and “developing” countries. ”. For its part, the Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank created in 2015 at the initiative of China that currently has more than 100 member countries around the world and finances projects in other regions, such as Latin America and the Caribbean or Africa.

The AIIB is closely linked to the Belt and Road Initiative not only because the processes of formation of these two instruments were promoted by Chinese President Xi Jinping and occurred simultaneously, but also because the AIIB constitutes the main tool financing for projects that are part of the IFR. Likewise, both are part of a process of geopolitical reconfiguration where the center of gravity of the world economy turns towards the Asia Pacific. Furthermore, both have been the subject of criticism since their inception in relation to the negative environmental and social impacts that their projects have generated and the lack of transparency, accountability and citizen participation in their design and implementation.

The role that the AIIB and the IFR play – and will play in the medium-short term – in Argentina is much closer and more tangible than we believe: although they seem like initiatives or actors that are distant and unrelated to the local reality, through Their actions promote or facilitate the implementation of large infrastructure and energy projects in the country that, in turn, have – or may have – a direct or indirect impact on people’s daily lives and may affect social and/or environmental rights. , especially from the populations and communities linked to the projects. In fact, there is already a first approved project in Tierra del Fuego that will be financed by the AIIB for an amount of 65 million dollars and, within the framework of the IFR, there are various projects committed in our country. For this reason, it is essential to monitor them, know how to access information about the projects and how to file a complaint with the Bank’s accountability mechanism.

In addition to this and given the frequent lack of transparency of Chinese banking and the general lack of knowledge about it, at Fundeps we share these updated brochures with summarized information about the AIIB and the Belt and Road Initiative. We also added instructions on how to make a complaint to the Project Affected Persons Mechanism (PPM), the AIIB’s accountability mechanism.

How does the situation influence?

During the current government of Javier Milei, diplomatic ties between both countries have been strained due to the reconfiguration of the new administration’s foreign policy, with greater geopolitical alignment with the United States and the West. We can also mention certain measures such as the decision of the Argentine government to visit the Chinese space base in Neuquén or renounce Argentina’s membership in the BRICS bloc, the brake on infrastructure works with Chinese financing or even statements by the President himself or of Foreign Minister Diana Mondino. This has been reflected, among other things, in the difficulties in the negotiations to renew the swap with China – currency exchange between the central banks of both countries – or in the weakening of the commercial link, which has moved China to fourth place. place as Argentina’s trading partner, currently positioning itself behind Brazil, the European Union (EU) and the United States.

However, it is worth highlighting that the link between Argentina and China continues to be very important, and will continue to be so in the future, regardless of the government in power.

A bilateral relationship of a strategic nature

The bilateral relationship between the People’s Republic of China and Argentina has been strengthening in recent decades and has acquired greater relevance since the 2000s, becoming established, almost 10 years ago, as a Comprehensive Strategic Association. It includes an expansion in the areas of cooperation and covers not only economic and financial aspects but also political, commercial, technological, cultural, health and investment matters. This strengthening of ties was reflected in the incorporation of Argentina to the two initiatives mentioned here.

The signing of a Joint Declaration in 2004 and the Comprehensive Strategic Association in 2014 have been, at the diplomatic level, two unavoidable antecedents to understand Argentina’s entry into the IFR and the AIIB. Given the continuity and long-term projection of the Sino-Argentine link, it can be said that Argentina’s entry into the IFR (in 2022) and the AIIB (from 2021, as a non-regional member), are consistent with the rapprochement and consolidation of bilateral relations since their normalization in 1972 and crystallize this long-standing bond between both countries, posing both opportunities and challenges for our country.

 

 

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Various sectors of Córdoba met to talk about the rollback of rights

This Friday, May 24, the meeting “Córdoba has impact: Conversation for disputed rights” took place with the participation of more than 100 people at the Museum of Anthropologies. It was organized by Fundeps, with the participation of more than 30 spaces.

“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”.

For three hours, reflections were developed around:

  • how the reduction in public spending affects university education, the scientific-technological system, the popular sectors and the media;
  • the consequences of the pension and labor reform proposal, focusing on private home workers; and the unconstitutionality of DNU 70/23.
  • the regulatory regressions in relation to the exploitation of natural resources, how communities experience these deregulations and the environmental impact of the Large Investment Regime (RIGI).

The discussion brought together representatives from various fields, including academia, social organizations, communities, media and unions.

An event with diverse voices and perspectives that help us understand some of the challenges we face and how to build collective strategies against the regression of rights.

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Actions that transform: see our Annuary 2023

We are proud to share the 2023 Yearbook, a review of our work, achievements and lessons learned over the past year.

During 2023 we carried out a variety of actions. From advocacy meetings and court filings, to research, conferences and workshops, communications campaigns and more. Each action reflects our determination to transform society and defend human rights.

In addition, at the end of last year, we experienced a major change in our leadership. Carolina Tamagnini, who has led Fundeps for the past 4 years, stepped down as Executive Director to join the Board of Directors and in her place, Mayca Balaguer took over as the new Director.

This change marks not only a transition in leadership, but also a moment of institutional strengthening and renewal, consolidating a dynamic team capable of responding to emerging demands, growing both institutionally and in impact.

What began as an initiative in 2009, today has become a solid organization involved in the defense of human rights, and in 2024. We celebrate 15 years!

Because we are confident that the best way to carry out our work is in a network and collectively, we thank the organizations, communities and individuals who were part of these initiatives. We celebrate with you our progress and invite you to get to know the Yearbook 2023: the collective memory of our commitment to a more just, equitable, sustainable and democratic society.

 

VIEW ANNUARY 2023

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Representatives of civil society meet with president of the IDB

Representatives of civil society meet with the president of the IDB to address challenges for sustainable and inclusive development in Latin America. At the meeting, recommendations were presented to the bank to strengthen the promotion of sustainable development in the region.

“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”.

25 civil society organizations from Latin America that are part of the IDB Working Group, among them Fundeps, met on Friday, November 10, with the president of the Inter-American Development Bank (IDB) Ilan Goldfajn, with the purpose of strengthening dialogue and identify opportunities to bring the institution closer to the populations of the region it tries to serve.

The representatives of civil society presented to President Goldfajn recommendations to strengthen the link with civil society and communities impacted by IDB projects and recommendations to consider in the IDB’s 2023-2030 Institutional Strategy, which is in the process of being prepared. President Goldfajn then opened the floor to listen to specific topics of interest from different member organizations of the group.

The IDB Working Group described the meeting as a positive sign from the bank’s new administration, in the sense of an openness and willingness to strengthen dialogue with civil society. The meeting with President Goldfajn follows a previous meeting that took place during the 2023 IDB Annual Meeting held in March in Panama, and a meeting with the IDB Country Vice President, Anabel González, during the Common Finance Summit that took place in last September in Cartagena de Indias, Colombia.

“These spaces for dialogue represent a sign of the bank’s rapprochement with civil society”, said Carolina Juaneda, from the Bank Information Center, coordinator of the Working Group on the IDB. According to Ivahanna Larrosa, regional coordinator of the Coalition for Human Rights in Development, “the general perception is that it was a good meeting to present our messages and move forward in improving the bank’s dialogue with civil society.”

Civil society representatives pointed out that the IDB Group’s 2023-2030 Institutional Strategy must promote a fair, community-based energy transition that puts people and the environment at the center. Other recommendations of the Working Group were that the bank: comply with the highest environmental and social standards and respect for human rights in its activities and the projects it finances, prioritizing and strengthening the implementation of the Environmental and Social Policy Framework (MPAS), and improving upstream planning to identify suitable projects; prioritizing quality investments, redoubling the principles of good governance, especially transparency, access to information, participation and accountability; strengthen your commitment to the impacted communities, guaranteeing comprehensive reparation to people; ensure a responsible exit from unsustainable projects and operationalize the commitment not to tolerate retaliation.

Civil society organizations seek substantive participation in the IDB Group Annual Meetings that will be held in March 2024 in the Dominican Republic. The opening of President Goldfajn and his team to work towards greater interaction of organizations and communities in the region, with the Bank’s administration and teams, is celebrated.

About the IDB Working Group

The IDB Working Group is a group of more than 60 civil society organizations, both from the region and internationally, that influence the IDB Group, promoting the highest environmental, social and human rights standards. supporting communities adversely impacted by projects financed by the bank. Some of its members have been working for three decades to strengthen the IDB’s processes of participation, transparency, access to information and respect for human rights.

 

More Information

 

Contact

Gonzalo Roza, gon.roza@fundeps.org

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The Asian Bank approved its first infrastructure project in Argentina

From September 25 to 26, in Sharm El Sheikh, Egypt, the eighth Annual Assembly of the Asian Infrastructure Investment Bank (AIIB) was held, an event that brings together its members, business representatives and civil organizations to discuss the direction strategy and initiatives of the organization. At this meeting, the AIIB announced the approval of the first loan in Argentina, intended to finance a wind farm in Tierra del Fuego.

“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 main objective of the Annual Assembly is to share the Bank’s progress and receive suggestions regarding its strategic direction and operations. It also provides information and encourages exchanges on policies and projects financed by the AIIB in terms of social and environmental impact.

The central theme of the 8th Assembly was “sustainable growth in a challenging world” and highlighted the importance of addressing the global climate agenda and supporting key infrastructure demands for AIIB member countries. The meeting program covered a variety of Thematic topics that include the latest trends and priorities of the Bank. The public sessions were grouped into three thematic streams: sustainability, connectivity and multilateral cooperation. They addressed issues related to the development and implementation of sustainable environmental infrastructure, as well as the promotion and strengthening alliances that improve infrastructure connectivity both in Asia and in other regions.

First AIIB project in Argentina

A particularly relevant event for Argentina was the announcement, during the event, of the approval of the project called “Energy transition of the province of Tierra del Fuego” for an amount of 65 million dollars. This project marks a milestone, as it represents the first financing granted to Argentina as a member of the Bank, which it officially joined in March 2021. The funds will be used for the construction of a wind farm near the city of Río Grande. . According to the AIIB, the main objective of the project is to establish the wind energy generation capacity in the province of Tierra del Fuego and it “is aligned with the objectives of the Paris Agreement and the Nationally Determined Contributions of Argentina, for which will help reduce greenhouse gas emissions and increase the adoption of renewable energy.” This initiative arises from the need to take advantage of the wind resources that the province has and the lack of interconnection in local networks for the materialization of projects of such magnitude.

However, it is important to highlight that given the scarcity of information about the project, it is essential to analyze in depth how the project will be carried out, and what the true implications could be in terms of socio-environmental impacts. For this reason, at Fundeps we are monitoring this project and have made a request for information to the AIIB about details that are not yet clear. For example, although an Environmental and Social Management Plan (PMAS) and a Stakeholder Participation Plan (PPPI) have been published on the Bank’s website, the documentation related to the Environmental Impact Assessment is not yet available. and Social, the Environmental and Social Due Diligence Report or information related to the public hearings planned for the project, among other relevant documentation.

This information is key to identifying the real impacts of the project and verifying whether access to information about the project and the participation of the local population is effectively ensured. In turn, another aspect that raises doubts is the role that the CAF (current Development Bank of Latin America) will have in relation to the project, since it has been presented as a co-financed project between both multilateral institutions.

Author

Candela Jauregui

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Is a new international financial architecture possible?

Last week, the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB) took place in Morocco. Likewise, a counter-summit was organized that gave space to civil society and social movements to discuss the neoliberal policies promoted by these institutions. Below are some reflections on these events, their limitations and potential, and the particular situation of Argentina.

“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 Annual Meetings, which this year took place between October 9 and 13 in the city of Marrakech, are spaces where panels are organized with IMF directors and staff, while civil society has its own forums and exhibition spaces and discussion. At the same time, countless closed meetings occur in parallel to the entire official agenda. All of this aims to be able to discuss how the international financial architecture is organized, which determines under what conditions funds are lent mainly to countries in the global south. The role of civil society in these spaces is to bring their concerns and represent the voices of the people affected by this complex lending infrastructure.

For example, the Coalition for Human Rights in Development presented a report where of 38 projects evaluated, in 36 reprisals were identified against people who defended rights and complained against said loans. This shows that, although the International Financial Institutions (IFIs) make high-level proclamations regarding the importance of human rights, there are no measures or real addressing of the negative consequences on defenders who suffer abuse by security forces. security and the police, judicial persecution, the disproportionate use of force, surveillance, and gender violence and sexual harassment in the particular case of defenders.

Likewise, the Environment and Natural Resources Foundation (FARN) presented in a panel on the IMF’s climate strategy regarding the Argentine case. It was made visible how the need for foreign exchange from exports is pushing the fossil fuel extractivist model and going against the country’s climate change mitigation goals. The emblematic example is Vaca Muerta, which if fully exploited would use the equivalent of 11.4% of the CO2 budget. In this case, we can see how the short-term foreign trade balance needs override any analysis of environmental impacts and put the environmental sustainability of the planet at risk.

Faced with this, in general the authorities and staff of the IFIs present on the panels insist that existing policies are the ones that work, they dismiss the proposals of civil society with their own data and are not very receptive to any criticism. For this reason, spaces like the Counter Summit appear, where the conversation flows in a more critical and sincere way about what is happening with the impacts of loans and projects, allowing a space to unite voices in order to change injustices. that today affect so many countries and communities.

The Counter Summit opened on October 12 with a march, and over the next two days there were both small group and plenary discussion sessions. Finally, on Sunday the 15th, the plenary session closed with a reading of the conclusions, which included the cancellation of illegitimate debts, policies that respect planetary limits, climate and social justice, and promote food sovereignty. Also, let end financial colonialism, that there be financing for projects that allow adaptation to climate change, social security and universal health coverage, and a special proclamation for the rights of women who are those who are most negatively impacted by austerity policies.

Argentina and its link with the IMF

According to Noemí Brenta, Argentina has a very particular relationship with the IMF, since it is the middle-income country that has been under its agreements the longest, directing economic and fiscal policies. Today, not only does it have almost 30% of the IMF’s loan portfolio, but it is a good student: throughout all these years and of 22 agreements, only 5 were suspended by the organization. Therefore, it can be stated that the guidelines recommended by this organization have had great influence on the decisions of the different governments.

However, compliance with the policies has implied a notable deterioration in people’s quality of life. On the one hand, the conditionalities impose that the income that the country has be used to pay creditors (that is, to the IMF and other debtors as well), which in turn implies that social expenses are cut and there is no investment for the country. development. On the other hand, the extractivist model is deepened through the agro-industrial production of commodities, the exploitation of fossil fuels and mining – lithium mining is very popular today due to its potential to contribute to an energy transition towards other renewable sources. This has negative consequences on the environment, does not take into account the impacts on the use of scarce and non-renewable resources such as water, and limits the development of the communities that live in the exploited territories.

Mariano Féliz suggests that the impacts on the paid labor market have clear gender biases, since it is women who have to face intensified unpaid and reproductive tasks, while receiving fewer public services. IMF policies that promote women’s participation in economic activity do so from an instrumental perspective because it improves macroeconomic indicators and provides labor that usually accepts worse working conditions. However, while the employment rate for adult women increased, the employment rate for men, especially young people, decreased. All of this only results in the capitalist tendency to overload women with care tasks for their own homes and communities, for example, through the organization of popular soup kitchens.

For the logic of financing agreements and governments, human rights are an ideal that is difficult to fulfill rather than an obligation. The panorama then in Argentina makes us have to think about how to build a political movement against unsustainable and illegitimate debts, against abusive conditionalities that are detrimental to fundamental rights and people’s lives. It also forces us to reflect on how these Levels of indebtedness and precarious lives are linked to the growth of far-right electoral options, which ultimately also promote anti-democratic discourses and practices.

The challenges are many, they are complex and involve a lot of political articulation. However, the context is urgent, since there is no sustainability of life possible under the policies of austerity, impoverishment and extractivism. We have to continue building collective narratives, mobilizing and supporting communities by defending their territories.

Contact

Carolina Tamagnini, carotamagnini@fundeps.org

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Argentina’s entry into the BRICS: what does it mean?

On August 22-24, the 15th BRICS Summit took place in South Africa, where heads of state of the member countries (Brazil, Russia, India, China and South Africa, whose acronym is the acronym) met at a high-level forum to discuss key issues for the most prominent emerging economies.

“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”.

During the XV Summit, the Heads of State met with members of the business sector in dialogue with the New Development Bank to outline the main axes that will guide BRICS policy. This year’s agenda included the potential “de-dollarization” of global trade, with China and the yuan at the forefront of this ambition, as well as the possible effects of the Russian-Ukrainian war on cooperation between member countries. However, the emphasis was on the expansion of BRICS to include the countries that have submitted official applications for membership: Argentina, Iran, Saudi Arabia, Ethiopia, the United Arab Emirates and Egypt.

Finally, during the summit, Argentina, as well as the rest of the countries mentioned above, was formally invited to join the BRICS as from January 1, 2024. Since it is an international forum that does not imply a supranational integration process, the decision to join will be at the discretion of the Executive Power that takes office on December 10. Some of the presidential candidates, such as Javier Miliei (La Libertad Avanza) and Patricia Bullrich (Juntos por el Cambio) have expressed critical positions regarding the accession, alleging a strong difference with the international actions of the BRICS countries, especially in reference to their violations of international law, such as during the war in Ukraine.

In this sense, it is possible to identify some key elements regarding the implications of Argentina’s participation in the BRICS. Mainly, reference is made to the quantitative dimension of the BRICS group, which concentrates 40% of the world’s population and 25% of the world’s GDP, a percentage that, together, equals that of the United States (World Bank Data Center). In addition to these numbers, there are those that link Argentina specifically with the founding countries: the main recipients of Argentine exports include Brazil, China and India; while its main imports come from China and Brazil (OEC).

The role of the New Development Bank

The economic factor becomes more relevant if the possibilities of financing by the New Development Bank (NDB) are taken into account. The BRICS development bank was founded by the member nations of the bloc in 2014, during the sixth summit held in Fortaleza, Brazil. This international bank is positioned as an alternative to the IMF and the World Bank, with credits oriented mainly to infrastructure projects and which, according to the official website, prioritize “high-impact operations that are environmentally smart, resilient, technologically integrated and socially inclusive”.

Currently, the New Development Bank finances projects in only 6 countries (China, India, Brazil, Russia, South Africa and Bangladesh) for a total of US$ 32.8 billion. According to sources such as Ámbito Financiero, Argentina is already negotiating with Dilma Rousseff, who holds the presidency, a possible credit line that would help alleviate the pressure on the debts with the IMF. In order to join the NBD, Argentina must make a capital contribution of “US$250 million in sovereign bonds held by the Treasury, from the Guarantee and Sustainability Fund (FGS) of the National Social Security Administration (Anses) and other sources” (La Nación). A key element of participation in the NBD is that in their general strategy they commit to grant 30% of their loans in local currency of the recipient country, in order to mitigate the risk of foreign investment (NBD). In the case of Argentina, this could diversify the sources of financing and reduce dependence on the dollar and the IMF. However, there are still concerns about the bank’s transparency and the possibility of access to public consultations or information on the investment process (Diálogo Chino).

Since its creation, BRICS has positioned itself as an alternative multilateral cooperation forum for emerging economies, which emphasizes multipolarity and a “de-ideologized” positioning, prioritizing informal dialogue and trade exchange. In this sense, Argentina’s entry into the forum presents a space for rapprochement with the large economies of the world that are disputing an alternative model of financing for development.

 

More information

 

Author

Lourdes Álvarez Romagnoli

Contact

Gonzalo Roza – gon.roza@fundeps.org

 

*Source of the image: El Cronista

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Inter-American Development Bank: public consultation for its new Institutional Strategy

On June 27, the IDB Group (Inter-American Development Bank, IDB Invest, and IDB Lab) announced the opening of the public consultation process for the preparation of its new Institutional Strategy. The process will be carried out through collaborations and face-to-face and virtual consultations with interested parties, including civil society.

“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 accordance with the mandate to review and prepare the Institutional Strategy every four years, the IDB Group announced a new opening of the public consultation process. The IDB Group is one of the main sources of financing for development in Latin America and the Caribbean and is made up of the Inter-American Development Bank (IDB); IDB Invest, which works with the private sector; and IDB Lab, which focuses on developing innovative ways to drive inclusive growth.

The main objective of the consultation is to receive opinions and inputs from interested parties, among which are representatives of governments, the private sector and civil society for the development of a new Institutional Strategy. The process begins after the agreement of the main guidelines established by the Executive Boards of both the IDB and IDB Invest. Once established, the procedure is divided into two phases: the first phase consists of consultations with representatives of the government, private sector, and civil society, either virtually or in person, in the 26 borrowing member countries. In turn, it also includes the possibility that any interested party can contribute inputs through an online form that is available until August 15, 2023. The second phase begins after the approval of the new Strategy by the the Board of Governors, in March 2024, in which those who participated in the public consultation will be informed about the inputs received and will be shared with them the new Institutional Strategy of the IDB Group that will be valid until 2030.

In Argentina there are three dates established for public consultations: with civil society (08/04/23), with the private sector (08/10/23) and with the government (08/16/23). To access the dates of public consultations in the other countries, consult here. For comments or more information, you can contact the following email: consultaspublicas@iadb.org

From Fundeps we consider the opening of this process as an opportunity to strengthen the Bank’s dialogue with civil society. This is why we will participate in the process in the month of August by sending contributions to strengthen the next institutional strategy.

 

More Information

 

Author

Candela Jauregui

Contact

Gonzalo Roza, gon.roza@fundeps.org