The UK's role in the WB and IMF: Department for International Development and HM TreasuryThe UK's policy lines on World Bank and IMF issues are formally decided by the Department for International Development (DFID) and the Treasury. Within DFID, the 'International Financial Institutions' department (IFID) and the 'Global Funds and Development Finance Institutions' department (GFDD) lead in devising the organisation's position on these institutions (see below). In the Treasury, the 'International Finance' department is responsible for preparing advice on the policy issues and specific country programmes brought before the Board of Directors in Washington. The top UK representatives at the IMF and World Bank are the Chancellor of the Exchequer, Alistair Darling, and Secretary of State for international development, Douglas Alexander. They are known as UK governors to the Fund and Bank, sitting on the ministerial committees which meet in Washington twice a year to decide on overall strategic direction for the institutions. The UK is the fourth-largest shareholder in both the World Bank and the IMF, holding 4.3 percent and 4.8 percent of votes, respectively. For comparison the US is by far the largest shareholder with 16.4 percent and 16.85 precent vote shares, respectively. Following completion of the latest round of funding for the World Bank's International Development Association (IDA), the UK will be the single largest donor to the World Bank. The executive directors and the UK delegation to the Bank and FundOn a day-to-day basis the governors delegate power to executive directors (ED), civil servants seconded to Washington for two or three years who serve on the boards of both the Bank and Fund. Before 2008, there was a single post which covered both institutions, most recently held by Alex Gibbs. From September 2008, there will be separate posts for the two institutions (as is the practice with all other countries except for France which also has a single post for both institutions). The post of UK ED to the World Bank will be held by Susanna Moorehead while Alex Gibbs will remain ED to the Fund. In other countries separate EDs to the Bank and Fund may be political appointees. The UK executive directors hold regular meetings with NGOs in the UK in advance of the spring and autumn meetings of the Bank and Fund. The EDs head the UK delegation to the Bank and Fund (UKDel), based in an office in the IMF. The team comprises approximately nine staff from the UK. The team includes an alternate ED for the IMF from the Bank of England, who also represents the UK at the IMFC (Jens Larsen); and an alternate ED for the World Bank from the Treasury (in the interim move to two separate posts for the Bank and Fund, the alternate position will be held by DFID staff member Caroline Sergeant until September 2008); six advisors and five locally-hired assistants. Either the EDs, their alternates or advisors attend the regular meetings of the World Bank and IMF Boards. The policy lines taken at Bank and Fund board meetings are formally decided in London by the Treasury or DFID which then instruct the UK Delegation. Since the boards operate on the principle of consensus, there is no official record kept of the positions taken by EDs and no way for citizens to hold their representatives accountable. Limited information is given on the positions taken by the UK ED in the annual reports to Parliament, The UK and the IMF for the Treasury Select Committee, and the UK in the World Bank for the International Development Committee. World Bank policy - International financial institutions department and Global funds and development finance institutions departmentDFID's International Financial Institutions Department (IFID) is headed by Sally Taylor, with John Moye as the World Bank desk officer. IFID seeks analytical support from country offices or policy division teams (such as the climate and environment group, education for all or extractive industries teams). Out of total DFID spending of £4.6 billion in 2005-6, just over 10 per cent was spent directly on the IFIs. An unspecified additional amount is spent on country-level work, policy programmes and technical cooperation conducted jointly with the BWIs. (see below for a breakdown of IFID staff and their roles). The 'Global Funds and Development Finance Institutions' department (GFDD) is headed by Gavin McGillivray. IFID covers:
GFDD covers:
GFDD also covers the financing, administration and corporate governance of:
IMF policy - International Finance (HM Treasury)Within the Treasury, the International and Finance directorate holds ultimate responsibility for all international issues. It is jointly headed by former EDs Tom Scholar and Stephen Pickford. Within the directorate, the international finance department is responsible for preparing advice on the policy issues and specific country programmes brought before the Board of the IMF. The department is headed by Nicholas Joicey and the key units within it are the Global Economics team, formerly headed by Robert Woods; the International Poverty Reduction Team, headed by Calum Miller; and the Global Coordination and Strategy, with Harriet Wallace as its temporary hread. Within the Global Economics team sits the International Financial Institutions team, which is currently lacking a leader. Parliamentary oversightParliamentary oversight of the UK's role in the BWIs is provided ad-hoc through parliamentary questions, and more formally through select committees which oversee both DFID and/or the Treasury. A select committee inquiry may last for several months and give rise to a report to the House; other inquiries may simply consist of a single day's oral evidence which the Committee may publish without making a report. Evidence from non-UK civil society sources is now actively encouraged by the development committee for their hearings held each November. The political make-up of the committees roughly reflects the strength of the various parties in the House. The International Development Select Committee (IDSC), chaired by Liberal Democrat MP Malcolm Bruce, holds hearings on a range of development issues, as well as an annual hearing on the outcomes of the autumn meetings of the WB and IMF. The Committee usually calls on the Secretary of State for International Development to give evidence, and in recent years has allowed NGOs to do the same. Many civil society organisations have contributed written evidence over the last several years. The Treasury Select Committee analyses UK policy in the Fund, holding evidence sessions in the past with the IMF's managing director, the UK ED and NGOs. Since 2001 it has requested the Treasury to produce an annual report. It is chaired by John McFall, Labour MP. In 2006 it completed a report, Globalisation: the role of the IMF, for which the Bretton Woods Project gave written evidence. The UK and the World Bank-administered Climate Investment FundsThe UK is a key player in the Climate Investment Funds, which are administered by the World Bank. These funds, which currently consist of the Clean Technology Fund and the Strategic Climate Fund were launched at the G8 in July 2008 (see Update 61). So far, $6 has been committed been committed, of which £800 million from the UK's Environmental Transformation Fund. Teams from the UK's Department for Environment, Food and Rural Affairs (DEFRA) and DFID's Climate and Environment Group, in particular the low carbon development team, are playing a key role in shaping UK policy in relation to these funds. Key DocumentsDfID's World Bank Institutional Strategy Paper: DFID produces Institutional Strategy Papers (ISPs) about every three years to identify how to achieve its objectives via the multilateral institutions. The most recent DFID World Bank ISP was re-drafted in autumn 2004. DFID has failed to live up to its commitments to review the progress made by the Bank on its ISPs every twelve months. The ISP includes sections on: improving the depth of analysis for PRSPs, aligning Country Assistance Strategies with achievement of the Millenium Development Goals, and improved cooperation with other donors, especially the UN. DFID's public service agreement:This sets out how DFID is achieving its main targets and objectives, showing how they link to the Millennium Development Goals. Objective notes for the spring and annual meetings of the Bank and Fund: Innovative - if limited - joint briefing from DFID and Treasury laying out UK objectives for the main points of discussion on the agenda of the meetings. In 2004 during the IDSC hearing, the Secretary of State for International Develpment agreed that DFID would post the notes at least 10 working days in advance of the meetings. Annual reports on the UK and the IMF:Following pressure from NGOs and MPs the UK Treasury now produces an annual report setting out the main policy debates in the IMF and the UK government's role therein. DFID also produces a simliar annual report on the UK's involvement with the World Bank. Other key documents include ministerial statements in advance of the spring and autumn meetings of the Bank and Fund; DFID departmental reports and the 2000 Globalisation White Paper which sets out the policy priorities of the entire British government on international policies and institutions.
The UK Executive Director (Alex Gibbs), Alternate Executive Director (Caroline Sargeant) and Delegation staff
Malcolm Bruce, Chair International Development Select Committee
John McFall, Chair, Treasury Select Committee IFID, GFDD (DFID) and Climate and Environment Group
World Bank Team at IFID
Debt and IMF Team at IFID
RDBs Team at IFID
PSD Infrastructure and IFIs Team at IFID
Climate and Environment group at DFIDPlease refer to DFID's Climate and Environment Group organogram for further detail
Climate change adaptation
Low Carbon Development
Climate Frameworks and Carbon Markets
International and Finance Directorate Structure (HM Treasury)
Global Economics team within International Finance department
Global Coordination and Strategy within International Finance department
International Poverty and Climate Change team within International Finance department
UK Delegation to the IMF and World Bank
This text may be freely used providing the source is credited. This page is: <http://brettonwoodsproject.org/art.shtml?x=537382> Published: 31 July 2008 , last edited: 31 July 2008 Viewings since posted: 71297 |
Articles: 2324 CounterBalance, a new European coalition of development and environmental non-governmental organisations formed specifically to challenge the European Investment Bank (EIB), has launched its website. The EIB is the world's largest public lender. Find out more about it from CounterBalance. Newswire |
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