Tag Archive for: Global Governance

This document analyzes those issues that have been incorporated and the aspects that have not been incorporated and / or modified from the public consultation process carried out by the IDB. In particular, it emphasizes the need to guarantee the rights of girls, adolescents, women and LGBTTTQ + people so that the human rights of all people are effectively respected and guaranteed (Only spanish)

In the sixth session of the United Nations Intergovernmental Working Group on Business and Human Rights, negotiations were held on the second legally binding treaty to regulate the activity of transnational companies. There is still time for this instrument to come into force, so it is still important that Argentina finalize the review of its National Plan of Action on Business and Human Rights so that the State exercises its responsibility to disseminate and implement the Guiding Principles on the business and human rights.

The United Nations Guiding Principles on Business and Human Rights have emerged as a global standard for businesses and governments to prevent and address business-related human rights violations.

Next year, the Principles will be 10 years old, for this reason, the UN Intergovernmental Working Group, in charge of preparing a legally binding treaty on this matter, has launched in the middle of this year a new project ‘UNGPs10 + / NextdecadeBHR’ with the purpose of outlining the steps to follow for the next 10 years in the area of ​​business and human rights. In addition, it will take stock of the achievements obtained so far and analyze future challenges and existing gaps.

However, the Guiding Principles have worked and function as guides for States and businesses on how to protect and respect human rights and how to make reparation for victims. But, often, the distance between what the Principles have is usually far from the internal regulations of each State. For this reason, many countries have developed National Action Plans -PAN- so that the States are responsible for the dissemination and implementation of the Guiding Principles. Also, the NAPs serve as instruments of change capable of adapting to the local context but they do not hold transnational companies responsible for human rights violations, which is why it is relevant to have a legally binding treaty on this matter.

Thus, efforts to develop a legally binding treaty on business and human rights began in 2014. Since then, the Intergovernmental Working Group has worked to perfect this instrument by improving the content, scope, nature and form of the instrument. Last year, the Revised Draft of the binding treaty was published and discussed at the Annual Forum held in October 2019. In August this year, the Chair of the Intergovernmental Working Group published the Second Revised Draft of the legally binding instrument to regulate the activities of the companies and in October the sixth period of negotiations between the parties involved will be held.

However, until the approval and adoption of the Treaty by the States, the preparation and application of the NAPs continues to be necessary. So how is Argentina doing on this issue?

On the website of The Danish Institute for Human Rights, there is a map that details which countries already have a NAP, which are developing it, and which have other non-state initiatives. Argentina is in the group of countries that is still developing its National Action Plan. Consequently, and due to the importance of having a NAP, in September we made a request for information to the national government, consulting the status of the Argentine National Action Plan on companies and human rights. The response was provided in two parts, first in late September and then the information was completed in mid-October.

The Argentine PAN has already been prepared and for it to enter into force a decree from the President of the Nation is necessary. However, the Nation reported that the Draft Decree for the approval of the National Business and Human Rights Action Plan is under review by government authorities. Moreover, it has not yet been defined whether the participation of civil society through public consultations will be allowed, which is necessary to achieve a greater commitment to guarantee the respect and protection of human rights by the State and companies. transnational corporations and effective remedies for the victims.

When consulting on the position of the national government regarding the legally binding instrument, the Ministry of Foreign Relations replied that Argentina abstained from Resolution 26/9 of 2014, which approves the constitution of an Intergovernmental Working Group for the purpose to develop a legally binding international instrument to regulate the activities of transnational corporations and other commercial companies with respect to human rights. However, Argentina has participated in all the sessions held by the working group and was present at the last session in October this year.

So, it is not only necessary and urgent that the UN Working Group advance in the elaboration and conclusion of the Treaty, it is also urgent that Argentina do the same with its National Plan of Action on business and human rights. As the plans are oriented according to the Guiding Principles, elaborated according to the context of each State, they must be the product of transparent, participatory processes and open to dialogue. For this reason, it is essential that the National Government jointly review with civil society, academia, unions and other interested parties, the draft of the PAN so that it effectively serves as an instrument in the elimination of obstacles and in the promotion of good practices in the compliance with human rights related to business activities.

From Fundeps we will continue to monitor the process of elaboration of the Argentine PAN as well as the International Legally Binding Treaty on transnational companies and human rights.

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  • Sofia Brocanelli

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From today until Wednesday, November 18, the 9th Annual United Nations Forum on Business and Human Rights will take place virtually.

“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”.

Today and until Wednesday, the 9th Annual Forum on Business and Human Rights organized by the United Nations High Commissioner for Human Rights takes place. Due to the pandemic, this year, the Forum will be held virtually, allowing greater participation of organizations and communities from different parts of the world. Under normal circumstances, face-to-face participation in this forum is difficult due to distances and economic issues, so its realization in a virtual format means a great advance.

The theme of this year’s event is “Preventing Business-Related Human Rights Abuses: The Key to a Sustainable Future for People and the Planet”. The Forum brings together companies, investors, government representatives, civil society organizations, community groups, UN agencies, national human rights institutions, unions, academies and the media.

However, due to the Covid-19 pandemic, the Forum will consider how States and the business community should respond to it in a way that respects and protects human rights as well as the need to build a sustainable and people-centered recovery. .

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Gonzalo Roza, gon.roza@fundeps.org 

The Finance in Common Summit, held from November 9 to 12, is the first global summit to be attended by all the world’s development banks and multilateral institutions. Civil society organizations from different regions have demonstrated in the absence of human rights and the voices of the communities on the event’s agenda.

“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 November 9 and 12, 2020, the Finance in Common Summit was held, which was attended by 450 Public Development Banks of the world, multilateral institutions, heads of State, representatives of the private sector, civil society, academia, among others. The event was an initiative of the World Federation of Financial Institutions for Development -FEMIDE- and the International Development Finance Club -IDFC-. It was sponsored by the President of France, Emmanuel Macron and by the French Development Agency -AFD; and counted with the participation of the Secretary General of the United Nations, António Guterres.

The summit focused on the crucial role that Public Development Banks play as capable and necessary actors to provide a collective response to global challenges, agreeing on short-term sustainable recovery measures on the COVID-19 crisis and with an impact on long-term in the environment and in societies. However, the Summit’s agenda did not address human rights, rights that are constantly violated and violated by the investments of development banks. Thus, indigenous peoples, Afro-descendant communities, local communities, and human rights defenders did not have a space to express their concerns and concerns.

This, despite the fact that in September, more than 200 civil society organizations from around the world sent a letter to the French Development Agency requesting that the principles of development that is focused on rights be included and prioritized. humans. Due to the lack of response, CSOs issued a Joint Declaration calling on Public Development Banks -BPD- to invest their financial resources in building a just, equitable, inclusive and sustainable future for all societies in the world. 

This summit should be an opportunity for development banks to modify the way they operate and place democracy, inclusion, equality, solidarity and the common good as the axis of their actions. It is urgent that PDBs commit to financing for fair, equitable and sustainable development, promoting and guaranteeing human rights for all, without neglecting vulnerable and marginalized communities.

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Gonzalo Roza, gon.roza@fundeps.org

Two virtual meetings to learn about the world of the IFIs, their accountability mechanisms, and share useful tools with feminist organizations 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”.

The international financial institutions -IFIs- are one of the most important actors for the countries of Latin America and the Caribbean in terms of project financing. However, it is necessary for the IFIs to have Gender Policies and mainstream the gender perspective in the design, development and execution of the projects they finance, and consider the gender-differentiated impacts they cause.

For this reason, we launched two virtual meetings in which we will learn about the IFIs and share useful tools for organizations made up of diverse and dissident feminities and identities to build capacity to monitor the projects financed by them.

In the first meeting, we will get closer to the world of the IFIs and their accountability mechanisms. It will take place on Tuesday, November 10, at 4:00 p.m. Argentina.

In the second meeting, we will provide tools to obtain information and monitor projects financed by development financial institutions. It will be held on November 17 at 4:00 p.m.

Today, October 28, the Argentine Chamber of Deputies approved the bill to enter our country into the Asian Infrastructure Investment Bank. Thus, the incorporation of Argentina as a Non-regional Member to the bank is made effective.

“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 3, the Argentine Senate approved the bill for the entry of the Argentine Republic to the Asian Infrastructure Investment Bank -AIIB-. The approval of the law was carried out today, October 28, in the Chamber of Deputies by 235 positive votes and 4 negative votes.

The management for Argentina to form part of the Bank began in the first Forum ‘One Strip and One Route for International Cooperation’ held in 2017, in which the previous government management affirmed the country’s intention to be part of the AIIB and the The Bank’s Board of Directors approved the admission of Argentina to the Institution.

The Asian Bank was born in 2015 at the initiative of China and began operating in January 2016. It has 102 members from different regions of the world. AIIB is a multilateral financial institution and, between completed and ongoing projects, has already financed 138 infrastructure projects.

For Argentina, joining the AIIB means an additional alternative to access financing for infrastructure works through a new multilateral organization. However, although it has been proposed as a different alternative to Western multilateral banking, the AIIB does not escape the logic, operation and even institutional structure that characterizes institutions such as the World Bank, the International Finance Corporation or the Inter-American Development Bank. . In this sense, from civil society, criticisms and questions have been raised regarding the transparency, accountability and environmental sustainability of the projects financed by the bank, which should be taken into account by Argentina when receiving financing of this institution.

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Gonzalo Roza, gon.roza@fundeps.org

The process of modernizing the IDB’s environmental and social policies began in January of this year with the first stage of face-to-face and virtual public consultations in the different countries. In Argentina, the face-to-face consultation was held in March in Buenos Aires and the process for submitting comments ended in mid-April. From Fundeps, we prepared and presented to the IDB a document with comments to the MPAS from a gender perspective. In addition, with more than 50 civil society organizations in the region, we sent the IDB a document with recommendations to the MPAS.

“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-July, the IDB published the second draft of the MPAS and began the second stage of virtual consultations for a period of 30 days. In this second stage of consultations, we sent a new document with comments on the second draft of the MPAS from a gender perspective.

The process of modernizing the Bank’s environmental and social policies ended on September 16 when the IDB’s Board of Executive Directors approved the new Environmental and Social Policy Framework -MPAS-. From now on, the IDB begins a period of one year to prepare clients for the implementation of the new framework.

With the new MPAS already approved, it is pertinent to analyze which have been the main modifications incorporated during the process, based on the intervention and active participation of an important group of civil society organizations in the region.

Thus, according to the analysis carried out by the Bank Information Center, the main modifications incorporated in the new Framework have been, in part, the product of the recommendations and suggestions made by the CSOs that make up the Working Group on the IDB. In general terms, one of the main changes in the MPAS Political Declaration stands out as the Bank’s commitment to improve stakeholder participation in accordance with the obligation to respect the right of access to information, participation and justice in environmental issues consistent with the principles of the Escazú Agreement.

Another positive point is the incorporation of the principle of “doing good beyond causing harm” which implies increasing the benefits of sustainable development by asking the borrower to report how the project design will improve the environment and the social issue. In addition, the Bank will carry out its own due diligence taking into account the commitment, history and capacity of the borrower in the development and implementation of the financial operation.

In terms of supervision and monitoring, in the event of noncompliance with social and environmental performance standards, the IDB will work with the borrower by providing technical assistance and greater monitoring of the Bank and stakeholders to achieve compliance with the standards of MPAS performance. On the other hand, regarding the complaint and accountability mechanisms, the Bank added a new provision to the MPAS in which it undertakes not to tolerate any type of retaliation against those who express their opinion and / or opposition to a project financed by the IDB. Thus, a complaint mechanism is established at the project level, in which the borrower must take into account physical, sensory, and cognitive needs of the people who participate.

An important addition to the new MPAS is the exclusion list of activities consistent with the commitments adopted by the IDB to address climate change, that is, it will not finance activities that involve the exploration of oil and gas or the production of energy from the use of the Coal.

Main additions to performance standards

General and gender modifications are highlighted in the Performance Standards (ND), namely:

  • PS 1 Evaluation and Management of Environmental and Social Risks and Impacts: must be applied to all projects financed by the IDB. In addition, the borrower must consider risks and impacts related to human rights, gender, natural hazards, and climate change. In identifying risks and impacts, the borrower has to consider the direct, indirect and cumulative environmental and social impacts of the project. It must also identify the various historically disadvantaged cross-cutting groups in Latin America and the Caribbean, such as women, people of diverse sexual and gender orientation, people with disabilities, Afro-descendants, and indigenous peoples, and implement measures to avoid differentiated impacts on them. The description of the types of risks that the standard makes is highlighted, since by mentioning each of the possible risks, it helps to make them visible and makes the borrower responsible for taking action in this regard.
  • PS 2 Work and Working Conditions: special measures for protection and assistance were incorporated and to address violence, harassment, intimidation and exploitation towards women and people with different sexual orientations and gender identity, people with disabilities, children and migrant workers . In addition, the borrower has the obligation to provide a grievance mechanism for workers in which they can express their concerns and so that they can make complaints of sexual and gender-based violence. On the other hand, this standard, despite the recommendations made, is narrated from an androcentric perspective that does not integrate the needs of girls, adolescents, women and LGTTTBIQ + people. This highlights the lack of a gender perspective that is transversal to all performance standards.
  • PS 3 Resource Efficiency and Pollution Prevention: greater emphasis is placed on the mitigation hierarchy and the “polluter pays” principle. The concept and practice of the circular economy is also recognized. On the other hand, this norm recognizes the disproportionate impact that pollution has on women, children, the elderly, and the poor and vulnerable, however, it continues without making reference to norm 9 on gender equality.
  • PS 4 Community Health and Safety: includes the requirement for the borrower to perform a more detailed analysis of the risk assessment and make adjustments to prevent injuries and illnesses when there are risks that may be adverse to the health, safety and well-being of the people. Regarding gender, the standard refers to PS 9 regarding the requirements to address the risks of sexual and gender-based violence in cases of communal conflict and influx of external workers.
  • PS 5 Land Acquisition and Involuntary Resettlement: in the case of this rule, there is inconsistency with respect to the concept of involuntary resettlement found in the glossary and the one described in the rule. The definition of the glossary is the product of the recommendation made by CSOs where it is defined as “involuntary resettlement when the people affected by the project do not have or cannot exercise the right to reject the acquisition of land or restrictions on the use of land that resulting from a physical or economic displacement ”, on the other hand, in this PS it is defined as“ involuntary when the people affected by the project do not have the right to reject the acquisition of land… ”. On the other hand, the recognition of women as owners in the event of displacement has been an advance. Another limitation in the regulation is that it should not be limited to considering the requirements related to Indigenous Peoples, gender equality and stakeholder participation in accordance with PS 7, 9 and 10, but must include them.
  • PS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources: highlights that PS 1’s risk and impact identification process must consider project-related cumulative impacts on biodiversity and the ecosystem and identify any significant residual impacts . In addition, it provides a more complete definition of critical habitat as it includes legally protected areas or internationally recognized areas of high biodiversity value. Regarding the issue of the gender perspective, this standard continues to require its mainstreaming and the incorporation of the reference to PS 9.
  • PS 7 Indigenous Peoples: is aligned with internationally recognized standards. In addition, it adds that the borrower must respect the rights of indigenous peoples in accordance with national legislation, international law, or indigenous legal systems. On the other hand, in accordance with participation and consent, the requirement is included to use indigenous consultation and participation protocols to ensure their representation as well as that of indigenous women and people of diverse sexual orientation and gender identities. Also, in the evaluation and documentation of the resources of the indigenous communities affected by a project, it is required that it be inclusive in gender and consider the role of women in the management and use of resources.
  • PS 9 Gender Equality: the term Gender Violence was replaced by a more comprehensive and comprehensive term: Sexual and Gender Violence. The recognition that unpaid care work falls on women is highlighted, which hinders the achievement of gender equality and the economic empowerment of women. Another point to note is that the borrower should evaluate the project for potential gender-based impacts and risks that disproportionately affect women, girls, and sexual and gender minorities, and if risks and impacts are identified, the borrower should conduct a Gender Analysis as part of environmental and social due diligence. On the other hand, regarding consultations, the borrower is required to identify and address the obstacles faced by women and people of different sexual orientation and gender identities, ensuring equitable participation.
  • PS 10 Stakeholder Participation and Disclosure of Information: the new PS 10 is consistent with the implementation of rights of access to environmental information, public participation in environmental decision-making as well as access to environmental justice of the Escazú Agreement. Like PS 1, this rule should be applied to all projects financed by the Bank. Regarding gender, the incorporation of PS 9 is considered a great advance in mainstreaming the gender perspective.

The balance that can be made with respect to the new IDB Environmental and Social Policy Framework, compared to the initial version proposed by the Bank at the beginning of the review process, could be considered quite positive, since it is widely incorporated of the recommendations made by CSOs to MPAS during the consultation process. This, despite the shortcomings and problems presented by the public consultation process carried out by the Bank and which was repeatedly highlighted by CSOs in the region as a necessary aspect to improve.

It remains to be seen whether the positive changes introduced in the new MPAS will effectively result in a strengthening of the institution’s social and environmental standards, a necessary issue due to the context of weakening environmental and social standards that the region is going through, and the challenges and threats looming in this regard in a context of post-pandemic Covid-19 economic reactivation. In this sense, the way in which this new framework is implemented and how its application will work in practice will be key. In this regard, it is a priority for the Bank to improve the way in which it engages and relates to civil society and affected communities, and makes them active participants in the process of implementing the new environmental and social framework.

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  • Sofia Brocanelli

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In November, the Argentine government plans to move forward with the signing of the contract for the construction of the fourth Hualong-type nuclear power plant, with Chinese financing.

“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 government of Alberto Fernández advances in the signing of the contract for the fourth nuclear power plant with the Asian giant. The preliminary agreements signed in 2014 and 2015 included the construction of two nuclear reactors. One of the reactors would be made of Candu-type natural uranium, a technology that Argentina handles, and the other reactor would be Hualong-type enriched uranium, of Chinese origin.

However, in the Macri government modifications were made to the agreements with China and in 2018 it was decided to build only the Hualong-type reactor, a model that is planned to be built in this administration. This type of reactor will require an investment of USD 8 billion and for this Argentina will have to import the fuel for the plant to function, which implies that the country depends on foreign suppliers. Several specialists such as José Luis Antúnez, Andrés Kreiner, Gabriel Barceló and Eduardo Barreiro are against this type of reactor and insist on the need to continue with the natural uranium technology that uses the Candu model.

On the other hand, proponents of the construction of the Hualong reactor such as Sabino Vaca Narvaja and Isidro Baschar see its construction as a smart partnership with China that will help strengthen national development. Also, they are negotiating the possibility of the country producing the nuclear fuel that this reactor model needs and thus avoiding dependence on foreign suppliers. In addition, they highlighted that the plant will have a Chinese loan of USD 7,900 million that will begin to be paid when the reactor generates electricity, that is, in 8 years. Regarding the cancellation of the construction of the Candu reactor, Vaca Narvaja and Baschar argued that the Ministry of Energy is working to reactivate it.

Regarding the choice to build nuclear power plants instead of opting for renewable energies such as wind and solar, it raises concern not only because of the higher construction cost but also because of the risks that nuclear energy implies. Detractors of the Hualong nuclear power plant maintain that it would not even be useful to develop the scientific-technological system, that if it occurs in other types of reactors such as the Candu.

The moment chosen to advance in the construction of the nuclear power plant is also questioned since, due to the context of the economic crisis and the restructuring of the debt in which Argentina finds itself, it would not be opportune to take on debt nor is energy necessary nuclear since at present the country has no deficit in energy production.

It should be noted that the commitment to greater nuclear development is closely linked to the type of energy matrix and the development model promoted by the country. In turn, it involves and affects, directly or indirectly, a wide variety of actors. Therefore, from Fundeps we consider that this type of decision should necessarily include a deep debate at the social level, with the necessary transparency and participation of the different social actors involved. Unfortunately this does not appear to be the case.

Author

Sofia Brocanelli

Contact

Gonzalo Roza, gon.roza@fundeps.org

The V Regional Forum on Business and Human Rights in Latin America and the Caribbean, which was held virtually on this occasion, focused mainly on the vulnerabilities that were deepened by the current situation of the COVID-19 pandemic 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”.

From September 7 to 11, the V Regional Forum on Business and Human Rights for Latin America and the Caribbean was held virtually. The objective of this Forum is to host governments at all levels, companies, NGOs, indigenous communities and other civil society organizations in the same space with the aim of functioning as a means for dialogue between these actors.

The Regional Forums have become a key space in Latin America and the Caribbean, and in other regions of the world, so that the aforementioned actors can exchange visions and information on new business practices, legal systems, economic development plans and others. activities that can affect the human rights of different people or groups, report on these events and find solutions in a joint way, covering all spaces of society.

In the wake of the COVID-19 pandemic, this year’s Forum paid special attention to those vulnerabilities that were deepened by the current situation; those people or communities that were already in unfavorable situations, and that, due to the global pandemic, their situation has worsened. The challenges that arise in this complex and unforeseen scenario must be addressed in a comprehensive manner and with all actors in society, from companies and governments to civil society and local communities, in order to overcome this crisis in an economically viable way. and environmentally sustainable.

The task in the post-pandemic will be to recover the standards of living lost during this year, especially due to the loss of employment, at the same time that the productive matrix and the business practices of the countries are reformulated towards a more sustainable and friendly one with the human rights. One of the instruments that can be implemented to achieve this objective are the “United Nations Guiding Principles on Business and Human Rights”, also known as “Ruggie Principles”, drawn up in 2011 within the framework of the UN.

Broadly speaking, these 31 principles can be summarized in three pillars:

  • The duty of states to protect and safeguard human rights and freedoms.
  • The corporate responsibility to respect these rights.
  • Access to damage repair mechanism.

Currently, within the framework of the UN, negotiations and meetings are being carried out to carry out a legally binding international treaty on the responsibility of transnational companies for the human rights of the communities where they carry out their activities. This year, the treaty is in a sixth instance of review that will be discussed at the 9th annual UN Forum on Business and Human Rights, which will take place virtually from November 16 to 18.

We hope that the negotiations underway will culminate in a fruitful agreement for all the actors and above all with an agreement and correct implementation, which is not only limited to good intentions but also really serves to improve the relationship between business activity, the environment environment and local communities.

In turn, there are other general guidelines that can be followed and implemented to achieve the post-pandemic objectives, such as the “OECD Guidelines for Multinational Companies” or the “Tripartite Declaration of Principles on Multinational Companies and Social Policy” of the International Labor Organization (ILO).

Regional forums such as the one held in September, or those of a global nature such as the one to be held in November, constitute key spaces. Not only to advance the aforementioned initiatives underway, but also to deepen dialogue and promote greater articulation between the different actors involved in the processes aimed at ensuring greater promotion and protection of human rights by the private sector.

Unanimously, on September 3, the Argentine Senate approved the entry of our country to the Asian Infrastructure Investment Bank -AIIB, for its acronym in English-. All that remains is the vote of the Chamber of Deputies to make the incorporation effective.

“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”.

Argentina is one step away from becoming a member of the Asian Infrastructure Investment Bank -AIIB- since by means of a unanimous vote, 69 affirmative votes, the Argentine Senate approved the entrance of our country to the institution. Now the Chamber of Deputies needs to deal with the entry project.

Argentina’s intention to be part of the Bank dates back to the administration of Mauricio Macri, where in the first ‘One Strip and One Route for International Cooperation’ Forum held in 2017, he affirmed the country’s intention to be part of the AIIB. That same year, the AIIB Board of Directors approved Argentina’s entry into the institution.

From the region, Ecuador and Uruguay are already members of the AIIB. On the other hand, Bolivia, Chile, Peru, Venezuela and Brazil have requested access to the organization. The Senate of the latter also approved his entry, however he joined as a founding member because he is part of the BRICS and all the founding countries of this bloc enjoy that status.

The AIIB was born in 2015 at the initiative of China, but began operating in January 2016. It currently has 102 members from different regions of the world. It is a multilateral financial institution that, through investments in infrastructure, fosters sustainable economic development, creates wealth, and improves connectivity in infrastructure, promoting regional cooperation with multilateral and bilateral development institutions. The Bank’s strategy is based on the Lean, Clean and Green concept in which it seeks to be efficient, agile, ethical and respectful of the environment and social rights. In addition, the financing to the countries is carried out through public capital and private investments and its financial operations are based on granting credits, guarantees and participations.

Since it began operations, the AIIB has already financed 138 infrastructure projects, between completed projects and projects in progress. In addition, the agency’s invested capital reaches $ 31 billion, which includes approved and requested projects. The sectors in which this organization invests are energy, transportation, telecommunications, infrastructure in rural areas, agricultural development, urban development, water supply, health services, environmental protection, logistics, among others.

Joining the AIIB gives our country the possibility of accessing financing from a new multilateral organization for infrastructure works in the energy sector, transportation and urban reforms, for example. Also, SMEs and other productive sectors could access Bank financing. Finally, another point to note is that this organization provides loans at low interest rates and without economic and political conditions, unlike traditional multilateral organizations such as the IMF.

Also, the bill approved by the Senate enables the Central Bank to access up to 50 capital shares, with a value of 100,000 dollars each, according to the registration admitted by the AIIB for the incorporation of a member country. A part of these shares, specifically 40, correspond to the callable capital and the remaining shares correspond to the capital to be integrated.

The strengthening of the relationship between our country and the People’s Republic of China is intensifying and among its causes, in addition to the partial approval of Argentina’s admission to the AIIB, there is also the strengthening of the Comprehensive Strategic Association with the Asian country, the donation and provision of health supplies in the fight against Covid-19, the progress to test the Chinese vaccine in the Argentine population and the negotiations that are being carried out to make effective the entry of Argentina to the Initiative of the Route and the Silk and the construction of the fourth atomic power station. Therefore, an even stronger tightening of cooperation between the two countries is expected.

Through a statement addressed to the Governors of the Inter-American Development Bank, civil society organizations, peasant communities, indigenous peoples and Afro-descendants and people with disabilities in Latin America and the Caribbean, we express our concern regarding the presidential elections of the Institution. In particular, we express our rejection of the decision of the United States government to present a North American candidate to preside over the Bank, and of the election process itself, which does not give rise to the participation of social organizations and 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”.

On September 12 and 13, the Inter-American Development Bank -BID- will elect a new president who will replace Luis Alberto Moreno, after 15 uninterrupted years of management. The elections will take place through an extraordinary meeting of the Board of Governors to be held virtually. Different countries in the region have nominated candidates, such as Argentina, which nominated Gustavo Béliz, and Costa Rica, Laura Chinchilla. However, what is causing concern in the current IDB presidential selection process is the nomination by the US of candidate Mauricio Claver Carone. This, in addition to going against the unwritten IDB rule that the Institution must be led by a Latin American representative, threatens the decision-making capacity of the Bank’s borrowing countries, given that the United States has the highest percentage of capital and votes within the Institution.

In a context marked by the crisis of multilateralism that the world is going through; the socio-ecological and climatic crisis that has a particularly serious impact on Latin America; the historical problems of inequity, inequality and poverty in the region; and the economic, social and health impacts and repercussions that the Covid-19 pandemic is generating, the transition in the presidency of the IDB is key for the future of the region.

Therefore, today more than ever the IDB requires a qualified leader who is capable of critically positioning himself with regard to the role that the Institution plays in the face of the complex panorama that the region is experiencing, and who is predisposed and capable of promoting a model different development. In this sense, the person appointed to the presidency of the IDB should necessarily meet a series of requirements that include, among others, the following:

  1. A clear and express commitment to multilateralism, at a time when the legitimacy of international institutions is being questioned and attacked;
  2. Extensive experience and knowledge of the reality of the countries of the region and the challenges they face in the current context;
  3. A clear commitment to transparency, accountability and the participation of communities, indigenous peoples and civil society in the actions of the Institution;
  4. Knowledge and experience in development agendas that reflect a commitment to the public interest, the protection and promotion of human rights, gender equality, the need to immediately face the effects of climate change and to bet on a model truly sustainable development focused on communities and indigenous peoples.

At the same time, the statement, to which more than 50 organizations joined, emphasizes that the election must go beyond voting and open spaces for dialogue between candidates and civil society and communities. After 15 uninterrupted years under the leadership of a presidency that impregnated particular characteristics, and in many cases questionable, the management and actions of the Bank, a unique opportunity is presented to learn more about the positions and proposals of the different candidates. facing the concerns and demands of communities and civil society; and in relation to the prevailing context in the region.

We hope that the IDB will rise to the current circumstances and take advantage of this opportunity to ensure that whoever becomes president of the Bank is truly the most qualified and appropriate person to lead it in the face of the complex moment the region is going through.

More information

Contact

Gonzalo Roza, gon.roza@fundeps.org

Through a statement addressed to the Governors of the Inter-American Development Bank, civil society organizations, peasant communities, indigenous peoples and Afro-descendants and people with disabilities in Latin America and the Caribbean, we express our concern regarding the presidential elections of the Institution. In particular, we express our rejection of the decision of the United States government to present a North American candidate to preside over the Bank, and of the election process itself, which does not give rise to the participation of social organizations and communities.