Tag Archive for: BID Invest

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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.

 

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Contact

Gonzalo Roza, gon.roza@fundeps.org

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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.

 

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Author

Candela Jauregui

Contact

Gonzalo Roza, gon.roza@fundeps.org

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IDB Annual Meetings were held with limited civil society participation

Within the framework of the Annual Meeting of the Inter-American Development Bank (IDB), held in Panama, a group of civil society organizations met with the president of the Institution, Ilan Goldfajn, in an attempt to strengthen the link between the parties.

“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”.

Between March 16 and 19, the Annual Assembly of Governors of the Inter-American Development Bank (IDB) and IDB Invest was held in Panama City. It is a debate forum in which the members of the institution, together with those who preside over the central banks and other high-level authorities, discuss and address issues on issues considered to be a priority.

In the opening speech, the current president of the IDB, Ilan Goldfajn, outlined some of the institution’s priorities, which revolve around social issues such as food security, poverty, inequality, health, and education. In turn, he emphasized the mitigation of climate change and adaptation to it, stressing the need to deal with the increasingly frequent natural disasters in the Latin American and Caribbean region. The importance of preserving the biodiversity through the elaboration of an Amazon Regional Program.

The Board of Governors commissioned the preparation of a capital increase proposal for IDB Invest in order to implement a new business model that increases its impact on development through the private sector. In addition, he reiterated the importance of preparing a new Institutional Strategy proposal for the IDB Group, whose approval is scheduled for the next annual meeting in 2024.

The limited participation of civil society

After repeated requests made by a group of civil society organizations, the Bank authorized their participation in the event, although in a limited manner and closed to those who received an invitation. In addition, it was possible to arrange a meeting with the president of the IDB on March 17. In said meeting, the need to generate spaces for dialogue and express the demands of civil society in relation to the bank was raised. Both the possibility of participating in the event and the possibility of meeting with the president represent positive developments, although it remains to be seen if these are real changes in the institution. For now, the bank has invited to continue the dialogue in the coming months to achieve a more effective participation in the annual meetings of 2024.

From Fundeps we have been following and participating in this process together with organizations in the region that make up the IDB Working Group, and we will continue actively in the dialogue processes proposed by the bank.

 

More Information
– Governors endorse the vision, priorities and plans for the IDB Group | IADB
– Open letter from civil society organizations to IDB President Ilan Goldfajn – Fundeps
– The Brazilian Ilan Goldfajn is the new president of the IDB – Fundeps
– Open letter to the IDB for the election of a new presidency – Fundeps

 

Authors
Candela Jauregui
Valentina Rasso

Contact
Gonzalo Roza – gon.roza@fundeps.org

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Open letter from civil society organizations to IDB President Ilan Goldfajn

More than twenty organizations from Latin America and the United States addressed a letter to the president of the Inter-American Development Bank (IDB) Ilan Goldfajn. They ask that the Bank strengthen its work by committing itself to respect for Human Rights and the protection of the environment and that spaces be created for greater articulation with 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”.

The organizations, members and allies of the Coalition for Human Rights in Development alluded in the letter to the commitment assumed by Goldfajn in his inaugural speech as president of the Bank to “take advantage of all opportunities for dialogue” and collaboration with governments, the sector private sector, academia and civil society to solve regional problems.

To strengthen the articulation with civil society, the organizations urged the Bank to open a space for dialogue with civil society at its Annual Meetings, not only because it is a good practice implemented by other multilateral organizations, but also because it is a unique opportunity. to include communities affected by projects.

Since 2017, the group of signatory organizations of the letter has been monitoring and enriching the Bank’s policies and projects that it hopes to continue carrying out. The organizations have contributed to the IDB Environmental and Social Policy Framework, updates to the Independent Consultation and Investigation Mechanism policy, and the Bank’s Access to Information Policy review process.

The organizations seek the IDB to ensure in its practices and operations the promotion and respect of Human Rights, particularly of indigenous peoples, and the protection of key ecosystems in the fight against climate change.

The next Annual Meeting of the Boards of Governors of the IDB and IDB Invest will be held in Panama from March 16 to 19.

Signatory organizations:

  1. Accountability Counsel
  2. AMATE El Salvador
  3. Articulación Salvadoreña de Sociedad Civil para la Incidencia en las Instituciones Financieras Internacionales (ASIFI)
  4. Asociación Ambiente y Sociedad
  5. Asociación Interamericana para la Defensa del Ambiente (AIDA)
  6. Bank Information Center
  7. Center for International Environmental Law (CIEL)
  8. Coalición para los Derechos Humanos en el Desarrollo
  9. Cohesión Comunitaria e Innovación Social A.C. (México)
  10. Conectas Direitos Humanos
  11. Derecho, Ambiente y Recursos Naturales (DAR, Perú)
  12. Ecoa – Ecologia e Ação
  13. Fundación para el Desarrollo de Políticas Sustentables (Fundeps)
  14. Fundación CAUCE: Cultura Ambiental – Causa Ecologista. (Argentina)
  15. Gender Action
  16. International Rivers
  17. International Accountability Project
  18. Mesa de Discapacidad y Derechos (Perú)
  19. Plataforma Internacional contra la Impunidad
  20. Protection International Mesoamérica
  21. Sociedad y Discapacidad – SODIS (Perú)
  22. Sustentarse (Chile)
  23. Wetlands International / Fundacion Humedales (Argentina)

Read the full letter here: Letter to IDB President

 

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The Brazilian Ilan Goldfajn is the new president of the IDB

On November 20, the Board of Governors of the Inter-American Development Bank (IDB) appointed Brazilian candidate Ilan Goldfajn, former president of the Central Bank of Brazil and current director for the Western Hemisphere of the IMF, as its new president. After withdrawing the candidacy of Cecilia Todesca, the government of Alberto Fernández supported the candidate promoted by Brazil.

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

On September 26, following the recommendations of the Board of Executive Directors, the Board of Governors of the IDB announced the termination of the executive functions of Mauricio Claver-Carone. After the announcement, and through an official statement, the selection process of the person in charge of the next presidency of the institution began.

The Board of Governors, the IDB’s highest authority, is made up of representatives of the 48 member countries, whose voting power varies according to the capital that the country subscribes to the institution. According to the organization’s press release, “to be elected, the candidate must obtain a majority of the voting power of the IDB member countries, as well as the support of at least 15 of the 28 regional member countries.”

In this way, the candidate must consecrate himself with the majority of the voting power of the member countries to be elected. Voting power fluctuates according to the number of shares owned by each state. The largest investor is the United States, which with 30% of the total funds has a key role in the election. They are followed by Argentina and Brazil, with 11.3% each. Mexico accounts for almost 7.3%, Japan 5%, Canada 4%, Venezuela 3.4% and Chile and Colombia 3.1%. The rest is divided into small percentages from different countries.

The new president of the Bank will assume his functions for a period of five years with the possibility of being re-elected only once, and will be responsible for managing the daily affairs of the Bank, as well as managing its operations together with the Presidential Office. The president also formulates proposals on the Bank’s general policy and presides over the meetings of the Board of Directors, being able to vote only in case of a tie.

The alliances behind the election

The new president-elect was consecrated with 80.8% of the votes, and was proposed by the government of Jair Bolsonaro in view of a candidate who would bring consensus to the region after turbulent periods for the Bank, following the dismissal of the former president Mauricio Claver-Carone for violations of the code of ethics. In this way, and thanks to the support of the United States, Canada, and at the last minute from Argentina, Ilan Goldfajn managed to position himself as the new president of the IDB.

It is worth noting the late support of Alberto Fernandez to back the candidacy of the Brazilian; despite his intention to position Cecilia Todesca Bocco as the first woman and the first Argentine to preside over the IDB. However, as a result of the change in its position and the support for Goldfajn, Argentina managed to keep three positions: the Vice Presidency of Sectors, the Infrastructure Management, and a new Institute of Gender and Equality, which will be part of the new management of the IDB.

With annual loans of around 14,000 million dollars, the IDB is the largest source of financing in the region and the change of leadership is essential for the institution to refocus its attention on Latin America after two years of a US presidency.

Prior to the appointment of Goldfajn, from Fundeps and together with a group of civil society organizations in the region, we present an open letter in which we urge those who make up the Board of Governors of the IDB to ensure a transparent selection process and urge the Bank to ensure that the designated person has:

  • Knowledge of the region and experience working with its institutions and communities.
  • Commitment to human rights, sustainable development and the work of human rights defenders.
  • Comprehensive experience and vision on sustainability and environmental protection.
  • Commitment and openness to include civil society and communities affected by the projects.
  • That it prioritize the discussion for the development of a framework for reparation to the affected communities.
  • Lead by example and act in accordance with the highest ethical standards.
  • Commitment to regional and international agreements and treaties that address climate change, the protection of biodiversity, the defense of human rights and sustainable development.

It remains to be seen if Goldfajn, in the course of his tenure, manages to live up to and meet at least part of these requirements. In any case, we believe that a historic opportunity has been wasted to finally position a woman in the presidency of the Bank, a pending account of this type of multilateral institutions. Beyond the progress made by the IDB in generating job opportunities for women and their number in management positions, it is estimated that 3 out of 14 seats on the executive boards are occupied by women; in the alternate executive directorates, out of 12 chairs, only one is occupied by a woman. What gives rise to the claim to this type of organizations to promote specific spaces for participation for women and dissidence in the most hierarchical positions, which allow breaking the glass ceiling.

More information:

Authors:

Candela Jauregui

Clara Labat

 

Contact:

Gonzalo Roza, gon.roza@fundeps.org

 

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Open letter to the IDB for the election of a new presidency

Given the opening of a new election process for the presidency of the IDB group, civil society organizations in the region and communities affected by projects, we sent an open letter with recommendations on the profile of who will preside over the Bank.

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

In the letter we urge those who make up the Board of Governors of the IDB to take advantage of this opportunity so that the person who is selected is someone with probity, capable of leading the transformations that the institution requires today and of effectively facing the emergencies and environmental and social challenges in Latin America and the Caribbean.

Likewise, we consider that the job description must be clear, the selection process transparent, and we urge the Bank that the person who is selected have:

  • Knowledge of the region and experience working with its institutions and communities. Commitment to human rights, sustainable development and the work of human rights defenders.
  • Comprehensive experience and vision on sustainability and environmental protection. Commitment and openness to include civil society and communities affected by the projects.
  • That it prioritize the discussion for the development of a framework for reparation to the affected communities. Lead by example and act in accordance with the highest ethical standards.
  • Commitment to regional and international agreements and treaties that address climate change, the protection of biodiversity, the defense of human rights and sustainable development.

The election is scheduled for November 20, with voting power varying according to the number of shares held by each member country. The person who is finally appointed to the presidency of the IDB Group has the opportunity to lead a Bank that is stronger, more responsible, more effective and, above all, closer to the peoples of the region, leading the way towards truly sustainable and inclusive development.

Contact

Gonzalo Roza – gon.roza@fundeps.org

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IDB: the president was dismissed and the possibility opens for a Latin American woman

On Monday, September 26, following the recommendations of the IDB’s Board of Executive Directors, the Board of Governors decreed the termination of Claver-Carone’s functions as President of the Bank after the violation of various ethical standards of the institution, which marked the opening of a period of 45 days for the countries to propose their candidatures. During this period, the executive vice president, Reina Irene Mejía Chacón, will act as president under the direction of the Executive Board.

“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”.

Two years ago, in October 2020, Donald Trump promoted the American Mauricio Claver-Carone to the presidency of the IDB. The context was advantageous for Washington as it was the first American presidency since the organization’s creation.

It should be remembered that although the IDB Constitutive Agreement does not establish any conditions in relation to the nationality of the person who should hold the presidency, there is an unwritten rule since its very creation by which the organization must be directed by a person from the region. It was even one of the conditions for which it was finally accepted that the Bank’s headquarters be in Washington DC.

In terms of geopolitics, this strategy constituted the IDB as a vehicle through which the United States could increase its influence in the Latin American region and achieve a balance of institutional power: it could discern regarding the granting and destination of credits by the institution and thus dissipate the presence of other powers in the region, as is the case of the Chinese giant.

The origins of the Claver-Carone impeachment

The Board of Governors’ decision dates back to an anonymous misconduct complaint filed against Claver-Carone. From this, the board hired the legal firm Davis Polk to investigate the facts. As a result of the results of the investigation, the decision was made to dismiss the leader of the institution. Claver-Carone is accused of having maintained a romantic relationship with an employee and of having benefited her financially, which implies the violation of several internal ethical standards of the agency, while the IDB prohibits intimate relationships of superior personnel with direct dependents. The complaint was aggravated by Claver-Carone’s refusal to cooperate fully with the investigation and by creating a climate of fear of retaliation among Bank staff.

In this way, the deficit of legitimacy that accompanied the origins of the Claver-Carone presidency, was combined with a deficit of legitimacy, and today they lead to a crisis of leadership.

In this context, while waiting for the candidacy proposals for the presidency of the IDB, it is worth asking what are the alternatives at the regional and institutional level?

In terms of regionalism, this is an excellent opportunity to renew the (deteriorated) intra-regional dialogue in Latin America and the Caribbean and deepen consensus-building practices. In order for the region to obtain an advantage in the presidential elections of the international organization, it should achieve consensus and convergence when choosing candidates. In this way, it would prevent a repetition of the 2020 scenario where having offered several candidacies eroded the chances of winning the elections.

In particular, Brazil could take advantage of this scenario to renew its regional leadership role, as it is one of the Bank’s largest shareholders along with Argentina and the United States, together with almost 53% of the voting power. In any case, the country is currently immersed in the campaign for the presidential elections, the result of which may influence the position it adopts regarding the transition in the IDB.

In institutional terms, it is an opportunity to renew the strategies through which the institution promotes its main objective: to achieve the development of Latin America and the Caribbean by improving the quality of life, reducing poverty and inequality. In this sense, participation in the IDB should encourage regional integration in Latin America and the Caribbean and allow the development of the Bank as a bridge between the region and the world. Increasing regionalism and the participation of the countries that make up the region would strengthen the development paths and the insertion of Latin America and the Caribbean in the international context. In addition, it would allow the IDB to stand out as a Bank, not pro-American or pro-Chinese, but pro-Latin American, allowing a convergence between globalization and regionalization when it comes to pursuing development.

Finally, in terms of the qualities that the person designated for the presidency of the IDB should have, this is a great opportunity for a Latin American woman to take charge of the leadership of the institution.

In fact, the names of three Latin American women are beginning to resonate as potential candidates. Among them: Michelle Bachelet, former president of Chile, Laura Chinchilla, former president of Costa Rica; and Alicia Bárcena, head of the Economic Commission for Latin America and the Caribbean (ECLAC).

In this sense, some aspects are key: 1) that the person has outstanding training and experience and an effective modernization proposal for the Bank with an emphasis on social and environmental issues; 2) to adopt a clear and express commitment to multilateralism and the vindication of the legitimacy of the presidential position; and 3) that it complies with transparency, accountability and the participation of civil society in the actions of the Institution.

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Author

Victoria Marquez

Contact

Gonzalo Roza – gon.roza@fundeps.org

 

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Projects financed by the IDB during the pandemic in Latin America: risks and benefits for whom?

On June 16, we participated in the WEBINAR in which the document was presented: “Investments of the Inter-American Development Bank for the response and recovery to COVID-19 in Latin America. Risks and benefits for whom?”, created in collaboration with more than 10 civil society organizations, including Fundeps.

“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”.

It is widely known that the Multilateral Development Banks have a fundamental role in the response and recovery to COVID – 19, this is due to their ability to rapidly mobilize financing to support and help countries respond to the impacts it has generated. this unforeseen situation. Within Latin America, the Inter-American Development Bank (IDB) plays a key role in this regard, since, in 2020, it approved 7.9 billion dollars and, as of June 2021, it had approved 597.6 billion dollars.

There is a tendency on the part of the Multilateral Development Banks to consider projects related to health issues, as having a lower risk of environmental and social damage, so the application of safeguards to these projects tends to be less rigorous. Added to this is the fact that many of the projects were approved with a rapid disbursement or fast track modality, that is, with shorter preparation times and environmental and social due diligence.

However, the findings of the presented report show that the implementation of this type of health projects and others in the context of the pandemic, have a significant risk of harm, especially when the groups most susceptible to contracting COVID-19 are excluded. of access to the benefits of the project. The context of crisis is worrying due to the tendency of the Multilateral Development Banks to make environmental and social parameters more flexible in pursuit of rapid responses.

The document presents six recommendations resulting from the analysis of the post-pandemic Latin American situation. They emphasize the importance of taking into account marginalized groups, such as those most likely to be affected and relegated in a crisis situation, and highlight the need for transparency and risk assessment to prevent extraordinary measures that restrict space from being perpetuated. public.

Within this framework, the webinar aimed to generate a space for discussion on the main findings in relation to the social and environmental due diligence processes of IDB investments, approved during the COVID-19 pandemic.

At Fundeps we promote the application of socio-environmental regulatory frameworks, accountability mechanisms and access to information in projects linked to financing for development, even (and even more so) when they occur in an extraordinary context of pandemic.

 

View Report

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Authors

  • Lourdes Alvarez Romagnoli
  • Valentina Rasso

Contact

Gonzalo Roza – gon.roza@fundeps.org

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We send observations to the IDB to strengthen its link with civil society

In the framework of the review process of the second Action Plan of the IDB Group-Civil Society (2022-2024), more than 20 civil society organizations sent a letter to the President of the IDB, Claver-Carone, with observations and recommendations to strengthen the IDB’s relationship with civil society and affected communities.

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

While we welcome the fact that the IDB is reviewing the Action Plan to strengthen the relationship with civil society and affected communities, we believe that the way the review is being structured inhibits civil society participation in the process. For this reason, the recommendations sent to the President and his Executive Secretary are oriented in two ways:

  • On the one hand, the Bank is asked to provide specific spaces and complete and accessible information so that civil society, including indigenous peoples, local communities, people affected by IDB Group projects (including MICI applicants), and organizations critical to the IDB can participate and get involved effectively. In this sense, it is essential that agendas begin to be built in a participatory way, that invitations to consultations are at least 30 days in advance and that they include a wide range of stakeholders. The optimization and adjustment of public consultation processes is also necessary, since they are currently excessively rigid and do not promote a meaningful or direct discussion between the parties, ultimately generating low-productive inputs that continue to weaken transparency and accountability in the Bank.
  • On the other hand, it is emphasized that after the consultation or dialogue, the IDB must guarantee continuous communication that keeps the interested parties informed and provide information on how their contributions influenced the decisions taken.

We believe that the IDB Group’s commitment to civil society and communities affected has been and continues to be worryingly weak compared to other peer institutions. The IDB president has the opportunity to lead the change towards a more responsible bank and must foster an institutional culture in which it is accepted that the Bank makes mistakes and is more responsive not only to interactions and constructive criticism from external actors, including civil society and affected communities, but also to their internal accountability mechanisms.

To access the complete letter sent to the IDB, access here.

More information

How can the IDB Group strenghthen engagement with civil society and projects affected communities? – Bank Information Center (BIC)

Carta Grupo BID-Relacionamiento con Sociedad Civil

Recommendations to strengthen the IDB Group’s relationship with civil society and affected communities – Coalición para los Derechos Humanos en el Desarrollo

Author

Camila Victoria Bocco

Contact

Gonzalo Roza – gon.roza@fundeps.org

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Civil society responds to the MICI evaluation

Last April 2021, the Office of Evaluation and Oversight (OVE) of the Inter-American Development Bank (IDB Group) published the Evaluation of the Independent Consultation and Investigation Mechanism (MICI). After the evaluation, the MICI has modified its policy, excluding the clause that prevents the registration of complaints that are part of open national judicial processes.

“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 evaluation carried out tried to determine if the MICI is effective and efficient in three areas: (1) the resolution of complaints, (2) the promotion of institutional learning, (3) accessibility, objective independence, impartiality and transparency. Finally, OVE made 5 general recommendations on how the Board, the Bank, and the MICI can improve the application of the IDB’s social and environmental safeguards.

In general, the document identified elements that impede the effective functioning of the MICI, including accessibility barriers, unnecessary limitations to its independence, and a systemic lack of remediation by the IDB Group when projects do not comply with safeguards. Fundeps, together with other civil society organizations, decided to publish a response and send recommendations / comments to the MICI.

Below, we summarize our points of discussion and concern for each of the recommendations made by OVE:

Recommendation # 1 – Implement and improve the Bank’s management system for environmental and social claims: We agree with OVE’s findings that show that the requirement for communities to make prior contact efforts with the Administration is a problematic barrier for access to the MICI. Affected persons who present complaints to the MICI have experienced first-hand the ineffectiveness of presenting certain complaints to the Administration. However, OVE’s proposal to establish a Bank’s own management mechanism is a measure that we consider incomplete. To ensure the effectiveness of the mechanism and the Bank, it would be best to remove the requirement that the communities first contact the Administration.

Recommendation # 2 – Repeal the legal exclusion: The report’s findings on the impropriety of the legal exclusion, and its severe restriction on accessibility, are clear. We applaud the report for mentioning that the legal exclusion should be removed. The role of an accountability mechanism within an institution is unique and different from judicial procedures. A mechanism should examine compliance with the institution’s own standards, a mandate that does not overlap with the courts or tribunals. With the approval of the OVE Evaluation by the Board, the decision to remove the legal exclusion becomes effective as of July 1, 2021. However, the resolution approving the removal of the legal exclusion should be publicized or published. to ensure that the decision to remove this requirement is widely known.

Recommendation # 3 – Strengthen the independence of the MICI: The importance of the independence of the MICI, as well as other accountability mechanisms, cannot be stressed enough. Independence is an essential condition for other attributes such as objectivity, impartiality, and transparency. The report finds the need for the MICI to ensure the approval of the Bank’s Board of Directors before starting the investigations, as a major problem that has generated “situations that compromise the independence of the mechanism.” From civil society we believe that to ensure its independence, the MICI should have the authority to determine when to initiate an investigation without approval from the Board. This is a good practice that, as noted by the report, is adhered to by many other mechanisms. As an alternative to the current policy, to mitigate the detrimental effect on the independence of the MICI, the policy should be updated by specifically and closely outlining the technical reasons for the Board to review the MICI’s decision to initiate an investigation.

Recommendation # 4 – Ensure corrective action when there are findings of non-compliance and associated damage: The Evaluation clearly stated the lack of remedy for cases of verification of compliance being that “they have not had concrete results for the applicants, despite the findings of non-compliance and related damages established by the MICI ”. We have seen this in our case work. The recommendation of the Evaluation so that all the actors – the Board of Directors, the Administration and the MICI – adhere to the practice of consistently providing corrective actions, is a step in the right direction. However, this result would be best achieved with a clear change in the policy that includes points such as: (a) Consultations during the development of corrective action plans, (b) approval of action plans based on their sufficiency, (c) monitoring compliance with action plans, and (d) alerting the Board of Directors in cases of non-compliance with the plans. Finally, while OVE’s assessment documents multiple instances in which communities have been left without remedy, despite compliance verification reports finding a cause of harm in the Bank’s non-compliance, unfortunately no recommendation is provided for these communities.

Recommendation # 5 – Strengthen the internal capacity of the MICI: One of the focuses of the MICI Evaluation of its internal functioning is the dependence on the model of consultants for the staff. The importance of MICI staff in relation to their effectiveness in resolving complaints is evident. The Bank should commit to providing the human and financial resources necessary to implement this change and avoid that the lack of human resources translates into delays during the complaint processes. The Bank should also ensure the increase of its capacity in terms of resources as necessary.

Now, from civil society we consider that public and inclusive consultations are required for the implementation of all the recommendations. Likewise, we believe that the implementation of these recommendations will require changes to the MICI policy. The steps taken to ensure compliance with social and environmental safeguards and accountability in cases of non-compliance should be reported by those affected by the projects (who live and work in the implementation sites). To hear from those affected and their representatives, the IDB and the MICI should consult publicly about their plans to implement the
OVE recommendations.

The MICI plays a fundamental role within the IDB, providing a channel for the people affected by the projects, beneficiaries of the Bank’s work, to file their claims in search of remediation. However, as OVE’s Evaluation makes clear, there are gaps in the current practices of the MICI – and related practices of the Board and Management – that prevent the effectiveness of the mechanism. To ensure the legitimacy of the MICI, the Bank has to act to address these issues fully.

More information:

Internal IDB evaluation raises the need for reforms in the operation of the MICI

Autora: 

Agustina Palencia

Contacto:

Gonzalo Roza – gon.roza@fundeps.org

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Internal IDB evaluation raises the need for reforms in the operation of the MICI

On April 1, the Office of Evaluation and Oversight (OVE) presented an evaluation report of the Independent Consultation and Investigation Mechanism (MICI) corresponding to the period 2015-2020. The evaluation examined the Mechanism’s policy and its application, with the aim of informing the Boards of the IDB and IDB Invest on the extent to which the MICI has been an effective and efficient mechanism in the resolution of claims associated with environmental and social impacts of projects financed by the Bank.

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

In its report, the Office of Evaluation and Oversight (OVE) determined that the current MICI policy corrected important issues identified in its last evaluation of 2012. Among the main advances, it highlighted the solution to the problems of accountability and associated conflicts of interest. to the previous organizational structure, as well as the duplication problems of the eligibility instance; the establishment of deadlines for the management of requests; and the creation of instances for the participation of the administration. Likewise, he highlighted a greater consistency between the policy, the guidelines developed, and the associated processes.

The evaluation also highlighted the progress made in the internal functioning of the MICI, as a result of the restructuring of the mechanism, as well as the process of consolidation and institutional learning. The mechanism has been able to define its work plan and manage its human and budgetary resources independently of the IDB Group administration.

However, judicial exclusion, a key issue, remained pending. It is one of the exceptions of the internal policy to the eligibility of applications and establishes that those matters raised in an application that are being the subject of arbitration or judicial processes in a member country of the IDB Group are not eligible.

Although judicial exclusion was identified by OVE in 2012 as a limiting factor for the effective and independent functioning of the MICI, it was maintained in the reformulated policy in 2014. Likewise, there are other limitations that have emerged in the application of the policy in recent years. 5 years but that, to a large extent, have been paid for by the MICI. This shows that there is sufficient margin for the mechanism to manage the limitations of the current policy.

Access to the MICI

Regarding access to the mechanism, OVE identified that the MICI is not yet well known among applicants. Realizing that between the different institutional levels there is a lack of consensus on the importance of publicizing the mechanism and the way to achieve it. An issue that should not be overlooked, since access to the MICI depends on the knowledge that people have about the existence of the mechanism.
For their part, those who were able to access the MICI found that their applications were not registered due to the difficulty in complying with some requirements. In this regard, the IDB Group does not have a claims management system, which makes it impossible to know the number of concerns that the administration receives.

Case management

Regarding case management, although the MICI is operating in accordance with the principles established in its policy: independence, objectivity, impartiality, transparency and efficiency; Their ability to act independently is affected by being subject to the decisions of the Board of Executive Directors.

In accordance with its policy, the Board controls the possibility of initiating an investigation in the Compliance Verification Phase (FVO) and decides whether or not to approve the recommendations of an MICI investigation. Originally, the approval of the Board of Directors to continue with an investigation was thought as a short procedure but it has come to be conformed as a contentious procedure affecting the independence of the MICI.

Finally, many ongoing investigations have presented delays related to the complexity of the projects and themes. Complaints were also filed by the applicants about the length and slowness of the processes in the Compliance Verification Phase (FVO), which reduces the possibilities of effective redress.

Recommendations

After identifying the main difficulties in the current operation of the mechanism, OVE proposed a series of recommendations to be adopted by the MICI. Among the main ones, in the first place, the elimination of judicial exclusion and the strengthening of its internal capacities stand out. In turn, OVE highlighted the need to reinforce the independence of the mechanism and ensure the adoption of corrective measures when there are findings of non-compliance with the policies and related damages.

Remembering that one of the main objectives of the IDB Group is to improve the quality of life in the region, monitoring its policy is a key tool to guarantee compliance with socio-environmental safeguards and transparency in the development of projects. funded. If the recommendations made by OVE are applied, it would imply a declaration of commitment by MICI to the users, who, among other complaints, have systematically insisted on an improvement in the conditions for accessing the mechanism.

Based on this evaluation, one might wonder if the limitations of the current policy can be rectified by incorporating OVE’s recommendations or if these limitations, on the contrary, make a new comprehensive review of the policy necessary, a measure that has been ruled out by OVE until the moment.

At Fundeps, we consider that there are still many obstacles to overcome to guarantee an effective and independent action of the mechanism, especially regarding the need to nullify judicial exclusion. However, we highlight the importance of these types of entities that are beneficial for both the public and private sectors, and especially for the communities affected by IDB Group investments.

More information:

Authors:

Clara Labat 

Julieta Boretti

Contact:

Gonzalo Roza, gon.roza@fundeps.org

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We participated in a discussion with the new MICI director, Andrea Repetto

On April 27, we participated in a discussion with civil society organized by the Independent Consultation and Investigation Mechanism (MICI) of the IDB, on the occasion of the recent inauguration of its new director, Andrea Repetto. Civil society organizations, individuals and people from the public and academic sectors from different countries participated. One of the main points of discussion revolved around the evaluation of the Mechanism’s operation recently carried out by the Office of Evaluation and Oversight (OVE) of the IDB Group.

“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 Independent Consultation and Investigation Mechanism (MICI) was established in 2010 as an instance of last resort so that people who consider themselves affected by projects financed by the IDB Group can turn to the mechanism in search of a solution. In this regard, it should be noted that the complaints submitted must relate to non-compliance with the bank’s operating policies and not to other national and / or international regulations.

At the beginning of the discussion, the new director introduced herself personally, conducted a review of the most outstanding events of 2020 and indicated what the priorities of the mechanism will be during 2021.

Case management in times of COVID-19 and management priorities during 2021

In 2020, the MICI took actions to mitigate the impacts of the pandemic on claims management. Managed a total of 21 claims from communities potentially affected by projects financed by the IDB Group in 9 countries: 17 claims refer to IDB projects with the public sector and four to IDB Invest operations with the private sector. In addition, the MICI began, for the first time, a completely remote dispute resolution process in Colombia (Ruta del Cacao).

Similarly, with the recent assumption of Repetto as director, 2 priority areas were identified during 2021: on the one hand, the opening of the mechanism, seeking to make it more accessible to the communities that need it and, on the other, institutional learning, with The objective of adding more value to the IDB Group and reinforcing its accountability and sustainability.

OVE’s evaluation of the MICI

OVE carried out a first evaluation of the MICI in 2012 and identified significant problems in terms of its policy, structure and operation, recommending ending the pilot phase of the MICI and reformulating its policy and structure. Thus, in December 2014, the Bank’s Board of Directors approved a new policy and structure for the mechanism and, since the beginning of 2016, the MICI is also responsible for managing requests related to IDB Invest operations, that is, the private sector.

In the following evaluation (2015-2020), 19 cases were analyzed (between December 2014 – June 2020) and it was concluded that the MICI, in general, is operating in accordance with the principles established in its policy: independence, objectivity, impartiality, transparency and efficiency and that the current policy corrected important issues identified by OVE in its 2012 evaluation as limiting the proper functioning of the MICI. Similarly, there was greater consistency between the policy, the guidelines developed, and the associated processes. OVE also highlighted the consolidation of capacities in conflict resolution within the MICI.

However, there is still room for the MICI to deepen its efforts to maximize its contribution to the IDB Group’s system of safeguards and environmental and social standards.

A key issue that remained pending is judicial exclusion, which continues to be an important factor limiting the effective and efficient functioning of the MICI.

OVE also found that some requirements to access the mechanism are difficult for applicants to meet, such as the need to present their concerns to management before resorting to the MICI. In this regard, it should be mentioned that the difficulty of complying with the requirement of prior contact with the administration had to do, to a large extent, with the lack of a complaints management system within the IDB Group during the period under evaluation (2015 -2020) and one of the OVE evaluation recommendations points towards that goal.

Promotion of access and risk of retaliation

OVE indicated that the mechanism is not yet well known despite the important efforts of the MICI to make it known, including important work in the area of ​​attention to the risk of retaliation that has important implications for safe access to the mechanism. Nor is it clear that at the institutional level there is consensus on the importance of publicizing the mechanism and how to achieve it. Not a minor issue, since access to the MICI depends on the knowledge that people have about the existence of the mechanism.

Finally, another point that the evaluation indicates that should be strengthened is the independence of the mechanism, a fundamental issue since the credibility of the mechanism depends on its ability to work independently. Although the MICI is an arm of the Board of Directors, its added value depends on the extent to which it can present you with frank and honest reports on complaints associated with IDB Group projects.

Based on these and other observations, OVE made 5 recommendations, directed both to the MICI and to the administration and the Boards of the IDB Group. These include: 1) implementing the management system for environmental and social claims of the IDB Group’s administration so that it is articulated with the MICI, 2) nullifying the judicial exclusion, 3) reinforcing the independence of the MICI, 4) ensuring the adoption of corrective measures when there are findings of non-compliance with the policies and related damages and, finally, 5) strengthen the internal capacities of the MICI.

One might wonder, however, if the limitations of the current policy can be remedied by incorporating OVE’s recommendations or if these limitations, on the contrary, necessitate a new comprehensive review of the policy, a measure that OVE has ruled out in its evaluation.

At Fundeps, we believe that this type of instance is essential to exchange opinions and positions in relation to how the Mechanism could be even more efficient and effective in its interventions to the problems that arise in our region. Likewise, we consider that a strengthening of the mechanism translates into an improvement in the accountability system of the IDB Group as a whole.

We hope that these instances will continue to be repeated over time and we celebrate that the MICI is willing to receive feedback from those who position themselves as users of the mechanism, being able to glimpse the shortcomings that the processes may have.

More information
Author
  • Camila Victoria Bocco
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