Bank Information Center

International Financial Institutions

101

IFI basics: what’s inside

• What are the IFIs and why are they important?

• Which IFIs are active in your region and country?

• What is the WBG and what does it do?• How is the WBG active in your country?• Why work on the IFIs?• What influences the IFIs?

What are the IFIs and why are they important?

IFIs are publicly owned institutions (controlled by member countries) that provide financing to governments and corporations operating in the “developing” world and transition economies

• Multilateral Development Banks (MDBs)– World Bank Group (WBG)– African Development Bank (AfDB)– Asian Development Bank (ADB)– Inter-American Development Bank (IDB)– European Bank for Reconstruction and Development (EBRD)– Islamic Development Bank (IsDB)

• International Monetary Fund (IMF)

• Others: European Investment Bank, Export Credit Agencies (ECAs) Public interest missions: poverty reduction

IFIs active in North Africa

• WBG (IDA, IBRD, IFC, MIGA)• IMF• EIB• AfDB• IDB

What is the WBG and what does it do?

Arguably the world’s most influential “development” institution, although no longer the largest international financier

• Lender – four financing arms, providing funds to government and companies

• Knowledge broker – cornered the research market

• Gatekeeper – influences decisions of other donors, country and company access to financing

The World Bank GroupHow does it work?

IBRDEst. 1944

Medium-term, near market rate loans to middle

income countries

IDAEst. 1960

Long-term, concessionary

loans and grants to poorer countries

IFCEst. 1956

Loans, equity and technical

assistance to private sector

MIGAEst. 1988

Political risk insurance to

investors

Public sector Private sector

ICSID Est.1966; settles arbitration disputes

between foreign investors and governments.

BOARD OF GOVERNORSOne representative for each of 184 member

countriesMeets once per year

BOARD OF DIRECTORS24 Executive Directors represent all 184 member

countriesDay to day decision-making on projects and

policies

WORLD BANK PRESIDENTOversees all five arms of the World

Bank GroupInspection Panel CAO

Project cycle

1. CAS (country assistance strategy)2. Identification3. Preparation, Appraisal and Board Approval4. Implementation and Supervision5. Implementation and Completion6. Evaluation

WBG in North Africa

The Arab World Initiative• Integration to the global economy• Regional integration• Employment• Marginalized and minorities (women and

youth)• Governance• Water

IDA & IBRD in MENA

• The Bank committed $1.5 billion in loans, credits, and grants to the region in fiscal 2008.

• The Bank delivered 44 economic and sector work activities and 85 non-lending technical assistance activities in fiscal 2008.

IFC in MENA

• In fiscal year 2008, IFC investment commitments reached $1.4 billion for 50 projects, up from $1.2 billion for 40 projects in fiscal year 2007 and $668 million for 29 projects in fiscal year 2006.

• PEP/MENA (Private Enterprise Partnership)

African Development Bank

• Same Mandate as the World Bank• Same management system• North Africa is the largest borrower region

(most important Morocco, Tunisia and Egypt)• Major sectors: financial, power and

transportation.

The IFIs and your rights• Access to information: the right to

know and disclosure policies at the WBG– Public information

• Safeguard policies: social and environmental protections

• Accountability: public complaint mechanisms– Inspection Panel (IDA/IBRD)– Compliance Advisor Ombudsman

(IFC/MIGA)

Why work on the IFIs?• advocacy targets: finance problematic policy reforms

and investments

• sources of information: documents, data, contacts

• sources of pressure on governments and companies: influence through financing, advice and assessment

• channels of access to accountability: public institutions with unique obligations, standards, commitments and complaint mechanisms

• lightning rods for international attention: increased access to international advocacy networks and media

Government owners of Banks (Finance Ministers, Boards of Directors; Parliaments)Why? stake in institution—reputational, legal,

financial

Media (public and commercial opinion)Why? Reputational pressure; Bank has

international cache, influence on international markets and actors

Social mobilization (people on the ground)Why? ability to stop and alter projects/policies

through protest, mobilization

What influences IFIs?

Visit: Visit: www.bicusa.org Contact: Contact: info@bicusa.org