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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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Trunk Gas Pipelines and the difficulty of accessing public information in the province

On the occasion of the completion of the Trunk Pipeline Work in the province of Córdoba, last year we made 5 requests for information to provincial agencies. When we did not get any response, we presented a prompt dispatch to the Ministry of Environment and Climate Change. The difficulties we have encountered in accessing information about this project have been constant since its inception.

“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”.

Since 2014, we have made various requests for information on this emblematic project to both the Provincial Government and the National Government. On the occasion of the project’s completion, last year between August and October we made a series of requests for information to three departments of the Province of Córdoba directly or indirectly involved in the project, namely: the Córdoba Investment and Financing Agency -ACIF -, the current Ministry of Public Works, former Ministry of Public Works and Financing and the current Ministry of Environment, ex. Ministry of Water, Environment and Public Services.

At the end of 2019, as we had not received a response from any of the provincial agencies for the requests for information made and the response period had ended, we decided to make an early dispatch to the Ministry of the Environment.

It is important to clarify that once the provincial agencies receive a request for information they have 10 days to respond and it can only be extended for an additional 10 days as long as it is reported within the deadline. In the event of an incomplete response or lack of response, as was the case here, a prompt dispatch may be submitted. This resource is the same request for information, but it details the date and details of the request that had been made, together with a warning to initiate legal actions, that is, an injunction for default. Any provincial agency has a term of 10 to respond to the prompt dispatch, with the possibility of extending it for another 10 days, as well as with requests for information. In our case, the prompt dispatch was carried out in mid-December 2019, however the Ministry of the Environment responded to us only in February 2020, that is, the deadline was more than expired.

Thanks to the prompt dispatch made, we received the response to the request for information made in August 2019. The request requested information on the final layout of the project, location and number of inhabitants, businesses and industries benefited by the works and the state of situation. of the project. According to the information provided, all the Regional Systems are completed with provisional and / or definitive reception of the work.

In addition, we inquired about the companies and / or Transitory Business Units (UTEs) that participated in the project as well as what were the details and characteristics of the plan for connecting the home units to the Trunk Systems Regarding this last query, the provincial agency He replied that by means of a protocolized Agreement No. 024/2017 signed by the province of Córdoba, the Banco de Córdoba and the Distribuidora de Gas del Centro SA The “Fund for the Financing of Natural Gas Home Networks” was approved. It established the guidelines and requirements that the adhering municipalities must meet to allow the neighbors the possibility of obtaining financing to face the costs of connecting to natural gas in the home networks. In line with the above, the origin of the financing of the Provincial Plan Connect Gas Industry that enables the connection to the natural gas service to Shops, SMEs, Industries, Industrial Parks, among others, was consulted. This Program has a Banco de Córdoba financing line of $ 200,000,000, an amount that is loanable up to 100% of the value of the work according to the client’s classification. Also, the Program has financing of $ 100,000,000 from the Federal Investment Council.

Most of the information requested had previously been requested in requests for information that we made in previous years but in which we did not receive any response. Information that would have been optimal to have long before.

The lack of response to requests for information, such as non-compliance with the deadlines stipulated by Provincial Law 8803 on Access to Public Information (called the Law on Access to Knowledge of State Acts), hints, again, not only the great difficulty currently existing to access public information in the hands of the government of the Province, but also how outdated this law is, which dates back to 1999. Consequently, last year together with social organizations we requested through a document the update of this Provincial Law in accordance with the guidelines of the Inter-American Model Law and the National Law of Access to Public Information.

Access to public information is a human right that strengthens citizen participation, transparency in public administration, and democratic governance. For this reason, it is necessary to update the provincial Law in this matter in order to solve the shortcomings it possesses, incorporating the highest standards and guaranteeing control mechanisms that supervise its compliance.

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Author

  • Gonzalo Roza
  • Sofia Brocanelli

Contact

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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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We send recommendations regarding the possible dilution of the IDB’s socioenvironmental

In the framework of the public consultation process on the review of IDB environmental and social safeguards policies, together with a group of more than 50 civil society organizations in the region, we made comments and observations on the draft of the new Policy Framework. Environmental and Social, through a document that was sent to the Bank on Monday, April 20.

“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 December 18, 2019, the Executive Board of the Inter-American Development Bank -IDB- approved and published the draft of the new Environmental and Social Policy Framework -MPAS- on the occasion of the modernization of its environmental and social policies that govern the operations that lead to out the bank.

The proposal of this policy differs from the previous ones, since this draft Framework seeks to integrate environmental and social policies into a single policy. Thus, the draft of the MPAS is structured in two parts. In the first, it presents the Policy Statement that addresses the IDB’s responsibilities and roles and relevant issues such as human rights, gender equality, non-discrimination and inclusion, rights of Indigenous Peoples, Afro-descendants and other traditional peoples, participation of interested parties. , reduction of greenhouse gas emissions and protection of Biodiversity, and natural resources and ecosystem.

In the second part of the draft, the ten environmental and social performance standards that must be met by the borrowers throughout the project life cycle are detailed. In addition, for the Bank, the Standards will serve as guides for risk assessment, classification, due diligence, monitoring and management.

The 10 Performance Standards are as follows:

  1. Assessment and management of environmental and social risks and impacts.
  2. Work and working conditions.
  3. Efficiency in the use of resources and prevention of contamination.
  4. Community health and safety.
  5. Land acquisition and resettlement.
  6. Conservation of biodiversity and sustainable management of natural resources.
  7. Indigenous villages.
  8. Cultural heritage.
  9. Gender equality.
  10. Stakeholder Participation and Disclosure of Information.

Following the Bank’s Public Consultation Plan, the public consultation process on the MPAS began in January through face-to-face consultations scheduled by the IDB in different parts of the world. It was not only possible to participate through face-to-face consultations, virtual consultations were also enabled through the sending of comments through the Bank’s website or through an e-mail address. This first phase of virtual consultations ended on April 20.

It was in this framework that more than 50 civil society organizations that we have been working collaboratively and jointly since last year, prepared and sent to the IDB a document with a large number of comments and observations on the draft of the new MPAS.

The document, with more than 80 pages, is structured in general comments and specific comments on each performance standard found in the framework, and not only identifies in detail each of the problematic aspects that we identified in the draft, but also provides particular recommendations to correct them. In this way, it seeks to avoid the evident dilution of environmental, social and human rights standards that would entail the approval of the draft of the new MPAS as it stands. The document was sent on Monday, April 20, the date on which the first phase of virtual public consultations on the draft of the new MPAS ended.

At the same time, from Fundeps, and with the support and collaboration of a group of civil society organizations specialized in gender issues, we sent particular comments regarding the draft MPAS from a gender perspective. In this document, we raise the need for the IDB not only to avoid weakening its current Gender Policy, considered one of the most advanced in the matter in relation to the rest of the IDB-related Financial Institutions, but also to decide to put itself decisively at the forefront In this matter, for which it must necessarily carry out a process of mainstreaming the gender perspective in all its financed policies and projects (See document).

Which are the next steps? The IDB will prepare a second draft of the MPAS in which it must incorporate the recommendations and observations received from civil society during the consultation process. However, previous experience in recent consultation processes carried out by the IDB shows that the Bank is unlikely to incorporate and take into account the most important recommendations provided by civil society. We hope that in this case this trend will be reversed.

When the Executive Board approves the second draft, the IDB will publish it on its website and begin the second stage of the consultation process, which will be virtual and for a period of 30 days. Once this period has ended, it will produce the final version of the Framework and a document with the response to the comments received. The approved MPAS would take effect in January 2021.

From civil society, we hope that the IDB will take into consideration the comments and observations that have been made not only to avoid dilution of the institution’s social and environmental standards, which have been built together with civil society in recent decades. , but also to take advantage of the opportunity to advance and strengthen them. Something that becomes even more necessary in a regional context marked by the weakening of the national socio-environmental framework in most countries.

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We make comments and observations on the IDB’s Environmental and Social Policy Framework from a gender perspective

From Fundeps, together with the participation of some international civil society organizations, we sent the IDB a document with comments and observations on 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 -IDB- published the draft of the Environmental and Social Policy Framework (MPAS) in order to modernize its environmental and social policies. What does this MPAS mean? These are the requirements in environmental and social policy that the Bank or the Bank’s borrowers must meet when carrying out a project. In this statement, the Bank maintains a commitment to environmental and social sustainability, translated into a series of requirements and recommendations ordered in ten Performance Standards to be met in each project.

In January 2020, on-site and virtual public consultations began, in which Fundeps participated by presenting a review of what was proposed in social and environmental safeguards policies. This month, we led a document with specific comments and observations to Rule 9, on Gender Equality, and its lack of mainstreaming towards the rest of the MPAS Rules. This document was formulated together with another group of NGOs that adhered to the recommendations and together it was presented to the IDB. This work involved analyzing the entire draft of the Framework from a gender perspective and also contrasting it with previous gender policies published by the Bank.

As mentioned, the first shortcoming identified is the loss of mainstreaming of gender policy in project financing requirements. Taking into account that such projects directly and indirectly affect local communities, we demand that the Gender Equality Standard dialogue with other approaches such as race, ethnicity, class, age, religion, profession / activities, geographic location, among others. In other words, we demand that the problems be addressed from an intersectional vision, recognizing the coexistence of different vulnerabilities.

Regarding its conceptualization of gender equality, some inequalities of women with respect to men are mentioned, along with possible violence against trans people, so its approach in relation to LGBTTTIQ + people is scarce and superficial. Although it refers to ‘gender empowerment’ instead of ‘women empowerment’, there is no specific mention of gender, which manifests the reproduction of a binary, exclusive and regressive approach in terms of human rights. Furthermore, this means -not specifically mentioning the genres- the lack of incorporation of LGBTTTIQ people in the requirements to be met by the projects.

In its implementation measures, we note that the approaches proposed by the international human rights treaties for girls, adolescents, women, and LGBTTTIQ + people are not incorporated. On the other hand, the implementation measures required of borrowers do not include a proactive policy to advance on gender equality, as it was included in previous Bank gender policies. We continue with a preventive policy, although we identified an absence of a gender perspective in the design of strategies to mitigate and prevent violence, discrimination and inequalities.

In order to materialize progress regarding human rights in IDB-financed projects, we raise the need to strengthen the Bank’s commitment to the gender perspective, such as incorporating it at the internal level of its organizational structure. Taking into account the Bank’s ability to generate public policies through its choice of financing, we conclude that it must develop robust frameworks, operational policies, and accountability mechanisms that incorporate the gender perspective cross-sectionally and ensure the informed participation of affected people at all stages of all projects financed and undertaken by the Bank.

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Brothers be united? Profiling of the Sino-Argentina relationship in the government of Alberto Fernández

After the Mauricio Macri government will use the acquisition of debt with multilateral credit organizations as the main source of financing for its management, prioritizing the relationship with the International Monetary Fund and the United States government, it is prudent to ask ourselves: What has been the China’s role in this scenario? How is the relationship with the Asian giant outlined in the new government of Alberto Fernández?

“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”.

Since the consolidation of China as an influential player in the international system and one of the main economic powers, Argentina has had a relationship with ups and downs but in constant communication. The use of China as a counterweight actor against the constant influence of the United States is not a strategy used only by Argentina, but also by most of the countries in the region.

In this geopolitical scenario, China presents itself as an actor that cannot be ignored beyond the efforts of the West. However, the Mauricio Macri government slightly changed the trend that had been prevailing during the Cristina Fernández government, which could be described as almost preferential.

During the Macri government, relations with China have gone from having a strong bond to going through some ups and downs, since the beginning of the administration, the closest approach to the United States tended to a distance with China. This was reflected in the reconsideration of agreements previously signed during the previous government, which implied a pause in several projects. The guiding idea of ​​the foreign policy of the then President Mauricio Macri was “the reintegration of Argentina in the world” which involved giving a more relevant role to multilateralism. From there, the various international tours and the search for support in the world produced a departure with the Chinese giant with whom he had a very deep strategic cooperation agreement.

Faced with the exhaustion of international credit and the inevitability of the link with China, in the middle of his term, Macri resumed the dialogue interrupted for two years and continued with the stage of deepening the strategic cooperation proposed by the Fernández de Kirchner government, with the Holding of the G20 Summit in Argentina and new modified cooperation agreements were signed. By the end of the term, the relationship had already been fully resumed, which was evidenced in Argentina’s attendance at China’s main initiative in Latin America in the Strip and the route, and 16 cooperation agreements were signed between the two countries. Finally, in June 2017 Argentina is outlined as a potential non-regional member to the Asian Investment and Infrastructure Bank -AIIB- along with other Latin American States, in order to find financing for the country’s large public infrastructure works such as dams in Patagonia .

In this context, the government receives President Alberto Fernández, who is also going through an exceptional situation of public health emergency due to the COVID-19 pandemic. The truth is that, months after his administration began, Fernández had to decide who would be the Argentine ambassador to China, a decision that would indicate the course of action of foreign policy with the Asian country. Fernández’s decision was innovative since he appointed Luis María Kreckler, a career diplomat with a career in embassies such as Brazil and Germany, as Argentine ambassador to China and as political advisor to the embassy along with Sabino Vaca Narvaja, renowned political scientist of the Program of Sino-Argentine Cooperation and Linking from the National University of Lanús and academic specialist on China.

From this designation it is observed that the Fernández government seeks a balance in the relationship with China, that is, the maintenance of a strategic association with the Asian giant but without reaching full dependence. The appointment of a diplomat with a career as Kreckler may imply prudence when proposing a foreign policy strategy that generates an international balance of political interests that may be presented by political scientist Vaca Narvaja.

For his part, President Fernández has declared that China’s role in the global order is inescapable and that during his term he will seek to deepen the Comprehensive Strategic Association that could be extended to the Belt and Road Initiative.

For the moment, the incipient government of Alberto Fernández, which has barely gone through 100 days of administration, has already had to manage a national health emergency crisis by COVID-19, and an economic emergency due to the still pending negotiation with the IMF. . In this context, everything that does not qualify as an emergency is automatically displaced from the government’s priorities. However, the relationship with the Asian giant has been strengthened with the donation of medical supplies from the Chinese government to Argentina in the framework of the bi-national cooperation established in the face of the COVID-19 pandemic.

Likewise, when it comes to the People’s Republic of China, it is recognized that the symbolic has the same relevance as the economic. For what no less data has been the message contained in the input boxes from China where the famous quote by Martín Fierro written by José Hernández was found: «The brothers be united because that is the first law. Have true union at any time. « Although nuances can be expected in the relationship with the Asian giant, one thing is certain, the Alberto Fernández government is determined to strengthen the bilateral relationship, so we must wait to know at what cost it will be.

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Author

  • Florencia Harmitton

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We were present at the Conference: ‘Rethinking the role of foreign investment and the New Silk Road in Latin America’

On March 2-3, the conference on foreign investment and the New Silk Road in Latin America and the Caribbean was held on the campus of the National University of San Martín in Buenos Aires.

“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 March 2 and 3, the conference ‘Rethinking the role of foreign investment and the New Silk Road in Latin America and the Caribbean‘ organized by Transnational was held on the campus of the National University of San Martín (UNSAM). Institute (TNI) and UNSAM.

Both days, exponents participated not only from Argentina, but also the presence of specialists from Chile, Bolivia, Brazil, Mexico and Peru. On the first day of the conference, issues such as the role of foreign direct investment (FDI) for sustainable development in the current context of climate crisis were addressed; FDI in Latin America, including Chinese investments and the key sectors in which they are located. In addition, the potential implications of the region for the New Silk Road were discussed.

As the main conclusions of the first day, we can mention China’s need for extractive primary resources, the main reason for its relationship with Latin America and the Caribbean. The transfer of Foreign Direct Investment (FDI) of environmental impacts to the countries of the region. Finally, the continued violation of Chinese investments to Convention 169 of the International Labor Organization (ILO) on the right to free, prior and informed consultation for indigenous peoples.

On the other hand, on the second day there was a greater exchange of opinions between the speakers and the public present, respecting the topics agreed in the Program, such as Chinese FDI in the region, specifically the characteristics, impacts and challenges they face. Latin American countries, with emphasis on Argentina, Brazil, Mexico, Bolivia and Chile. Lastly, the topics that generated the greatest exchange of opinions were the relationship FDI-sustainable development models and, on the other hand, what is the type of FDI that we want, that is, if it can contribute to national development taking into account ecological sustainability .

Regarding the second day, the questions that had great force were those regarding which pattern China follows in the different countries of the region. Thus, issues such as the growing demand for lithium by China, its association with companies from other states to obtain their technology (technology transfer), the expansion of bi-oceanic projects, hydroelectric dam projects and the increase in ecoterritorial conflicts, due to mention some.

In our region, in recent decades, Chinese investments have grown exponentially, exceeding investments by traditional multilateral organizations (such as the World Bank and IDB). With these investments comes the lack of controls, environmental and social impacts, and human rights violations. However, the asymmetric relationship that exists between the region and the Asian country cannot be overlooked, reproducing the classic unequal patterns of relationships that have characterized Latin America and the Caribbean, formerly with the United States and Europe, now with the People’s Republic from China.

Consequently, it is important to create greater articulation between civil society, academia, affected communities and all those interested parties to demand a more egalitarian form of relationship and compliance with environmental and social standards, absent so far. It is within this framework that our participation in the conference and Fundeps’ interest in strengthening ties with both national and international academic institutions that address the issue of Chinese investment and its impact on the environment and human rights are framed.

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  • Sofia Brocanelli

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We participate in the consultations of the new IDB Environmental and Social Policy Framework

In the framework of the process of reviewing the environmental and social policies of the Inter-American Development Bank, we participated in public consultations held in the cities of Buenos Aires and Washington DC. Together with a group of civil society organizations, we raised certain concerns and recommendations regarding the review and consultation process, as well as the content of the draft of the proposed Environmental and Social Policy Framework.

“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 January, the IDB began the public consultation process on a new Environmental and Social Policy Framework (MPAS), which has included, up to now, face-to-face and virtual consultations in the cities of Brussels (Belgium), City of Panama (Panama), Kingston (Jamaica), Lima (Peru), Buenos Aires (Argentina) and Washington DC (United States). In addition, the reception of a first round of virtual comments regarding the draft is contemplated until April 20.

From Fundeps, we participated both in the face-to-face public consultation carried out on March 10 in the City of Buenos Aires and in the consultation carried out on March 13 in the city of Washington DC. In turn, we plan to send written comments regarding the draft released by the Bank in the framework of a joint work we have been carrying out with a group of civil society organizations in the region.

In general terms, the draft MPAS proposes two different sections: a Policy Statement that basically establishes the roles and responsibilities that will correspond to the IDB in terms of compliance with the socio-environmental provisions and requirements of the new Framework; and a second section that includes the detail of the Environmental and Social Performance Standards with which the borrowers must comply. The draft proposes the inclusion of ten Standards: 1. Assessment and management of environmental and social risks and impacts; 2. Work and working conditions; 3. Efficiency in the use of resources and pollution prevention; 4. Community health and safety; 5. Land acquisition and resettlement; 6. Conservation of biodiversity and sustainable management of natural resources; 7. Indigenous peoples; 8. Cultural heritage; 9. Gender equality; and 10. Stakeholder participation and disclosure of information.

The IDB has argued that the proposed MPAS is based on five guiding principles: the non-dilution of current policies; results orientation (that is, effective implementation); the proportionality of the responsibilities and the established requirements regarding the level of risk of the project; transparency and the idea of ​​”doing good” beyond “doing no harm”.

However, the analysis that we have carried out together with the rest of the organizations involved in this process allows us to glimpse that, at least as proposed, the current draft is far from effectively complying with each of these guiding principles. In general terms, a dilution of policies and socio-environmental protection can be seen in many of the Performance Standards; it is not clear how effective the implementation of said MPAS will be; The idea of ​​proportionality is not reflected in many sections of the draft; and practically no sections can be identified in the draft that propose “doing good” in the sense that the Bank proposes: that of facilitating more sustainable social and environmental results.

In turn, the entire review process being carried out by the Bank is far from being transparent and “offering significant opportunities for participation by all interested parties” as established by the IDB. Precisely, as usually happens with the consultation processes carried out by the IDB, this process has had important shortcomings, especially in the objective of achieving effective participation by stakeholders.

We have duly expressed all these criticisms and problems to the Bank’s representatives in each of the consultations in which we participate and we accompany them with specific recommendations and suggestions that they should take into account when preparing the next draft of the Framework. In addition, these recommendations will be sent in writing in advance before the expiration of the term to send comments virtually.

Having completed the public consultations and once the period for receiving comments and suggestions virtually ends, the Bank must prepare a new draft of the Environmental and Social Policy Framework to be presented to the Board of Directors. Subsequently, the new Draft will be published for a new round of virtual comments for a period of 30 days, according to the Public Consultation Plan approved by the Bank’s Executive Board. Upon completion of this period, the IDB will develop the final version of the Framework that will be submitted to the Policy and Evaluation Committee of the IDB Board for final evaluation.

The IDB is a member of the IDB Group. It is a source of long-term financing for the economic, social, and institutional development of Latin America and the Caribbean and, unlike IDB Invest that invests in private sector projects, the IDB is responsible for investment in the public sector.

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Argentina will continue betting on the PPP contract modality?

With the law 27,328 approved in 2017 on the modality of Private Public Participation contract, the previous Argentine Government intended, among other objectives, to reduce the country’s infrastructure deficit, while leveraging private investment. After having confirmed only a handful of projects of those initially raised, and taking into account the criticisms existing in other countries and regions regarding this type of contracting, the question that arises is how effective this contracting modality has been so far , and what decision the new Government will make regarding the continuity or not of both the confirmed and pending projects; as of the decision to promote PPPs to boost infrastructure in the country.

“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 contract modality of Public Private Partnerships (PPPs) or Public Private Participation (PPP) are medium or long term agreements between the State and a private sector company. PPPs apply to projects related to public infrastructure and the provision of social services that have a deficit in their financing. Therefore, together with private and governmental agents, it participates in the provision of services such as water, transportation, road infrastructure, energy, among others. (More information about APPs)

The need for capital, technology and resources has been and is necessary in our country due to the deficit that exists in infrastructure. Therefore, the PPP contract modality has been presented as an alternative to end or reduce this imbalance. Since 2000, Argentina has a legal framework that regulates PPPs, one is Decree No. 1299 of year 2000 and the other is Decree No. 967 of year 2005. However, due to changes in the international economy , these instruments were obsolete, so in 2017 a new law was approved that regulates the application of the PPP, Law No. 27,328 and its Decree 118/2017. The difference between this instrument and the previous ones is that the current one excludes or limits the prerogatives of public law of the Administration as the ability to unilaterally modify the contract, making it impossible for the private contractor to invoke the breach of the State to suspend its benefits, among others.

The Subsecretariat of PPP is the body responsible for regulating this type of contract modality. This unit, before the assumption of the current government, was in charge of 5 National Directorates: the Executive Coordination of PPP Projects, Energy and Mining Projects, Transport Projects, Communications and Technology, Water Projects, Sanitation and Housing, and Health, Justice and Education. Currently, on the occasion of the change of government, modifications are being made in this unit. So now, the PPP Subsecretariat is responsible for 3 national directorates: the National Directorate of Information and Monitoring of PPP Projects, the National Directorate of Technical Evaluation of PPP Projects and the National Directorate of Legal and Regulatory Project Analysis of PPP.

It is important to mention that the High Level Reporting Mechanism (MRAN) was also implemented in the PPP Tenders that collaborates with the Anti-Corruption Office. This mechanism is a tool for preventing corruption and / or committing ethical irregularities. It aims to provide private sector companies and other parties that are participating in the bidding process, a reliable, specific channel known to all to report alert situations such as unethical behavior and offer of bribes.

As for the projects, once the law entered into force, an Argentine Government Plan was presented that contemplated the completion of 60 PPP projects between 2018-2022 for USD 26 billion. In this framework, from Fundeps, requests for information have been made to the national State to consult for more information on this type of contract such as the organizational structure that guarantees it, the entities responsible for monitoring, and what are the projects that are in March and in what sectors.

One of the largest projects currently being developed is the ‘Highway Network and Safe Routes PPP- Stage 1’ which began in June 2018, being awarded to National and International Public Tenders for the contracting of the design, construction, expansion, improvement, repair, remodeling, operation, maintenance and commercial exploitation of different National Road Corridors. Just to mention, this process had the participation of 10 consortia composed of 19 national and 7 international companies that submitted 32 offers in total.

However, when asked about the participation in this type of projects of any of the international financial institutions such as the IDB, IDB Invest or World Bank, from Nation they could not provide us with such information, despite the fact that they exist on the websites of said projects institutions, information linked to the realization of works with this type of modality.

Undoubtedly, the short period of validity of the new regime, as well as its poor implementation in only a handful of projects to date, added to the context of the economic crisis that the country has experienced in recent years, make it impossible to do an accurate balance of how effective or not this contracting modality has been to achieve the objectives set.

With the new government, it will be necessary to follow up on the projects that are underway and observe what position it will take according to the projects that are still to begin, since the package of projects covers from the year 2018 to 2022. In turn, It is worth considering whether the new government will follow in the footsteps of its predecessor, seeking to promote this type of contracting modality to carry out infrastructure works and attract private investment or if, on the contrary, it will resort to either more traditional options that are based on strong participation and financing of the public sector; or rethinking the APP mode in some way.

Regardless of this, and already having legislation that allows this type of contracting modality, from Fundeps we consider it a priority that, when thinking and promoting this type of projects, the problems and deficits that have had in the past are taken into account and they currently have PPPs in other countries of the region and the world. Problems that are widely documented and that can serve as lessons learned to avoid damages and enhance the benefits of this contracting modality to strengthen national infrastructure.

* The information provided has been modified according to the website of the Head of Cabinet where the new government management has modified the number of national addresses. It is important to clarify that they are still updating the contents of the site according to Decree 7/2019.

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Authors

Sofia Brocanelli

Gonzalo Roza

Contact

Gonzalo Roza, gon.roza@fundeps.org

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Public consultations begin on the new IDB environmental and social policy

The Inter-American Development Bank (IDB) began the process of public consultations on the new Framework for Environmental and Social Policy. It will have both face-to-face and virtual instances and will be extended throughout the year 2020.

“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”.

With a statement on its website, the IDB announced the start of virtual and face-to-face public consultations on the draft of the new framework for environmental and social policy. According to the bank, this new framework aims to strengthen the environmental and social sustainability of the bank’s operations and, in turn, be more effective in responding to the challenges faced by the countries of the region to achieve the long-awaited growth. sustainable.

The Environmental and Social Policy Framework contemplates safeguards policies, lessons learned and good practices accumulated over the years. In addition, the policy mentions the bank’s commitment to environmental and social sustainability, and the 10 performance standards that borrowing member countries must meet.

Also, the draft policy contemplates environmental and social risks and impacts and highlights advances in human rights, gender equality, non-discrimination and stakeholder participation.

According to the consultation plan approved by the IDB Executive Board, the public consultation process will be significant, inclusive and transparent. However, a large part of civil society that has been working on agendas linked to the IDB over the last few years doubt that this is really the case, being guided by the bad experiences of the most recent public consultations carried out by the institution, which They characterized by their shortcomings in terms of public participation and transparency.

In-person consultation processes will take place at the Bank Headquarters in Washington D.C. and in some countries of Latin America and the Caribbean, Europe and Asia. Those interested in participating in face-to-face consultations may do so by registering here.

On the other hand, those who want to participate in virtual consultations, can send comments on the draft of the new policy through the website www.iadb.org/es/mpas or by sending an email to bid-mpas@iadb.org. The first phase of comments can be made until April 17.

Why is it important to participate?

For several reasons, it is necessary that civil society, citizens and, above all, indigenous communities and communities affected or potentially affected by IDB or IDB Invest operations actively participate in this process, contributing their experience and its recommendations and suggestions regarding the environmental and social safeguards of the institutions.

First, because both the IDB and the IDB Invest are, today and despite the diversification of financial actors operating in the region, key actors in financing for development in Latin America and the Caribbean. According to the Bank itself: in 2018, with a historical amount of US $ 17,000 million approvals, the IDB and the IDB Invest were consolidated as the main source of multilateral financing for Latin America and the Caribbean. The IDB approved a total of 96 sovereign guaranteed loan projects for a total financing of more than US $ 13.4 billion, and disbursed more than US $ 9.9 billion. In turn, 2018 was a record year for IDB Invest, with approvals of US $ 4,000 million, 26% more in volume and 21% more in number of transactions than the previous year. The IDB Invest extended its support to sectors such as infrastructure and Fintech, adding to education, tourism, water and sanitation, transport and energy. In the case of Argentina, the IDB has historically been the main multilateral partner for the country’s development, with an average of recent annual approvals of US $ 1,360 million. The current active portfolio with the public sector is 54 operations for an approved amount of US $ 9,206.4 million and an unpaid balance of US $ 3,874.7 million, according to the information provided by the Bank itself.

Second, because a robust and effective system of environmental and social safeguards is key to avoiding the impacts at the socio-environmental level that, in many cases, bring infrastructure projects financed by institutions such as the IDB or the IDB Invest. When the design, application or implementation of environmental and social safeguards fails in these types of projects, the impacts and consequences especially in the communities involved are often complex, and unfortunately in many cases, irreversible. Cases such as Camisea in Peru or Hidroituango in Colombia reflect the bitter consequences of the bad, or even the lack of application of socio-environmental safeguards in projects financed by the IDB Group.

Third, because an active, informed, responsible and coordinated participation by the key actors of civil society and the indigenous and affected communities of the region would contribute to the objective of avoiding a possible (and latent) dilution of the system of environmental and social safeguards from both the IDB and the IDB Invest. Recent experiences of dilution of environmental and social regulatory frameworks after review and “modernization” processes not only in related institutions such as the World Bank or the International Finance Corporation (IFC), but also in the national regulatory systems of the countries of The region clearly reflects a trend that the IDB Group seems not to want to escape.

Sofia Brocanelli

Gonzalo Roza

Contact

Gonzalo Roza, gon.roza@fundeps.org