FINDINGS IFIs and governments have failed to disclose “receipts” of COVID19-related financing and activities. Lack of due diligence and oversight on fast-tracked projects put people at risk. It is difficult to know what IFI funds were part of the During the pandemic, many IFIs utilized a rapid COVID-19 response and how they have been utilized at disbursement window, or “fast-tracking”, at the same the national and local level. For the most part, both IFIs time as governments in many countries were waiving and governments have failed to track and communicate environmental impact assessments and regulations as this data accurately, if at all. well as consultation requirements.10 While shortening disbursement timelines for emergency response At a global level, the IMF has pledged 1 trillion to fight can be justified, due diligence, especially regarding the pandemic, and deployed 150 billion USD. The Early human rights impacts, remains essential. Researchers, Warning System COVID-19 DFI Tracker which tracks 15 however, found that socio environmental risk ratings development banks’ disclosed financing, identified 1,511 for projects were often missing or under assessed. 6 projects as of January 2022, totaling 166.70 billion USD, with the European Investment Bank and World Bank topping the list in terms of money allocated.7 Tracking and monitoring is even more difficult because WHILE SHORTENING DISBURSEMENT TIMELINES FOR EMERGENCY RESPONSE CAN BE JUSTIFIED, HUMAN RIGHTS DUE DILIGENCE REMAINS ESSENTIAL. COVID-19-related support from DFIs has included reallocation of existing funds as well as new financing. What Out of 123 projects analyzed in Brazil, only 61 (49.6%) we can see is that IFI support came in the form of project- contained a socioenvironmental risk classification. Without specific loans, general budgetary and balance of payments an accurate risk classification, social and environmental support, grants, policy advice, technical assistance and risks are left unmitigated and information disclosures, capacity development. Of this mix, the majority of funding consultations, and other safeguards are not required.11 came in the form of regular or concessional loans.8 Of the budgetary support provided by the World Bank, for instance, In Bolivia, COVID-19-related loans and technical less than 10% was through grants. assistance projects financed by the Inter-American 9 Development Bank (IDB) were all classified as minimum 6 “The IMF’s response to COVID-19”, International Monetary Fund, https://www.imf.org/en/About/FAQ/imf-response-to-COVID-19#Q1. 7 The Early Warning System Covid DFI Tracker is an interactive map that tracks projects disclosed by 15 development banks as part of their operational response to COVID-19, based on the bank websites and disclosures, including project documents. It includes proposed projects that explicitly contain the terms “COVID” or “coronavirus” in their title, project description, or as a rationale in the project documents. It includes both proposed and active projects that are part of the banks’ COVID-19 relief facilities and response, where the project list has been centralized and disclosed. For methodology see bit.ly/COVID19_Tracker. 8 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 9 Chiara Mariotti, “Development Policy Financing in the World Bank’s COVID-19 response”, Eurodad, September 29, 2021, risk or financial intermediary, including a cash transfer program for vulnerable groups. This is despite the fact that the country was in the midst of not only a pandemic and economic crisis, but a political crisis, raising https://www.eurodad.org/the_policy_lending_doctrine. 10 See e.g. “DFIs financing in Argentina during the pandemic: COVID-19 projects and transparency shortcomings”, Fundación Ambiente y Recursos Naturales, 2021, https://farn.org.ar/wp-content/uploads/2021/11/ DOC_COVID-PROJECTS-V3-1.pdf; “Country Assessment Report COVID-19 recovery loans in India”, Growthwatch India, 2021. 11 “Investments of International Financial Institutions in Brazil in 2020: Was there assistance to combat the COVID-19 pandemic?”, Instituto de Estudos Socioeconômicos, Instituto Maira, and International Accountability Project, https://www.inesc.org.br/en/ investments-of-international-financial-institutions-in-brazil-in-2020/. WHERE DID INTERNATIONAL FINANCIAL INSTITUTIONS’ COVID-19 FUNDING GO? 5