Dear IAMnet,
The recent decision by the World Bank Group Board of Directors to invalidate the IFC Compliance Advisor Ombudsman’s (CAO) investigation of IFC’s microfinance investments in Cambodia is unprecedented. As a result of the Board’s actions, CAO Director General Janine Ferretti resigned. Not only does the Board’s decision undermine trust in the World Bank Group’s accountability system, it also undermines the work of all independent accountability mechanisms (IAMs). If institutions’ Boards can disrupt pre-established (and Board-approved) accountability processes on an ad-hoc basis, stakeholders can’t trust or rely upon the legitimacy or predictability of IAMs. And we have seen time and again that these scenarios can easily become a race to the bottom on accountability, as other institutions follow suit. As the network of IAMs, IAMnet must use its collective power to push back on this encroachment on accountability; otherwise, all of your work is at stake.
As civil society organizations who advocate for accountability in international finance and have interacted with IAMnet for many years, we call on IAMNet to:
- Immediately issue a public statement condemning the World Bank Group Board’s decision and discussing the broad implications for development accountability. We refer you to this public statement from 103 civil society organisations and experts on the harms of the decision; and
- Suspend CAO’s IAMNet membership until assurances can be made concerning its independence. Operational independence is a criterion for IAMnet membership. Through the actions of the World Bank Group Board, CAO is not currently operationally independent as evidenced by the directive from the Board that restricts CAO’s ability to process existing and future microfinance complaints according to the CAO policy.
Your action or inaction during this time will speak volumes and will indicate to us whether and how we should continue our engagement with the network. We welcome a conversation to discuss how to protect communities’ access to IAMs during this time.
Sincerely,
Accountability Counsel
African Law Foundation (AFRILAW)
Arab Watch Coalition
Bank Information Center
Buliisa Initiative for Rural Development Organisation (BIRUDO)
CEE Bankwatch Network
Green Advocates International
Global Alliance for Incinerator Alternatives
Asia Pacific Jamaa Resource Initiatives
Inclusive Development International
Recourse
Society for WOmen Rights and Development (SWoRD) Pakistan
Sustentarse
Urgewald
CC: African Development Bank – Independent Recourse Mechanism Asian Infrastructure Investment Bank – Project Affected People’s Mechanism KfW Development Bank – KfW Central Complaints Office Black Sea Trade and Development (BSTD) – Complaints Mechanism Caribbean Development Bank (CDB) – Projects Complaints Mechanism, the Office of Integrity Compliance and Accountability European Bank for Reconstruction and Development (EBRD) – Independent Project Accountability Mechanism (IPAM) European Investment Bank (EIB) – Complaints Mechanism (EIB-CM) FinDev Canada – Independent Accountability Mechanism French Development Agency (AFD) – Environmental and Social Complaints Mechanism German Development Bank (DEG), Netherlands Development Finance Company (FMO), & Proparco – Independent Complaint Mechanism Green Climate Fund (GCF)- Independent Redress Mechanism Inter-American Development Bank Group (IDB) – Independent Consultation and Investigation Mechanism (MICI) International Finance Corporation/Multilateral Investment Guarantee Agency (IFC/MIGA) – Compliance Advisor Ombudsman Internationale Klimaschutzinitiative (IKI) – Office of the independent complaint mechanism (IKI ICM) Japan Bank for International Cooperation (JBIC) – Office of Examiner for Environmental Guidelines Japan International Cooperation Agency (JICA) – Examiner for the Guidelines Nippon Export and Investment Insurance (NEXI) – NEXI Objection Procedures on Environmental Guidelines Nordic Investment Bank (NIB) – Office of the Chief Compliance Officer U.S. International Development Financial Corporation (DFC) – Independent Accountability Mechanism United Nations Development Program (UNDP) – Social and Environmental Compliance Review and Stakeholder Response Mechanism World Bank – Inspection Panel and Dispute Resolution Service