MP calls for greater oversight of World Bank and International Monetary Fund

24/08/2004

Mike Hancock, MP (Lib Dem – Portsmouth South) is backing a petition of Parliamentarians world-wide calling for the democratic oversight of the policies of the International Monetary Fund (IMF) and the World Bank. These institutions have a key role to play in reducing poverty in developing countries, yet their meetings are often secretive and there is little involvement from national parliaments. For example while the British Government reveals overall votes by the IMF Board of Governors, it does not provide the votes of or statements made by the UK Government representatives at these meetings. And while the Treasury provides an annual review on the UK and the IMF, it does not provide a similar review on the World Bank.

The petition will be launched in the UK on 8th September 2004 in the House of Commons by the All-Party Group on Heavily Indebted Poor Countries (APHIPC) and it is backed by leading charities and non-governmental organisations such as Christian Aid, Action Aid and the Jubilee Debt Campaign. The organisers aim to get at least 60 MPs in 60 countries to sign the petition in this the 60th anniversary year of the creation of the IMF and the World Bank

Mike Hancock said: “It’s important the British Parliament are able to better hold our Government accountable for what it does in the World Bank and the IMF as we try and tackle poverty in developing countries. We are also preaching to developing countries the need for greater democracy. The World Bank and the IMF have themselves acknowledged the lack of effective involvement of national parliaments in the drawing up of their policies. So bringing greater democratic accountability to the World Bank and IMF would be away of showing that we practise what we preach. And getting greater democratic involvement from developing countries, would also, I believe, improve the effectiveness of the World Bank’s policies in these countries.”

The International Parliamentarians’ Petition for Democratic Oversight of IMF and World Bank Policies states: “We the undersigned Parliamentarians; Noting this is the 60th anniversary year of the creation of the International Monetary Fund (IMF) and World Bank – the Bretton Woods Institutions (BWIs). Recognising that the IMF and World Bank have voiced a commitment to ensuring individual countries determine their own economic policies. Noting that key economic policies continue to be imposed by both the World Bank and IMF as conditions for receiving debt relief and new loans, with the Boards of the BWIs retaining the power of veto over all measures including those in Poverty Reduction Strategy Papers. We therefore call on the BWIs and their principal shareholders to ensure that the democratically elected representatives of recipient nations are the final arbiters of all economic policies in their countries. It is vital that national parliaments in recipient nations have the right and obligation to be fully involved in the development and scrutiny of all measures associated with BWI activities within their borders, and hold the final power of ratification. Ensuring the primacy of sovereign national parliaments in this way will improve implementation of measures to reduce poverty, enhance good governance, and foster democracy.

The petition is backed in this country by the World Development Movement, the Bretton Woods Project, Christian Aid, Action Aid and the Jubilee Debt Campaign. More details can be found on the World Development Movement website at www.wmd.org.uk