INTRODUCTION
In 2020, as COVID-19 began to ravage countries around the
been only a fraction of what is needed.3 Importantly,
world, governments found themselves facing a public health
case studies show a gross lack of transparency in terms
emergency and a socioeconomic crisis of unparalleled
of where IFI support went during the pandemic, and
measure. Many governments turned to International
lack of participation in making these critical decisions
Financial Institutions (IFIs) like the World Bank, Asian
at national and local levels. This lack of transparency
Development Bank (ADB), Inter-American Development
and participation undermined the effectiveness of many
Bank (IDB) and International Monetary Fund (IMF) to
response programs, with critical funds and services
secure financing and technical support to weather the
failing to reach their intended beneficiaries or being
storm. IFIs and economic experts urged countries to spend
funneled off in corruption and malfeasance.4 In many
and borrow, and they did. At the same time, civil society
cases, IFI financing came attached with policy reform
groups raised concerns about IFIs’ role in the pandemic
conditionalities that subverted democratic processes
response, the risk of corruption and mounting debt, and
and placed groups already vulnerable to the pandemic
issued calls for a human rights-based approach.2
at greater risk. Many are asking now, how will their
governments pay for these new debt obligations, what
Today, communities and civil society groups find
social programs will be cut in exchange, and is there a
themselves left in the dark regarding how much their
better way to weather future crises?
governments have secured from IFIs, under what
conditions, how these funds were utilized, whether
Today, as countries begin to grapple with the long term
they had the desired impact on public health and social
effects of the pandemic, with millions more individuals
welfare, and what these agreements portend for the
living in poverty, even more entrenched inequality, a
ability of countries to recover from the ongoing crisis and
mounting economic and debt crisis, and new waves
guarantee human rights.
of COVID-19 continuing to make the news, many are
looking to IFIs to play a super-sized role in the recovery.5
TODAY, COMMUNITIES AND CIVIL SOCIETY GROUPS
FIND THEMSELVES LEFT IN THE DARK REGARDING
HOW MUCH THEIR GOVERNMENTS HAVE SECURED
FROM IFIS, UNDER WHAT CONDITIONS, AND HOW
What we can see from studies of specific projects and
country experiences, however, raises serious concerns
and important questions as to whether, and under what
conditions, IFI financing is an appropriate solution for the
ongoing crisis and for possible future global emergencies.
THESE FUNDS WERE UTILIZED.
To address this gap, civil society groups and researchers
around the world are investigating the role of IFIs in
their nation’s COVID-19 response and its impacts. These
3 “Towards a People’s Recovery: Tracking Fiscal and Social
Protection Responses to COVID-19 in the Global South”, Financial
Transparency Coalition, April 2021, https://financialtransparency.org/
wp-content/uploads/2021/04/FTC-Tracker-Report-FINAL.pdf.
However, the support from IFIs for social protection has
4 See e.g. Palacios, D, “Estudio de consultoría realizado por
encargo del CEDLA para realizar un análisis sobre los préstamos del
BID en la Región: caso Bolivia referidos al COVID-19”, CEDLA, May 14,
2021; “We are all vulnerable here: Kenya’s Pandemic Cash Transfer
Program Riddled With Irregularities”, Human Rights Watch, 2021,
https://www.hrw.org/report/2021/07/20/we-are-all-vulnerable-here/
kenyas-pandemic-cash-transfer-program-riddled#.
2 See e.g. “IMF faces wave of calls to suspend loan disbursements
in Africa”, Bretton Woods Observer, July 13, 2021, https://www.
brettonwoodsproject.org/2021/07/imf-faces-wave-of-calls-to-suspendloan-disbursements-in-africa/; “Statement to Development Finance
Institutions regarding Covid-19 response”, Coalition for Human Rights
in Development, May 18, 2020, https://rightsindevelopment.org/news/
development-finance-covid19-human-rights
5 See e.g. Report of the Independent Expert on the effects of
foreign debt and other related international financial obligations
of States on the full enjoyment of all human rights, particularly
economic, social and cultural rights, Yuefen Li “International debt
architecture reform and human rights” https://undocs.org/A/76/167;
and Richard Samans, “Financing Human-Centred COVID-19 Recovery
and Decisive Climate Action Worldwide: International Cooperation’s
21st Century Moment of Truth” International Labor Organization
Working Paper 40, 7 October 2021, https://www.ilo.org/global/
publications/working-papers/WCMS_821931/lang--en/index.htm.
studies paint a complicated if not troubling picture.
Many countries welcomed the additional financing
for critical medical equipment and economic support.
WHERE DID INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 FUNDING GO?
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