Increased IMF Lending Announced

Aug 4th, 2009 10:48 AM EST
By Jessica Gomez-Duran

On Wednesday, the International Monetary Fund (IMF) announced it would increase lending to low-income countries to help contend with the global economic crisis. The IMF is expected to provide up to $17 billion to these countries through 2014, including up to $8 billion over the next two years. Additionally, the IMF said that these countries would not be required to pay interest on any IMF loans, including outstanding through 2011.

At their meeting in April, G20 leaders asked the IMF to respond to the global financial crisis and called for $6 billion in new lending to low-income countries. In April, ONE joined other organizations to ask the IMF to build upon successes of the G20 Summit in London and provide African countries with the resources they need to get through the financial crisis in a way that does not create unsustainable levels of debt. ONE called on the IMF to direct more of their own resources and more of the anticipated profits from an impending sale of gold reserves to finance these efforts. The IMF has met requests to increase low-interest resources. Critically, the Fund also announced that all loans through 2011 will have no interest rate charges. Interest rates after 2011 will also be reduced.

The IMF’s announcement as also included new provisions for delivery, including new and re-vamped lending instruments to better suit each country’s needs. These instruments include a standby credit facility for countries to draw funds from when necessary, improving flexibility for recipients. The resources for these new loans will come partially from the sale of IMF gold reserves, explained representatives of the IMF.

The fund said lending to low income countries has increased over the past year to four times historical levels. In sub-Saharan Africa, new IMF lending commitments from January to mid July 2009 reached $2.7 billion compared with $1.1 billion for all of 2008. The World Bank estimates that as many as 50 million people risk being pushed into extreme poverty in 2009. This scaled-up funding represents an IMF effort to limit this damage. The fallout from the financial crisis continues to impair developing countries in sub-Saharan Africa.

In response to the IMF’s announcement, ONE supporter Bob Geldof said, “until recently, trillions had been found for fiscal stimulus packages for the rich world but nothing much for the bottom billion. Dominic Strauss Kahn’s radical leadership at the IMF has delivered a major breakthrough for the poorest countries being battered by an economic crisis not of their making. Great credit goes also to Barney Frank and the U.S. Treasury for their strenuous work in driving this deal forward.”

In addition to what IMF has announced today, we are hopeful that the IMF is exploring options to provide more resources for grants or debt relief.

ONE Hosts Press Conference at IMF Headquarters

Apr 23rd, 2009 9:05 AM EST
By Mikiko Imai

Earlier today, ONE held a press conference with the African Development Bank at the International Monetary Fund (IMF) headquarters in Washington D.C. The panel was an interesting mix of distinguished African development advocates and officials, including ONE supporter and activist Bob Geldof; African Development Bank President Donald Kaberuka; Tanzania Finance Minister Mustafa Mkulo; and New York Congressman Gregory Meeks.

The meeting was held in anticipation of the IMF and World Bank annual Spring Meetings. Both institutions will be making critical decisions to follow up on the details of the G20 commitments and determine what will be delivered and with what conditions. The press conference was focused on how the Spring Meetings can provide low income countries - particularly African countries - with the resources they need to get through this financial crisis as well as build on recent development successes, without creating a future debt crisis.

At the event, Bob described how the economic crisis has continued to marginalize the poor peripheral parts of the world. Interesting, Bob remarked that $5 billion (the amount ONE is asking the IMF to provide to developing countries in grants and loans) is a tiny amount compared to the bailout given out in developed countries. Bob referred to a study commissioned by ONE that shows that by injecting $50 billion to Africa now will would increasing global output by as much as $250 billion. He called for aid to Africa to continue and challenged the group to think about how relatively small change can make a big difference.

Mr. Kaberuka described how Africa, in the past several decades, has been a story of progress and setbacks. He questioned the idea of a “banking crisis.” Rather, Africa faces an economic crisis. Mr. Kaberuka emphasized that the amount needed for developing countries is relatively small - the international community pledged $50 billion at the last IDA replenishment and $9 billion for the African Development Bank. Doubling these could have a significant impact.

(more…)

G20 Summit- Day After ReCap

Apr 3rd, 2009 9:16 AM EST
By Virginia Simmons

Overall, yesterday’s G20 Summit communique has left ONE very hopeful, but as always, with a lot of work on our plates. Below, I’ll quote the very succinct recap by our Global Campaigns Director Roxane Philson, and then I’ll include 3 very short flip camera interviews with some incredible G20 Voice bloggers: Nigerian blogger Sokari Ekine, Richard Murphy of the UK (who was able to ask a question about tax havens to Gordon Brown at his internationally-covered G20 press conference), and Kenyan blogger Daudi Were.

Roxy’s Summary:

“Yesterday’s G20 Summit looks like it made some real progress for the world’s poorest. Caution tells me that some of the vague language will take hard work to clarify, but this morning, as I re-read statements and news from yesterday, I am filled with a sense of hope and optimism.

Highlights include:

Resources: The G20 announced US $50 billion for low-income countries - although we are concerned this includes existing funding - and a further US $100 billion in lending for development banks.

Reform: Developing countries will have greater representation in the international financial institutions and that election to World Bank/IMF leadership will be based on merit.

Regulation: The G20 announced regulation of illicit tax havens.

As with all summits like the G20, we’re left with just as much work coming out of the summit as we had going in. We need to work to ensure that money going to developing countries is given as grants, not loans that trigger another debt crisis. Also, much more needs to be done on the green agenda in the interests of developing countries at the UN Climate Change Conference in Copenhagen later this year.”

And below, short interviews with 3 great global bloggers:

Nigerian Sokari Ekine of the blog Black Looks on attending the 2009 London G20 Summit:

UK Richard Murphy of The Tax Research Blog on asking a question on tax haven reform to British Prime Minister Gordon Brown at the internationally-covered G20 press conference:

Daudi Were, who lives in Nairobi, Kenya, and blogs at Mental Acrobatics blog, on the outcomes of the G20 Summit.

Attending the 2009 London G20 Summit as an accredited member of the media was absolutely the opportunity of a lifetime. I just want to publicly thank Karina Brisby, Shane McCracken, Samantha Bronnar, and everyone who put the G20 Voice project together and made it possible for 50 bloggers from around the world to attend this historic global summit. I hope it’s only the beginning for allowing new independent voices, particularly those from from the developing world, into these critical global discussions. I also want to thank our own Weldon Kennedy for handling all of ONE’s G20 Voice project work from the UK.

-Virginia Simmons

G20 Summit- Day After ReCap

Apr 3rd, 2009 9:08 AM EST
By Virginia Simmons

Overall, yesterday’s G20 Summit communique has left ONE very hopeful, but as always, with a lot of work on our plates. Below, I’ll quote the very succinct recap by our Global Campaigns Director Roxane Philson, and then I’ll include 3 very short flip camera interviews with some incredible G20 Voice bloggers: Nigerian blogger Sokari Ekine, Richard Murphy of the UK (who was able to ask a question about tax havens to Gordon Brown at his internationally-covered G20 press conference), and Kenyan blogger Daudi Were.

Roxy’s Summary:

“Yesterday’s G20 Summit looks like it made some real progress for the world’s poorest. Caution tells me that some of the vague language will take hard work to clarify, but this morning, as I re-read statements and news from yesterday, I am filled with a sense of hope and optimism.

Highlights include:

Resources: The G20 announced US $50 billion for low-income countries - although we are concerned this includes existing funding - and a further US $100 billion in lending for development banks.

Reform: Developing countries will have greater representation in the international financial institutions and that election to World Bank/IMF leadership will be based on merit.

Regulation: The G20 announced regulation of illicit tax havens.

As with all summits like the G20, we’re left with just as much work coming out of the summit as we had going in. We need to work to ensure that money going to developing countries is given as grants, not loans that trigger another debt crisis. Also, much more needs to be done on the green agenda in the interests of developing countries at the UN Climate Change Conference in Copenhagen later this year.”

And below, short interviews with 3 great global bloggers:

Nigerian Sokari Ekine of the blog Black Looks on attending the 2009 London G20 Summit:

UK Richard Murphy of The Tax Research Blog on asking a question on tax haven reform to British Prime Minister Gordon Brown at the internationally-covered G20 press conference:

Daudi Were, who lives in Nairobi, Kenya, and blogs at Mental Acrobatics blog, on the outcomes of the G20 Summit.

Attending the 2009 London G20 Summit as an accredited member of the media was absolutely the opportunity of a lifetime. I just want to publicly thank Karina Brisby, Shane McCracken, Samantha Bronnar, and everyone who put the G20 Voice project together and made it possible for 50 bloggers from around the world to attend this historic global summit. I hope it’s only the beginning for allowing new independent voices, particularly those from from the developing world, into these critical global discussions. I also want to thank our own Weldon Kennedy for handling all of ONE’s G20 Voice project work from the UK.

-Virginia Simmons

Getting into the G20 Media Room

Apr 2nd, 2009 9:31 AM EST
By Virginia Simmons

Like a kid on Christmas morning - or a global poverty advocate with accreditation to the G20 Summit - I was up early to start the day. Only 2,000 people are allowed into this summit, and we’ve been told that the 50 bloggers of the G20Voice project are the only members of civil society who were allowed accreditation. Below a photo journey of my way in.

I took this during my 5:30 am walk to the Tube -

which opened 6 minutes after I arrived.

I arrived at the proper station by sunrise for the first of four accreditation/passport checks.

Then we boarded the first of 2 shuttle buses.

Where we received our photo badges. (Somehow my passport ID was one number off in their records, but the woman behind the desk remembered my name from the list of bloggers she’d received, so I got in fine.)

We went through security.

Onto a “clean” bus.

And then into the Media Centre for the 2009 London G20 Summit.

Our Table

Apr 2nd, 2009 9:29 AM EST
By Virginia Simmons

Once inside the center, I found my way to the table with the large G20 Voice sign. We were told that we’d have a G20 sign just like all the G20 countries’ delegations’ tables had signs. But that didn’t turn out to be exactly right.

Our sign is much, much larger than the other ones.

Below- see our sign, and then Japanese and South African tables’ signs. (Note that South Africa is the only African country in the G20.)

And then here is a shot of our G20 bloggers table.

The Media

Apr 2nd, 2009 9:28 AM EST
By Virginia Simmons

There are over 2,000 media here to cover this summit and our job is to try and ensure developing country needs and voices are represented (more on this soon)… a daunting prospect in such a huge room (see below), with locations for every major TV broadcast, radio and newspaper in the world. Even the journalists themselves seem a bit lost – the smart outlets are taping homemade signs around on the walls so that people can locate them…

Today’s FT

Apr 2nd, 2009 9:24 AM EST
By Weldon Kennedy

Today’s Financial Times is loaded with a four page supplement on how the financial crisis is hitting African countries hardest, and a great opinion piece in the main paper from Bob Geldof about including developing nations in the new global economy.

William Wallis’s lead article in the supplement makes a powerful case for G20 taking urgent action to provide the resources developing countries need to weather this downturn, saying:

“Today many of sub-Saharan Africa’s 47 states are seeing their incomes evaporate, leaving holes in national budgets and foreign reserves as wide as the pits from which their resources have been extracted.

Without urgent measures to limit the damage, fragile recent development gains could be swept away, conflicts will reignite and more states will fail, warns Meles Zenawi, Ethiopia’s prime minister, who is representing Africa at today’s summit of the Group of 20 nations in London.”

Read the full supplement, or download the PDF - which will let you see ONE’s new advertisement in the paper.

What We Want Today

Apr 2nd, 2009 9:22 AM EST
By Virginia Simmons

14:23 updated with video

So- I just finished helping coordinate the CNBC interview with two African G20 Voice bloggers, Daudi Were of Kenya and Sokari Ekine of Nigeria alongside Bob Geldof. (I’ll be able to upload some video of it in a bit.) We are working to make sure the media are giving space for opinions and insights from Africa. Many media outlets are now coming by to interview Daudi, which is amazing.

Overall, it’s an incredible privilege to be able to attend this summit and to have the opportunity to advocate for ONE’s goals in such a giant room full of journalists who are often prone to forgetting to cover Africa. So what exactly are our goals? Here they are again below in a very simple list:

1. We want the leaders to agree an immediate $50bn fiscal stimulus for sub-Saharan Africa – many African countries are suffering from the effects of economic downturn, even though they were little to do with the origins of the crisis. Vital development assistance will not only help save trade and jobs but also lives.

2. We also want international institutions to be reformed so that the people of developing countries have a voice at the global level. The World Bank and other organizations are run by developed countries – making them represent developing countries will help ensure a fairer world.

3. We also need better regulation of the financial system – over $800billion of illicit cash flows out of tax havens – imagine if governments could capture that money and put it to good use. So we’re hoping for a deal on tax havens today.

Ok…back to working the room.

Brown and Obama press conferences

Apr 2nd, 2009 9:20 AM EST
By Chris Scott

A couple hours ago British Prime Minister Gordon Brown held a global press conference at the London G20 Summit, and right now, US President Barack Obama is holding one as well (which ONE’s Virginia Simmons is currently attending.)

Here are some important excerpts from Brown and Obama’s speeches:

Brown:

This time of financial crisis is no time to walk away from our commitments to the world’s poorest. So when people are suffering – and, yet, it is within our capacity to help – we will not pass by on the other side. We remain firmly committed to meeting the millennium development goals and all of our pledges on aid. To deal with this crisis we have today asked the IMF to bring forward proposals to use the proceeds of agreed gold sales to support low income countries. So in total we have now reached agreements worth $50 billion for the poorest countries - alongside our support for a world bank vulnerability fund.

Obama:

Finally, we are protecting those who don’t always have a voice at the G-20, but who have suffered greatly in this crisis. The United States is ready to lead in this endeavor. In the coming days, I will work with Congress to provide $448 million in immediate assistance to vulnerable populations, and to double support for agricultural development to over $1 billion so that we are giving people the tools they need to lift themselves out of poverty. We will also support the United Nations and World Bank as they coordinate the rapid assistance necessary to prevent humanitarian catastrophe. This is not just charity though. These are future markets for all countries, and future drivers of growth.

-Chris Scott