ONE and Bob Geldof React to Closing of World Bank and IMF Spring Meetings

Washington, D.C. —  The IMF and World Bank Spring Meetings concluded today with limited progress and much work to do to protect the poorest countries from the impact of the economic crisis.

The World Bank has been asked to accelerate IDA lending but there has not yet been a decision on an early IDA or African Development Bank replenishment despite Bob Zoellick’s indication that this will be necessary.  This will be discussed at the Annual Meetings in the fall.

“Many of the resources described in today’s communiqué are too expensive for the poorest countries or come with too many strings attached.  But at least the door has been left open in some key areas and there is a commitment to frontload Bank funding to low income countries. Urgent action is now needed from the World Bank to protect the billion poorest people on the planet who had no part in creating the economic crisis but who will be hit the hardest.” said Oliver Buston, European Director of ONE.

ONE is also calling for the IMF to deliver more resources for the poorest countries.  These should not be offered with the wrong economic conditions attached or in a way which leads to a new debt crisis.

“Ministers have asked the IMF to urgently implement a plan to deliver more fiscal stimulus resources for Africa’s economic shock which they like the rest of the world, face. If the IMF can use a small stand alone gold sale as suggested or other means to deliver significant resources without creating a new debt crisis and without old style conditions attached, then something positive will have been achieved for the countries largely ignored at the G20,” said ONE supporter Bob Geldof.

These meetings have confirmed the G20 processes on reforming IMF and World Bank governance.  Plans are being developed on both fronts and these must give African countries strong representation in organizations that have a very large impact on their development prospects.

“Reform of World Bank and IMF governance must be ambitious and ensure better representation for African countries.  It’s time to make it really a world bank not just a G7 bank,” Buston said.