Tag Archive for: IFIs

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The BRICS Bank designed its new president: the Brazilian Marcos Prado Troyjo

In a special meeting, the Board of Governors of the New BRICS Development Bank elected Brazilian Marco Prado Troyjo as the new president of the multilateral institution.

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

The Board of Governors of the New Development Bank -NDB- of the BRICS met in a special way through videoconference to elect the new president of the bank: the Brazilian Marcos Prado Troyjo, who will take office on July 7. Its vice president will be Anil Kishora from India and he will serve as the bank’s chief risk officer. The presidential term is 5 years and the presidents are elected on a rotating basis between the member countries of the BRICS, that is, between Brazil, Russia, India, China and South Africa.

Troyjo was vice-minister of economy in Brazil, served as special secretary for Foreign Trade and International Affairs, and represented the Brazilian Government on the boards of multilateral development institutions. In addition, he chaired the Brazilian External Financing Commission and the National Investment Committee. He was also co-founder and Director of BRICLab at Columbia University, United States, and is a member of the World Future Council on International Trade and Investment of the World Economic Forum (WEF).

Marcos Troyjo will replace the previous president of the KV Kamath Bank of India, who has held the presidency since 2015 and is responsible for the NDB’s response to the COVID-19 pandemic, through the launch of the Emergency Program Loan Product COVID-19. The new president of the NDB will have the challenge of facing the post-pandemic economic consequences, reactivating the infrastructure projects and with it the activity of the multilateral bank. It remains to be seen also what direction the New Development Bank will take, but also the same space of the BRICS after the pandemic, given the loss of influence that the forum has experienced in recent years and the criticism it received, including from from the president of Brazil himself, Jair Bolsonaro.

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Contact

Gonzalo Roza, gon.roza@fundeps.org

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We demand participation and transparency in the change of direction of the MICI

Before the departure of the current Director of the MICI, Victoria Márquez Mees, at the end of June, a group of civil society organizations requested, through a letter sent to the IDB Executive Board, the inclusion of interested parties and the transparency in the selection process of the new Director of the Mechanism.

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

On June 30, the current Director of the MICI, Victoria Márquez Mees, ends her term as head of the IDB accountability mechanism, a post she has held since 2015. In this way, the IDB is beginning the selection process from the new Director, therefore, together with a group of civil society organizations, we sent a letter to the Bank’s Board of Executive Directors requesting the inclusion of civil society and interested parties in said selection process. It should be noted that the last selection process carried out by the Bank was not very transparent and did not include civil society or other external stakeholders.

In line with the above, we recommend that the Bank create opportunities and encourage the participation of civil society and external stakeholders in the selection process. Especially considering that the MICI policy establishes that the Board will convene a selection panel to identify candidates. Furthermore, the inclusion of external stakeholders in the process of selecting the Director of accountability mechanisms is a good practice carried out by various international financial institutions such as the European Bank for Reconstruction and Development, for example.

In line with the process of changing the mechanism’s direction, on June 12, together with a group of civil society organizations, we sent a second letter to the IDB requesting that the External Consultative Group -GCE- of the MICI be part of the process of selection. The participation of the CME will bring greater transparency to the process since the members of the Group are interested parties in the Bank who have knowledge about the region, the operation of the MICI and on issues related to transparency, sustainability and accountability. In addition, the inclusion of CGE members in the selection process means reporting your experience and qualified perspectives on the legitimate topic and the selection process and identifying the best possible candidate.

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Gonzalo Roza, gon.roza@fundeps.org 

Analysis of the Second Plan Joint Action between Argentina and China (2019-2023)

The following document describes and analyzes the Second Joint Action Plan agreed between Argentina and China (2019-2023) at the G20 summit in 2018. This Plan reinforces the comprehensive strategic partnership between both States and details the actions that will be carried out carried out in different areas such as politics, trade, culture, finance, communications, among others.

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Status of the emblematic projects with Chinese financing in Argentina

China’s growing interest in financing infrastructure projects in the region has led Argentina to sign a multiplicity of cooperation agreements with this country. For this reason, we have identified a series of projects with Chinese financing which we believe are relevant for their magnitude and for the economic, social and environmental impacts they can generate. Thus, in this document, the status of the situation, amounts committed and actors involved in the selected projects considered emblematic are detailed (only spanish).

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The World Bank, the IDB and the CAF commit financing for Argentina in the context of the pandemic

In recent weeks, the World Bank approved a project for 35 million dollars and the IDB and CAF have committed amounts of 1,800 and 4,000 million dollars respectively for projects that allow Argentina to face the effects of COVID-19 . These are fast-disbursing loans that, while important to alleviate the economic, social and health consequences of the pandemic, raise a series of doubts regarding the effective fulfillment of the requirements and conditions necessary for their approval.

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

The effect of the pandemic on the world economy can be reflected in the paralysis of international trade and economic activities. Furthermore, the situation of uncertainty has led to the tightening of external financing for the States, which at this moment are essential to face the health emergency, which requires heavy investments in materials and specific medical equipment.

Faced with this scenario, various International Financial Institutions such as the World Bank Group, the Inter-American Development Bank -IDB-, the European Investment Bank -BEI- or the Development Bank of Latin America -CAF-, among others, have put Quick disbursement financing available to countries for projects to cope with the effects of the pandemic. On April 2, the World Bank -BM- approved an emergency loan of $ 35 million for Argentina, with the aim of strengthening the health system by purchasing equipment and medical supplies to minimize the impact of the coronavirus on the country. This financing is part of the $ 14 billion fund that the World Bank created to provide assistance to countries that must face the consequences on their health and economic systems due to the outbreak.

Fuente: Página 12

In addition, the World Bank promised to cooperate with the Argentine Republic in the implementation of the Emergency Project for the Prevention and Management of the Disease by COVID-19. The purpose of the same is to strengthen the preparation and response against the pandemic and the adaptation of the country’s national public health systems. The execution of the emergency project will be in two stages: the first consists of the emergency response efforts of COVID-19, which consists of two sub-stages: on the one hand, detection, confirmation, follow-up of contacts, registration and reporting of cases and on the other, the strengthening of health systems. The second stage is the implementation, monitoring and evaluation of the project.

Likewise, on May 7, the Inter-American Development Bank (IDB) announced a loan of 1.8 billion dollars for the country to alleviate the economic, social and health consequences of the COVID-19 crisis. It is the largest amount disbursed by the IDB to Argentina in the last 10 years. The support provided by the IDB is linked to care for the health system, transfer to the social protection network for the most vulnerable, and economic and employment recovery, mainly from micro, small and medium-sized enterprises (MSMEs).

Fuente: Infobae

The programs of the public area of ​​the IDB Group linked to Argentina with the objective of responding to the emergency of COVID-19 and that will be approved this 2020 is 1,000 million dollars, while the other 600 million dollars correspond to current projects.

In an official statement, the Presidency explained that the first of the projects will allocate $ 470 million for a public health program to support the response to the coronavirus, of which 300 million were disbursed this year. The objective is to ensure access to the health system for 17 million people. Similarly, with the intention of supporting the productive sector and promoting job creation, 500 million dollars will be allocated, for which 300 million were disbursed this year. It is estimated that the amount will go to the aid of 30 thousand micros, small and medium-sized companies.

In addition, 600 million will be allocated with the goal of serving the most vulnerable population through a social protection program created in conjunction with the IDB. Of this total, 400 million will be disbursed this year with the purpose of transferring resources and subsidies to vulnerable sectors. It will support around 3 million companies.

For its part, the Development Bank of Latin America (CAF) has stated that in the current context, each State must adopt economic measures that respond to the situation of each country, without neglecting the productive sector and the most vulnerable social sectors. To contribute to these spaces, CAF has deployed an emergency loan package for each country of up to $ 50 billion to serve public health systems; We also allocate emergency disbursements of 2.5 billion dollars per country to SMEs that involve different aspects of the financial portfolio. In addition, non-reimbursable cooperation resources have been made available to donate essential supplies to the health sector.

The Argentine president held talks with the CAF executive (Luis Carranza Ugarte) exchanging concerns and initiatives to respond to the crisis. The institution committed to the Argentine Government to carry out the execution of technical cooperation projects for more than 4,000 million dollars within the next four years aimed at economic reactivation and social aid at different government levels. For the current year, specific financing will be allocated to strengthen the emergency in the provinces ($ 40 million), promote social policies ($ 30 million), develop investments in infrastructure, including educational establishments, repair and construction of routes. , and sanitation (USD 900 million dollars).

In this way, it can be seen that the Financial Institutions have made fast-disbursing funds available to the national government to be able to deal with the effects of the pandemic in an executive manner. And Argentina is not the only case, since more than 130 projects have been approved in countries in Latin America, Europe, Asia and Africa for a total amount greater than 25 billion dollars, according to a mapping of projects carried out by the Early Warning System.

While recognizing the need for countries to quickly have resources to face the economic and social effects of the pandemic, it should be noted that most of these projects are being prepared, discussed and approved in an accelerated manner, in a few weeks, when they are generally processes that take several months since they must go through a series of instances and meet a series of requirements for their approval and start-up. Requirements that not only contemplate economic-financial issues, but also in terms of transparency, public participation, accountability, due diligence and social and environmental sustainability of projects. Therefore, it is questionable whether such requirements are effectively being contemplated and applied in these fast disbursement projects by the Financial Institutions and governments involved.

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Authors

  • Ailín Toso
  • Mariano Camoletto

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Joint presentation: Document with Recommendations and comments on the draft of the Social and Environmental Policy Framework (MPAS) proposed by the IDB

On the occasion of the process of modernizing the environmental and social policies of the Inter-American Development Bank, more than 50 civil society organizations in the region made a document with recommendations and comments on the draft of the new IDB Environmental and Social Policy Framework to avoid corrosion of social and environmental standards. The following document sent to the IDB is in Spanish and English.

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

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

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

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

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

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

The 10 Performance Standards are as follows:

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

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

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

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

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

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

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

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

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

From Fundeps, together with the participation of some international civil society organizations, we sent the IDB a document with comments and observations on the Environmental and Social Policy Framework from a gender perspective.

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

In December 2019, the Inter-American Development Bank -IDB- published the draft of the Environmental and Social Policy Framework (MPAS) in order to modernize its environmental and social policies. What does this MPAS mean? These are the requirements in environmental and social policy that the Bank or the Bank’s borrowers must meet when carrying out a project. In this statement, the Bank maintains a commitment to environmental and social sustainability, translated into a series of requirements and recommendations ordered in ten Performance Standards to be met in each project.

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

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

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

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

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

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Comments and observations on the draft IDB Environmental and Social Policy Framework from a gender perspective

This document makes comments and observations on the draft of the IDB’s new Environmental and Social Policy Framework from a gender perspective. The comments and suggestions have been made with the aim of strengthening the Bank’s commitment to the gender perspective and its internal incorporation into its organizational structure. It also seeks to avoid the continued violation and corrosion of the rights of women and LGBTTTQ + people.

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

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

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

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

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

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

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

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

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

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

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

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

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Analysis of the BRICS New Development Bank

This working document addresses one of the new multilateral development banks: the New Development Bank (NDB) of the BRICS. It develops its beginnings, structure, policies and strategies, the projects it has underway and the role that China has in the Bank.

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Public consultations begin on the new IDB environmental and social policy

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

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

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

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

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

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

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

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

Why is it important to participate?

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

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

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

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

Sofia Brocanelli

Gonzalo Roza

Contact

Gonzalo Roza, gon.roza@fundeps.org