In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain how to request information from these institutions and how to make complaints when their projects affect the rights of communities.
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In recent years, Argentina joined two initiatives promoted by China of great potential and relevance: the Asian Infrastructure Investment Bank and the Belt and Road Initiative. In this document we explain what they are and why we are interested in knowing them.
Much of what happens in Argentine foreign policy is linked to China, hand in hand with its growing global influence, which is why it is important to know initiatives such as the Asian Infrastructure Investment Bank and the Belt and Road Initiative. , in which China is its main promoter. At Fundeps we share documents with basic and accessible information about these initiatives, placing emphasis on practical resources to access information and their accountability mechanisms.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
The Belt and Road Initiative (BRI) represents China’s flagship global connectivity and infrastructure development program that aims to boost trade and new political and economic ties with participating nations, primarily emerging and “developing” countries. ”. For its part, the Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank created in 2015 at the initiative of China that currently has more than 100 member countries around the world and finances projects in other regions, such as Latin America and the Caribbean or Africa.
The AIIB is closely linked to the Belt and Road Initiative not only because the processes of formation of these two instruments were promoted by Chinese President Xi Jinping and occurred simultaneously, but also because the AIIB constitutes the main tool financing for projects that are part of the IFR. Likewise, both are part of a process of geopolitical reconfiguration where the center of gravity of the world economy turns towards the Asia Pacific. Furthermore, both have been the subject of criticism since their inception in relation to the negative environmental and social impacts that their projects have generated and the lack of transparency, accountability and citizen participation in their design and implementation.
The role that the AIIB and the IFR play – and will play in the medium-short term – in Argentina is much closer and more tangible than we believe: although they seem like initiatives or actors that are distant and unrelated to the local reality, through Their actions promote or facilitate the implementation of large infrastructure and energy projects in the country that, in turn, have – or may have – a direct or indirect impact on people’s daily lives and may affect social and/or environmental rights. , especially from the populations and communities linked to the projects. In fact, there is already a first approved project in Tierra del Fuego that will be financed by the AIIB for an amount of 65 million dollars and, within the framework of the IFR, there are various projects committed in our country. For this reason, it is essential to monitor them, know how to access information about the projects and how to file a complaint with the Bank’s accountability mechanism.
In addition to this and given the frequent lack of transparency of Chinese banking and the general lack of knowledge about it, at Fundeps we share these updated brochures with summarized information about the AIIB and the Belt and Road Initiative. We also added instructions on how to make a complaint to the Project Affected Persons Mechanism (PPM), the AIIB’s accountability mechanism.
How does the situation influence?
During the current government of Javier Milei, diplomatic ties between both countries have been strained due to the reconfiguration of the new administration’s foreign policy, with greater geopolitical alignment with the United States and the West. We can also mention certain measures such as the decision of the Argentine government to visit the Chinese space base in Neuquén or renounce Argentina’s membership in the BRICS bloc, the brake on infrastructure works with Chinese financing or even statements by the President himself or of Foreign Minister Diana Mondino. This has been reflected, among other things, in the difficulties in the negotiations to renew the swap with China – currency exchange between the central banks of both countries – or in the weakening of the commercial link, which has moved China to fourth place. place as Argentina’s trading partner, currently positioning itself behind Brazil, the European Union (EU) and the United States.
However, it is worth highlighting that the link between Argentina and China continues to be very important, and will continue to be so in the future, regardless of the government in power.
A bilateral relationship of a strategic nature
The bilateral relationship between the People’s Republic of China and Argentina has been strengthening in recent decades and has acquired greater relevance since the 2000s, becoming established, almost 10 years ago, as a Comprehensive Strategic Association. It includes an expansion in the areas of cooperation and covers not only economic and financial aspects but also political, commercial, technological, cultural, health and investment matters. This strengthening of ties was reflected in the incorporation of Argentina to the two initiatives mentioned here.
The signing of a Joint Declaration in 2004 and the Comprehensive Strategic Association in 2014 have been, at the diplomatic level, two unavoidable antecedents to understand Argentina’s entry into the IFR and the AIIB. Given the continuity and long-term projection of the Sino-Argentine link, it can be said that Argentina’s entry into the IFR (in 2022) and the AIIB (from 2021, as a non-regional member), are consistent with the rapprochement and consolidation of bilateral relations since their normalization in 1972 and crystallize this long-standing bond between both countries, posing both opportunities and challenges for our country.
- Document: The Asian Infrastructure Investment Bank and the Belt and Road Initiative: what are they and why do they matter in Argentina?
- Document: How to access information and make a complaint at the Asian Infrastructure Investment Bank and the Belt and Road Initiative?
- Infographic on the Asian Infrastructure Investment Bank.
- Infographic on the Belt and Road Initiative (or “New Silk Road”).
Contact
Gonzalo Roza, gon.roza@fundeps.org
Infographic with basic and simple information about the Belt and Road Initiative (or “New Silk Road”).
Infographic with basic and simple information about the Asian Infrastructure Investment Bank.
Representatives of civil society meet with the president of the IDB to address challenges for sustainable and inclusive development in Latin America. At the meeting, recommendations were presented to the bank to strengthen the promotion of sustainable development in the region.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
25 civil society organizations from Latin America that are part of the IDB Working Group, among them Fundeps, met on Friday, November 10, with the president of the Inter-American Development Bank (IDB) Ilan Goldfajn, with the purpose of strengthening dialogue and identify opportunities to bring the institution closer to the populations of the region it tries to serve.
The representatives of civil society presented to President Goldfajn recommendations to strengthen the link with civil society and communities impacted by IDB projects and recommendations to consider in the IDB’s 2023-2030 Institutional Strategy, which is in the process of being prepared. President Goldfajn then opened the floor to listen to specific topics of interest from different member organizations of the group.
The IDB Working Group described the meeting as a positive sign from the bank’s new administration, in the sense of an openness and willingness to strengthen dialogue with civil society. The meeting with President Goldfajn follows a previous meeting that took place during the 2023 IDB Annual Meeting held in March in Panama, and a meeting with the IDB Country Vice President, Anabel González, during the Common Finance Summit that took place in last September in Cartagena de Indias, Colombia.
“These spaces for dialogue represent a sign of the bank’s rapprochement with civil society”, said Carolina Juaneda, from the Bank Information Center, coordinator of the Working Group on the IDB. According to Ivahanna Larrosa, regional coordinator of the Coalition for Human Rights in Development, “the general perception is that it was a good meeting to present our messages and move forward in improving the bank’s dialogue with civil society.”
Civil society representatives pointed out that the IDB Group’s 2023-2030 Institutional Strategy must promote a fair, community-based energy transition that puts people and the environment at the center. Other recommendations of the Working Group were that the bank: comply with the highest environmental and social standards and respect for human rights in its activities and the projects it finances, prioritizing and strengthening the implementation of the Environmental and Social Policy Framework (MPAS), and improving upstream planning to identify suitable projects; prioritizing quality investments, redoubling the principles of good governance, especially transparency, access to information, participation and accountability; strengthen your commitment to the impacted communities, guaranteeing comprehensive reparation to people; ensure a responsible exit from unsustainable projects and operationalize the commitment not to tolerate retaliation.
Civil society organizations seek substantive participation in the IDB Group Annual Meetings that will be held in March 2024 in the Dominican Republic. The opening of President Goldfajn and his team to work towards greater interaction of organizations and communities in the region, with the Bank’s administration and teams, is celebrated.
About the IDB Working Group
The IDB Working Group is a group of more than 60 civil society organizations, both from the region and internationally, that influence the IDB Group, promoting the highest environmental, social and human rights standards. supporting communities adversely impacted by projects financed by the bank. Some of its members have been working for three decades to strengthen the IDB’s processes of participation, transparency, access to information and respect for human rights.
More Information
- Inter-American Development Bank: public consultation for its new Institutional Strategy
- Open letter from civil society organizations to IDB President Ilan Goldfajn
Contact
Gonzalo Roza, gon.roza@fundeps.org
From September 25 to 26, in Sharm El Sheikh, Egypt, the eighth Annual Assembly of the Asian Infrastructure Investment Bank (AIIB) was held, an event that brings together its members, business representatives and civil organizations to discuss the direction strategy and initiatives of the organization. At this meeting, the AIIB announced the approval of the first loan in Argentina, intended to finance a wind farm in Tierra del Fuego.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
The main objective of the Annual Assembly is to share the Bank’s progress and receive suggestions regarding its strategic direction and operations. It also provides information and encourages exchanges on policies and projects financed by the AIIB in terms of social and environmental impact.
The central theme of the 8th Assembly was “sustainable growth in a challenging world” and highlighted the importance of addressing the global climate agenda and supporting key infrastructure demands for AIIB member countries. The meeting program covered a variety of Thematic topics that include the latest trends and priorities of the Bank. The public sessions were grouped into three thematic streams: sustainability, connectivity and multilateral cooperation. They addressed issues related to the development and implementation of sustainable environmental infrastructure, as well as the promotion and strengthening alliances that improve infrastructure connectivity both in Asia and in other regions.
First AIIB project in Argentina
A particularly relevant event for Argentina was the announcement, during the event, of the approval of the project called “Energy transition of the province of Tierra del Fuego” for an amount of 65 million dollars. This project marks a milestone, as it represents the first financing granted to Argentina as a member of the Bank, which it officially joined in March 2021. The funds will be used for the construction of a wind farm near the city of Río Grande. . According to the AIIB, the main objective of the project is to establish the wind energy generation capacity in the province of Tierra del Fuego and it “is aligned with the objectives of the Paris Agreement and the Nationally Determined Contributions of Argentina, for which will help reduce greenhouse gas emissions and increase the adoption of renewable energy.” This initiative arises from the need to take advantage of the wind resources that the province has and the lack of interconnection in local networks for the materialization of projects of such magnitude.
However, it is important to highlight that given the scarcity of information about the project, it is essential to analyze in depth how the project will be carried out, and what the true implications could be in terms of socio-environmental impacts. For this reason, at Fundeps we are monitoring this project and have made a request for information to the AIIB about details that are not yet clear. For example, although an Environmental and Social Management Plan (PMAS) and a Stakeholder Participation Plan (PPPI) have been published on the Bank’s website, the documentation related to the Environmental Impact Assessment is not yet available. and Social, the Environmental and Social Due Diligence Report or information related to the public hearings planned for the project, among other relevant documentation.
This information is key to identifying the real impacts of the project and verifying whether access to information about the project and the participation of the local population is effectively ensured. In turn, another aspect that raises doubts is the role that the CAF (current Development Bank of Latin America) will have in relation to the project, since it has been presented as a co-financed project between both multilateral institutions.
Author
Candela Jauregui
Contact
Gonzalo Roza, gon.roza@fundeps.org
Last week, the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB) took place in Morocco. Likewise, a counter-summit was organized that gave space to civil society and social movements to discuss the neoliberal policies promoted by these institutions. Below are some reflections on these events, their limitations and potential, and the particular situation of Argentina.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
The Annual Meetings, which this year took place between October 9 and 13 in the city of Marrakech, are spaces where panels are organized with IMF directors and staff, while civil society has its own forums and exhibition spaces and discussion. At the same time, countless closed meetings occur in parallel to the entire official agenda. All of this aims to be able to discuss how the international financial architecture is organized, which determines under what conditions funds are lent mainly to countries in the global south. The role of civil society in these spaces is to bring their concerns and represent the voices of the people affected by this complex lending infrastructure.
For example, the Coalition for Human Rights in Development presented a report where of 38 projects evaluated, in 36 reprisals were identified against people who defended rights and complained against said loans. This shows that, although the International Financial Institutions (IFIs) make high-level proclamations regarding the importance of human rights, there are no measures or real addressing of the negative consequences on defenders who suffer abuse by security forces. security and the police, judicial persecution, the disproportionate use of force, surveillance, and gender violence and sexual harassment in the particular case of defenders.
Likewise, the Environment and Natural Resources Foundation (FARN) presented in a panel on the IMF’s climate strategy regarding the Argentine case. It was made visible how the need for foreign exchange from exports is pushing the fossil fuel extractivist model and going against the country’s climate change mitigation goals. The emblematic example is Vaca Muerta, which if fully exploited would use the equivalent of 11.4% of the CO2 budget. In this case, we can see how the short-term foreign trade balance needs override any analysis of environmental impacts and put the environmental sustainability of the planet at risk.
Faced with this, in general the authorities and staff of the IFIs present on the panels insist that existing policies are the ones that work, they dismiss the proposals of civil society with their own data and are not very receptive to any criticism. For this reason, spaces like the Counter Summit appear, where the conversation flows in a more critical and sincere way about what is happening with the impacts of loans and projects, allowing a space to unite voices in order to change injustices. that today affect so many countries and communities.
The Counter Summit opened on October 12 with a march, and over the next two days there were both small group and plenary discussion sessions. Finally, on Sunday the 15th, the plenary session closed with a reading of the conclusions, which included the cancellation of illegitimate debts, policies that respect planetary limits, climate and social justice, and promote food sovereignty. Also, let end financial colonialism, that there be financing for projects that allow adaptation to climate change, social security and universal health coverage, and a special proclamation for the rights of women who are those who are most negatively impacted by austerity policies.
Argentina and its link with the IMF
According to Noemí Brenta, Argentina has a very particular relationship with the IMF, since it is the middle-income country that has been under its agreements the longest, directing economic and fiscal policies. Today, not only does it have almost 30% of the IMF’s loan portfolio, but it is a good student: throughout all these years and of 22 agreements, only 5 were suspended by the organization. Therefore, it can be stated that the guidelines recommended by this organization have had great influence on the decisions of the different governments.
However, compliance with the policies has implied a notable deterioration in people’s quality of life. On the one hand, the conditionalities impose that the income that the country has be used to pay creditors (that is, to the IMF and other debtors as well), which in turn implies that social expenses are cut and there is no investment for the country. development. On the other hand, the extractivist model is deepened through the agro-industrial production of commodities, the exploitation of fossil fuels and mining – lithium mining is very popular today due to its potential to contribute to an energy transition towards other renewable sources. This has negative consequences on the environment, does not take into account the impacts on the use of scarce and non-renewable resources such as water, and limits the development of the communities that live in the exploited territories.
Mariano Féliz suggests that the impacts on the paid labor market have clear gender biases, since it is women who have to face intensified unpaid and reproductive tasks, while receiving fewer public services. IMF policies that promote women’s participation in economic activity do so from an instrumental perspective because it improves macroeconomic indicators and provides labor that usually accepts worse working conditions. However, while the employment rate for adult women increased, the employment rate for men, especially young people, decreased. All of this only results in the capitalist tendency to overload women with care tasks for their own homes and communities, for example, through the organization of popular soup kitchens.
For the logic of financing agreements and governments, human rights are an ideal that is difficult to fulfill rather than an obligation. The panorama then in Argentina makes us have to think about how to build a political movement against unsustainable and illegitimate debts, against abusive conditionalities that are detrimental to fundamental rights and people’s lives. It also forces us to reflect on how these Levels of indebtedness and precarious lives are linked to the growth of far-right electoral options, which ultimately also promote anti-democratic discourses and practices.
The challenges are many, they are complex and involve a lot of political articulation. However, the context is urgent, since there is no sustainability of life possible under the policies of austerity, impoverishment and extractivism. We have to continue building collective narratives, mobilizing and supporting communities by defending their territories.
Contact
Carolina Tamagnini, carotamagnini@fundeps.org
On August 22-24, the 15th BRICS Summit took place in South Africa, where heads of state of the member countries (Brazil, Russia, India, China and South Africa, whose acronym is the acronym) met at a high-level forum to discuss key issues for the most prominent emerging economies.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
During the XV Summit, the Heads of State met with members of the business sector in dialogue with the New Development Bank to outline the main axes that will guide BRICS policy. This year’s agenda included the potential “de-dollarization” of global trade, with China and the yuan at the forefront of this ambition, as well as the possible effects of the Russian-Ukrainian war on cooperation between member countries. However, the emphasis was on the expansion of BRICS to include the countries that have submitted official applications for membership: Argentina, Iran, Saudi Arabia, Ethiopia, the United Arab Emirates and Egypt.
Finally, during the summit, Argentina, as well as the rest of the countries mentioned above, was formally invited to join the BRICS as from January 1, 2024. Since it is an international forum that does not imply a supranational integration process, the decision to join will be at the discretion of the Executive Power that takes office on December 10. Some of the presidential candidates, such as Javier Miliei (La Libertad Avanza) and Patricia Bullrich (Juntos por el Cambio) have expressed critical positions regarding the accession, alleging a strong difference with the international actions of the BRICS countries, especially in reference to their violations of international law, such as during the war in Ukraine.
In this sense, it is possible to identify some key elements regarding the implications of Argentina’s participation in the BRICS. Mainly, reference is made to the quantitative dimension of the BRICS group, which concentrates 40% of the world’s population and 25% of the world’s GDP, a percentage that, together, equals that of the United States (World Bank Data Center). In addition to these numbers, there are those that link Argentina specifically with the founding countries: the main recipients of Argentine exports include Brazil, China and India; while its main imports come from China and Brazil (OEC).
The role of the New Development Bank
The economic factor becomes more relevant if the possibilities of financing by the New Development Bank (NDB) are taken into account. The BRICS development bank was founded by the member nations of the bloc in 2014, during the sixth summit held in Fortaleza, Brazil. This international bank is positioned as an alternative to the IMF and the World Bank, with credits oriented mainly to infrastructure projects and which, according to the official website, prioritize “high-impact operations that are environmentally smart, resilient, technologically integrated and socially inclusive”.
Currently, the New Development Bank finances projects in only 6 countries (China, India, Brazil, Russia, South Africa and Bangladesh) for a total of US$ 32.8 billion. According to sources such as Ámbito Financiero, Argentina is already negotiating with Dilma Rousseff, who holds the presidency, a possible credit line that would help alleviate the pressure on the debts with the IMF. In order to join the NBD, Argentina must make a capital contribution of “US$250 million in sovereign bonds held by the Treasury, from the Guarantee and Sustainability Fund (FGS) of the National Social Security Administration (Anses) and other sources” (La Nación). A key element of participation in the NBD is that in their general strategy they commit to grant 30% of their loans in local currency of the recipient country, in order to mitigate the risk of foreign investment (NBD). In the case of Argentina, this could diversify the sources of financing and reduce dependence on the dollar and the IMF. However, there are still concerns about the bank’s transparency and the possibility of access to public consultations or information on the investment process (Diálogo Chino).
Since its creation, BRICS has positioned itself as an alternative multilateral cooperation forum for emerging economies, which emphasizes multipolarity and a “de-ideologized” positioning, prioritizing informal dialogue and trade exchange. In this sense, Argentina’s entry into the forum presents a space for rapprochement with the large economies of the world that are disputing an alternative model of financing for development.
More information
- Visualizing the BRICS Expansion in 4 Charts – Marcus Lu (2023)
- Is Argentina getting closer to the BRICS? – Fundeps (2020)
- Analysis of the New BRICS Development Bank – Fundeps (2020)
- Council of the Americas: Patricia Bullrich and Javier Milei promised to break with the BRICS : After Argentina joins the economic bloc – Página 12 (2023)
- New Multilateral Development Banks | Fundeps
- Is it convenient for Argentina to join the Brics? – LA NACION – Federico Merke and Oliver Stuenkel (2023)
- How the New Development Bank that the Government is excited about works – LA NACION – Paula Urien (2023)
- New Development Bank – New Development Bank Official Site
- Argentina (ARG) Exports, Imports, and Trade Partners | OEC – The Observatory of Economic Complexity – OEC
- New perspectives on the new BRICS bank – Chinese Dialogue (2023)
Author
Lourdes Álvarez Romagnoli
Contact
Gonzalo Roza – gon.roza@fundeps.org
*Source of the image: El Cronista
“Demystifying Development Finance” offers insightful insight into Public Development Banks (PDBs) and their profound impact on the world. From the money they invest to the rules they set, these banks influence our lives and the well-being of the planet in ways we often underestimate.
In recent years, the PDBs have advocated playing an even greater role in addressing climate change, global poverty, and other crises. However, the case studies and evidence presented in this report show that BPDs are actually exacerbating problems they claim to solve. The push towards privatization, the extractivist and top-down approach, and the limitations of social and environmental safeguards often deepen inequalities, lead to human rights violations, fuel climate change and increase debt.
Produced by more than 100 civil society activists, this joint analysis aims to open a much-needed discussion about the role development banks play in today’s global economy and what we can do to hold them accountable.
On June 27, the IDB Group (Inter-American Development Bank, IDB Invest, and IDB Lab) announced the opening of the public consultation process for the preparation of its new Institutional Strategy. The process will be carried out through collaborations and face-to-face and virtual consultations with interested parties, including civil society.
“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.
In accordance with the mandate to review and prepare the Institutional Strategy every four years, the IDB Group announced a new opening of the public consultation process. The IDB Group is one of the main sources of financing for development in Latin America and the Caribbean and is made up of the Inter-American Development Bank (IDB); IDB Invest, which works with the private sector; and IDB Lab, which focuses on developing innovative ways to drive inclusive growth.
The main objective of the consultation is to receive opinions and inputs from interested parties, among which are representatives of governments, the private sector and civil society for the development of a new Institutional Strategy. The process begins after the agreement of the main guidelines established by the Executive Boards of both the IDB and IDB Invest. Once established, the procedure is divided into two phases: the first phase consists of consultations with representatives of the government, private sector, and civil society, either virtually or in person, in the 26 borrowing member countries. In turn, it also includes the possibility that any interested party can contribute inputs through an online form that is available until August 15, 2023. The second phase begins after the approval of the new Strategy by the the Board of Governors, in March 2024, in which those who participated in the public consultation will be informed about the inputs received and will be shared with them the new Institutional Strategy of the IDB Group that will be valid until 2030.
In Argentina there are three dates established for public consultations: with civil society (08/04/23), with the private sector (08/10/23) and with the government (08/16/23). To access the dates of public consultations in the other countries, consult here. For comments or more information, you can contact the following email: consultaspublicas@iadb.org
From Fundeps we consider the opening of this process as an opportunity to strengthen the Bank’s dialogue with civil society. This is why we will participate in the process in the month of August by sending contributions to strengthen the next institutional strategy.
More Information
- Current institutional strategy of the IDB Group (2019 – Second update) – IDB
- Portal for Public Consultation Processes of the Inter-American Development Bank
- Consultation Plan of the Institutional Strategy of the IDB Group
Author
Candela Jauregui
Contact
Gonzalo Roza, gon.roza@fundeps.org
This article aims to analyze the consequences of Argentina’s entry into the Asian Infrastructure Investment Bank. The structure of the Bank is analyzed, covering its characteristics and the performance of the institution in general terms, the repercussions of Argentina’s entry are considered, contemplating advantages and disadvantages and, finally, the effects associated with joining this institution are considered. to China’s projection on the international stage.