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THE PARLIAMENTARY NETWORK
On The World Bank & International Monetary Fund
GLOBAL PARLIAMENTARY
CONFERENCE 2017
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TABLE OF CONTENTS
EXECUTIVE SUMMARY
FOREWORD
2
4
DAY 1
WELCOME ADDRESS
FIGHTING INEQUALITY THROUGH JOB-CREATION & GROWTH
SPECIAL SESSION WITH THE LEADERSHIP OF THE IMF AND THE WORLD BANK GROUP
BUILDING INCLUSIVE INSTITUTIONS AND PARLIAMENTS
TACKLING CORRUPTION IN GOVERNMENT AND THE PRIVATE SECTOR
SUB-SAHARAN AFRICA: GROWTH PROSPECTS & CHALLENGES FOR THE NEXT DECADE
SPECIAL ADDRESS BY H.E. KEMI ADEOSUN, MINISTER OF FINANCE, NIGERIA
ADDRESS BY SPEAKERS OF PARLIAMENT
5
7
10
14
15
18
20
22
DAY 2
IMF COUNTRY ENGAGEMENT
THE ROLE OF PARLIAMENTS IN TACKLING THE SDGS
UNDERTAKING REFORM OF ENERGY SUBSIDIES
MITIGATING CLIMATE CHANGE
THE WEEK AHEAD: THE SPRING MEETINGS POLICY AGENDA
INVESTING IN HUMAN CAPITAL AND EARLY CHILDHOOD DEVELOPMENT
CONCLUSION
23
25
27
29
31
33
35
ANNEXES
ANNEX 1: List of resources by topic
ANNEX 2: Meet the new Parliamentary Network Board members
ANNEX 3: About the Parliamentary Network, World Bank and IMF
Contact us
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EXECUTIVE SUMMARY
About 200 participants, including over
160 parliamentarians from 66 countries
took part in the
2017
Global Parliamentary Conference
(GPC) on
17-18 April 2017 at the World Bank Group and IMF
headquarters in Washington D.C,
USA.
Co-organized with the World Bank Group (WBG) and the International Monetary Fund (IMF) the GPC
is the Parlia e tary Net ork’s flagship e e t a d represe ts a
unique meeting of legislators and
development institutions,
an event dedicated to crucial questions in international development
finance, including economic stability, achieving the Sustainable Development Goals and, more
generally, pushing international development initiatives to new heights of awareness and potential.
The conference also serves to build political will and financial capital for development by bringing
together legislators, the IMF and World Bank leadership, and high-level representatives from civil
society and partner organizations.
The conference came at a critical juncture for the international community at a time when ; local
citizens, private sector actors, legislators, government bodies, and international organisations all
have a substantial role to play in harnessing and facilitating results so that we can achieve poverty
eradication and macroeconomic stability and achieve the global development agenda. The
conference offered parliamentarians a platform to discuss and share their experiences and
knowledge on key development issues including the creation of jobs, the fight against corruption, the
building of inclusive institutions, energy subsidies reforms and climate change mitigation, and early
childhood development. The event also shed light upon the regional development prospects of sub-
Saharan Africa through a dedicated session and a
keynote address from HE Kemi Adeosun, Nigerian
Minister of Finance,
during which a better redistribution of wealth, the necessary diversification of
African economies and an increase in revenue mobilization were highlighted as a focus for
parlia e taria s i their legislati e ork, so as to e sure that the co ti e t’s de ographic tra sitio
translates into the integration of its labour force.
The 2017 GPC featured a
special session with the leadership of the World Bank Group and IMF,
during which members of parliaments had the possibility to ask questions directly to President Jim
Yong Kim and Managing Director Christine Lagarde.
Both, Dr. Kim and Mme Lagarde outlined the
challenges that lie ahead for global cooperation, underlining the increasing rise in aspirations to be
met and the necessity to capitalize on the positive economic momentum we are witnessing since the
financial crisis. They highlighted the role parliamentarians can play in overcoming these challenges by
drafting legislation and making policies to spur job-creation, by keeping their government
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accountable and preventing budget misspending and corruption, by reforming the discriminating
laws preventing women from contributing to the economy, and by championing, in their Parliament,
the World Bank International Development Association
1
(IDA) replenishment.
The discussions looked at how parliamentary involvement can be harnessed and strengthened, as
well as how to foster continuous parliamentary involvement in the implementation process of the
sustainable development goals. The participants recognized the complementarity between members
of parliaments and development experts and called for a continued dialogue with international
organisations such as the World Bank Group and IMF to allow the former to share their knowledge
and information and the latter to provide feedback from the ground.
The added value of networks was reasserted during the conference. At the country level, examples
were shared of successful climate and nutrition specific networks through which parliamentarians
were able to advocate and obtain better forest governance and dedicated budget lines for nutrition.
Parliamentary Network chapters have also facilitated the engagement of legislators with World Bank
and IMF country offices. At the global level, the Parliamentary Network has namely contributed to a
record replenishment for IDA18 by reaching out its members from key parliamentary committees in
the allocation of budget. Sixty percent of the amount collected for IDA18 will be dedicated to sub-
Saharan countries.
Parliamentarians play a critical role in meeting developmental challenges by: ensuring the definition
of policies to foster job-creation, implementing energy reform and appropriate taxation; keeping
their government accountable and fully exercising their oversight functions; shaping an efficient legal
framework against corruption which ensures transparency, disclosure, and the protection of public
officials; and discussing and using the information from scientific and expert reports in their
parliament and dedicated committees. Such practices would enable legislators to turn
recommendations into actionable policies on the ground.
The conference was also the occasion for the Parliamentary Network to hold a General Assembly and
elect a new board, composed of five new members and five re-elected ones and among which each
region of the world is represented:
1.
Jeremy Lefroy,
MP, UK
2.
Olfa Soukri Cherif,
MP, Tunisia
3.
Alain Destexhe,
Senator, Belgium
5.
Pauline Bekono Ebah Ndoumou,
MP, Cameroon
4.
Oscar Mauricio Lizcano Arango,
President of the Senate, Colombia
6.
Shamsul Iskandar Mohd Akin,
MP, Malaysia
7.
Lahcen Haddad,
MP, Morocco
8.
Nathan Nandala-Mafabi,
MP, Uganda
9.
Olga Bielkova,
MP, Ukraine
10.
Percy E. Downe,
Senator, Canada
1
The I ter atio al De elop e t Associatio IDA is the part of the World Ba k that helps the orld’s poorest
countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans (called
credits a d gra ts for progra s that oost eco o ic gro th, reduce i e ualities, a d i pro e people’s
living conditions.
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Foreword
About the Global Parliamentary Conference
The Global Parliamentary Conference (GPC) represents a unique meeting of national legislators and
development institutions, an event dedicated to crucial questions in international development
finance, including economic stability, achieving the Sustainable Development Goals and, more
generally, pushing international development initiatives to new heights of awareness and potential.
The conference also serves to build political will and financial capital for development.
The GPC, organised together with the World Bank Group (WBG) and the IMF, is the Parliamentary
Net ork’s flagship e e t. It ri gs together
over 150 parliamentarians from approximately 100
countries, leaders from civil society and partner organizations, and high-level officials from a number
of international financial institutions such as the World Bank, IMF and other regional development
banks. Keynote speakers include the Managing Director of the IMF and the President of the World
Bank Group. The event is hosted by the World Bank Group and IMF in Washington DC, USA.
The focus is on a range of issues from fighting inequality through job-creation and growth, tackling
corruption in government and the private sector, growth prospects and challenges for sub-Saharan
Africa, fighting climate change, eliminating energy subsidies, and building inclusive institutions and
parliaments. Discussions look at how parliamentary involvement can be harnessed and strengthened,
as well as how to foster continuous parliamentary involvement in the SDGs implementation process.
Acknowledgements
The Parliamentary Network would like to thank the World Bank Group and the International
Monetary Fund, for their support in organizing the event. The PN would also like to express its
gratitude to the speakers, discussants, moderators, and participants. The PN is also thankful to the
numerous organizations who collaborated in making the Conference a success. Last but not least, the
PN wishes to thank its members who came from all over the world to take part in this important
gathering.
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Welcome address
Speakers
Hon. Jeremy Lefroy,
MP United Kingdom; Chair of the Parliamentary Network on the World
Bank & IMF
Gerry Rice,
Director, Communications Department, IMF
Jill Wilkins,
Director, Global Engagement, External Affairs, World Bank Group
Parliamentary Network Chair Hon.
Jeremy Lefroy
(MP United Kingdom) opened the 2017 edition of
the Global Parliamentary Conference (GPC), expressing how much international organizations, like
the World Bank and the IMF, are vital to address global challenges. With the World Bank and IMF
support, the Parliamentary Network organized several activities for its members this year, including
the launch of its Middle-East and North Africa Chapter, a Field Visit to Kenya, and the launch of a
website
on youth job creation jointly with Peace Child International. The participation of World Bank
President Jim Yong Kim and IMF Managing Director Christine Lagarde at the 2017 GPC is a testimonial
of the importance
placed o the Parlia e tary Net ork’s
role as a platform for dialogue between
parliamentarians and international financial institutions.
Jill Wilkins
greeted the participants before explaining that, each year, government ministers and
representatives in the field of finance and development, private sector executives, academics and
civil society organizations gather at the World Bank and IMF Spring Meetings to debate pressing
global issues, including the world economic outlook, development and aid effectiveness, as well as
poverty eradication. As development stakeholders, parliamentarians are invited to take part in these
discussions and to engage on a regular basis with the World Bank in order to make its actions more
relevant to their country.
The World Bank is
happy to include
input from MPs in
Country Partnership
discussions and to
facilitate field visits
and other activities
for legislators”
Jill Wilkins, Director,
Global Engagement,
External Affairs, World
Bank Group
Welcoming the participants to the 2017 GPC
Gerry Rice
announced the launch of the IMF World
Economic Outlook
2
on the occasion of the Spring Meetings. The outlook gives an account of where
the global economy stands. The world economy is currently gaining momentum but it is also subject
2
Find out more about the IMF World Economic Outlook
here
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to risks such as protectionism or populism. In order to maintain it, the IMF recommends fostering
trade and innovation with a focus on securing equitable growth. It is, therefore, healthy to debate
about the role of international cooperation in the Bretton Woods framework with the aim of
achieving a broader consensus. Mr. Rice invited the parliamentarians to get involved in the
discussions.
“It is a big agenda and you,
MPs, are a part of it. Let
your voice be heard”
Gerry Rice, Director,
Communications Department, IMF
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Fighting inequality through job-
creation & growth
Moderator
Hon. Olfa Soukri Cherif,
MP Tunisia; Vice-Chair of the Parliamentary Network on the World
Bank & IMF
Speakers
Michal Rutkowski,
Senior Director for the Social Protection, Labour and Jobs, Global Practice,
World Bank Group
Prakash Loungani,
Division Chief, Research Department, IMF
David Woollcombe,
Founder, President and Chair of Trustees, Peace Child International
Discussant
Pauline Ngari,
CEO, Hand in Hand Eastern Africa
Michal Rutkowski
highlighted the paradoxical trends currently existing around inequality. While
inequality between countries has been reduced, it keeps increasing within countries. Mr. Rutkowski
identified four important elements to understand inequality and how to address it: 1) taxation,
which, however, is subject to increasing criticism; 2) education, with limited results because of the
few available jobs on the labour market; 3) trade unions, which are now in demise; 4) technology,
used to increase productivity; it has however completely reshuffled the distribution of labour. He
insisted skills are a key factor: they need to be better defined in order to provide everyone with
quality education and the needed curricula to face the labour market.
Referring to the International Jobs Report published in early 2017
3
,
Prakash Loungani
provided an
outlook on unemployment. He explained that the unemployment rate has been reduced in advanced
economies, mostly thanks to growth; contrarily to the situation in emerging markets where the
unemployment rate went up. In all regions, growth remains strongly linked to unemployment: when
the former is restored, the latter decreases as a consequence of job-creation. Mr. Loungani called for
domestic policies that would foster inclusive growth. Inequality causes disruption, namely in
consumption and therefore hinders growth. Through adequate fiscal policies, focusing on equity,
governments and parliaments can ensure that growth delivers jobs to the people.
David Woollcombe
underscored that employment is an important concern for the young. In order to
achieve the sustainable development goals (SDGs), over a billion jobs need to be created by 2030; a
complicated task for governments. This observation led Mr. Woollcombe to join forces with the
Parliamentary
Network
to
create
a
youth
job
creation
dedicated
website
(www.youthjobcreation.org) where approaches are set out for reflection: changing mindsets to
introduce skills teaching in curricula; skills matching between university students and recruiting
sectors; encouraging mentorship; engaging the private sector; facilitating administrative access to
entrepreneurship; and improving the metrics on employment. Members of parliaments are welcome
to share ideas and success stories from their country.
3
International Jobs Report:
Edition 2016, Prakash Loungani, OCP Policy Center. Available
here
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Comments from the discussant
Pauline Ngari
highlighted the need for stakeholders to invest more in employment. Job-creation is a
priority for Hand in Hand who works to link their proposed solutions to sustainability and
parliamentary responsibility. Ms. Ngari insisted that partnerships lie at the heart of success, as set in
the SDG 17
4
. She invited members of parliaments to commit to the full implementation of policies
because job-creation and sustainability make the required combination for achieving development.
Discussion
During the discussion that followed, participants made comments related to:
The role of MPs in fostering job-creation and growth
Thanks to their on the ground knowledge and to their link with constituencies, MPs have an
accurate idea of the efficiency of policies.
MPs also contribute through the proper scrutiny of domestic policies
MPs can be more efficiently supported in their work if provided with concrete suggestions in
addition to expert reports and data.
o
Mr. Rutkowski agreed that while parliamentarians may not always have enough time to
read all World Bank reports, such reports often contain useful information for their
legislative work.
“We don’t need thick
manuals of
recommendations; we
need state of the art
solutions that we can
impose as MPs in
Parliament”
Hon. Safa Alhashem, MP, Kuwait
Concern over corruption
Corruption has been highlighted as a global problem that hinders jobs.
Technological improvement and automation
Over the last ten years, information technology has spread in most sectors.
In some developing countries, worries exist as to the adoption of automation.
o
Mr. Rutkowski cited labour market automation as an area worth of focus in order to
better adapt to the many technological evolutions.
4
Sustainable development goal 17:
Strengthen the means of implementation and revitalize the global
partnership for sustainable development.
More info:
https://sustainabledevelopment.un.org/sdg17
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Improving the education system for better skilled human capital
Primary education reform will prove difficult in sub-Saharan African countries where human
capital is already very low with children suffering from malnutrition and stunting.
o
Mr. Woollcombe admitted that literacy should be a foundation for development.
o
Ms. Ngari explained that Hand in Hand advocates the identification and teaching of the
necessary skills for entrepreneurship.
Addressing the gender gap
Reducing the gender gap through economic empowerment of women will ensure the
reduction of women unemployment.
o
Ms. Ngari gave more information on Hand in Hand’s focus for women’s empowerment,
encouraging them to create their own businesses.
o
Mr. Woollcombe advocated for a more holistic approach to job-creation, with no gender
distinction in job-creation initiatives.
Mr. Loungani pointed out that while most comments raised by the participants were related to the
supply side of job-creation, one needs to also look at the aggregated demand, for which central
banks have an important role to play.
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Special session with the leadership of
the IMF and the World Bank Group
Moderator
Hon. Jeremy Lefroy,
MP United Kingdom; Chair of the Parliamentary Network on the World
Bank & IMF
Speakers
Mme. Christine Lagarde,
Managing Director of the IMF
Dr. Jim Yong Kim,
President of the World Bank Group
Dr.
Jim Yong Kim
expressed his gratitude to the parliamentarians and the Parliamentary Network for
contributing to global cooperation at a challenging time for globalisation and more specifically for
supporting the replenishment of the International Development Association, of which 60% will be
dedicated to the sub-Saharan African region. With increasing access to the internet came a rise in
aspirations to be met in order to avoid frustration, worry, and ultimately situations of fragility,
conflict and migration. Two thirds of existing jobs could disappear because of automation if
investment does not increase. The World Bank and IMF therefore need to act swiftly to meet
people’s
rising expectations by fostering private sector investment and by giving the required
attention to human capital as the economy becomes increasingly digitalized.
“It’s a challenging
time and your
presence here
speaks volumes
about the level of
commitment
parliamentarians
have shown to
helping people
achieve their
aspirations”
Jim Yong Kim, President
of the World Bank
Group
MPs are the best ones to talk to because they represent the people
said M e
Christine Lagarde,
explaining that, for the first time since the financial crisis, a positive momentum exists today, marked
by a faster pace for growth in both advanced and emerging economies. She invited all
parliamentarians to fuel this momentum by making sure that governments are properly held
accountable and that the existing fiscal space is not misspent. Mme Lagarde also called for using
public money to help workers who will need to adapt to the technological changes in the supply
chain, and encouraged parliamentarians to contribute to the carving of legislation that would justly
reflect the o e ’s co tri utio to society a d facilitate their i tegratio to the eco o y.
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“I am trying to put myself in
your shoes and I know that, as
an MP, we like to keep the
government accountable (…).
So anything that you can do to
focus on the risk of corruption,
how to identify where the
money goes and how it is spent
(…) in order to better trace the
use of public revenue will be
extremely helpful.”
Christine Lagarde, Managing Director
of the IMF
Discussion
Members of parliament were given the opportunity to engage directly with the World Bank President
and the IMF Managing Director during a Q&A session on:
The role of international financial institutions
As an organization working for global financial stability and openness, the IMF can benefit
any economic actor, explained Mme Lagarde; for instance, by contributing to the safety of
their deposit.
MPs were also eager to know more about the relation between parliaments and the two
institutions:
o
Mme Lagarde and Hon. Lefroy invited the participants to engage with IMF and World
Bank country offices, and to get involved in the Parliamentary Network activities.
Jobs and livelihoods
Dr. Kim explained that jobs and livelihoods were a concern for every country and he pointed
out that a significant part of future jobs is likely to be concentrated in the sector of human
e pathy e.g. healthcare, childre ’s
care, elderly care).
Mme Lagarde further specified that care workers could contribute to women empowerment,
allowing them to dedicate more time to an economic activity.
The lack of inclusiveness in employment, especially with disabled people often being left out,
has led to reflections on how to include those being left behind.
o
Dr. Kim highlighted that failing to include the disabled actually has an economic cost.
Fighting corruption
The high-level of corruption - representing over 6.6 trillion dollars - were highlighted along
with the necessity for both the World Bank and the IMF to do more in that field.
o
Mme Lagarde explained that the IMF does country analytical and surveillance work
and that programmes could be suspended in known corruption cases. It also
provides assistance against money laundering and terrorism and other initiatives
e ist such as the OECD’s Base Erosio a d
Profit Shifting (BEPS).
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o
Dr. Kim added that the World Bank had practice on Illicit Financial Flows as well as an
asset recovering programme and that it is working with the IMF and the OECD in
inducing people to pay their fair share of taxes.
Overseas development aid
The decreasing amount of aid received in some sub-Saharan African countries represents a
challenge, especially in the field of education.
Gender equality
The importance of having gender-sensitive and youth-sensitive budgets was raised.
o
Mme Lagarde deplored that international organizations could not make gender a
compulsory component of national budget. Peer learning between countries can
facilitate the implementation of gender-sensitive budgets and fairer tax legislation.
o
GDP gains can be drawn from ending discriminating legislation against women, said
Dr. Kim. He added that childhood stunting could be prevented if women were
allowed to maintain their jobs after giving birth and to better care for their children.
The benefits and costs of globalization
The benefits of globalization have been questioned as these may have mostly been accrued
to a few and, in turn, fueled a new wave of protectionism.
o
Mme Lagarde reminded parliamentarians that hundreds of millions of people have
been taken out of poverty thanks to globalization. She recognized that a significant
part of the population has been left out and suffers from the negative side of the
technological breakthrough, seeing their jobs replaced, and, therefore, called all
actors to join forces against economic and trade barriers.
Despite global growth, action is needed for countries where poverty increased.
o
Mme Lagarde agreed that growth did not benefit everyone and asserted that the
IMF was committed to providing technical assistance, advice, and loans for countries
in need to help them stabilize their economy and restore
the i estors’
trust.
The critical consequences of climate change
Global warming has aggravated the Somali crisis, causing a severe famine.
o
Dr. Kim explained that the World Bank has dedicated a $6 billion budget to the
famine response and privileged a mitigation and adaptation approach in order to
avoid political conflict arising from climate change.
The scarcity of water resources is a serious issue in countries like Pakistan, especially when
dams are built.
o
Because disputes over water resources are imminent, Dr. Kim called for
private/public solutions to ensure everyone has access to clean water.
Support to countries welcoming refugees
The role of the international community in helping Jordan and Lebanon was deemed
insufficient, especially given the fragilities of both economies.
o
Dr. Kim stressed that the refugee crisis faced by the two countries led the World
Bank to create Concessional Financing Facilities, in order to support job creation and
greater access to the European and American markets. He added that political
instability has made it difficult for the World Bank to work in Lebanon, especially in
the fields of education and health.
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The regional outlook for Latin America
Mme Lagarde explained that unemployment figures for the region were quite high, calling
for increasing macroeconomic stability, and spending in growth-friendly areas, with a focus
on productivity and innovation.
Extractive industries
The porous character of extractive industries and oil economies was highlighted, along with
the lack of jobs created in the field.
o
Dr. Kim agreed that most commodity exporters now suffer from low growth rates;
they need to diversify their economies in order to create more jobs, to invest in
people, and to invest in energy infrastructure. In that regard, the World Bank can
help in structuring deals with companies.
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Building inclusive institutions and
parliaments
Moderator
Mitchell O’Brie
, Senior Governance Officer, World Bank Group
Speakers
Deborah Wetzel,
Senior Director, Governance Global Practice, World Bank Group
Hon. Neila-Mia Tazi,
V
th
Vice-President of the House of Councilors, Kingdom of Morocco
Daniel Freund,
Head of Advocacy EU Integrity, Transparency International
Mrs.
Deborah Wetzel
mentioned the main findings of the 2017 World Development Report
5
which
reveal that the successful implementation of policies requires commitment and continuity over the
long-term, coordination of beliefs with citizens, and the prevention of free-riding and opportunism.
Fro a parlia e taria ’s perspecti e,
this entails: 1) making laws, thus defining behaviours, defining
constitutional aspects, and embodying contestation; 2) holding governments accountable by
encouraging the right commitments and providing oversight; 3) representing the people through
deliberation and giving a voice to communities.
As a representative of the private sector in parliament, Hon.
Neila-Mia Tazi
highlighted the specificity
of the Moroccan parliament of granting representation, since last year, to private sector and trade
union representatives in its House of Councilors. This has so far allowed for enriched parliamentary
debates especially on topics linked to the economy and investment, where the private sector is
directly involved.
“MPs are quite eager to hold the
government into account but when it
comes to writing rules that apply to
them it becomes much more difficult.
But the harm that can be done, the
loss of public confidence, is a cause
that is worth fighting against
Daniel Freund, Head of Advocacy EU
Integrity, Transparency International
Mr.
Daniel Freund,
who has been working on integrity in the European Parliament, focused on a few
important points to enhance transparency in parliament. Parliaments are meant for debates and
ought to be completely open, including committee meetings. He called for a regulation of lobbying
and interest activity in parliament in order to avoid conflict of interests. If members of parliament
take on the transparency challenge and implement the necessary rules, they will give themselves the
proper tools to get the best outcomes from their parliamentary work and will gain public confidence.
5
Read
the
7 World De elop e t Report Go er a ce a d the La
here
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Tackling corruption in government and
the private sector
Moderator and discussant
Hon. Yunus Carrim,
MP South Africa
Speakers
Sean Hagan,
General Counsel and Director, Legal Department, IMF
Ethiopis Tafara,
Vice President for Sustainability and Integrity, and General Counsel,
International Financial Corporation, World Bank Group
Karan Bhatia,
Vice President and Senior Counsel, International Law & Policy, General Electric
Company
Mr.
Sean Hagan
prese ted e ide ce of corruptio ’s i pact o the eco o y, an
important topic to
the IMF. Systemic corruption indeed
u der i es the go er e t’s a ility to deli er i clusi e
economic growth. If the tax system is corrupt, the wealthiest can avoid paying their tax in impunity,
thus u der i i g the cou try’s fiscal sta ility.
Corruption also discourages foreign investment.
Finally, Mr. Hagan pointed out that systemic corruption distorts investment priorities at the expense
of the most useful sectors, thus exacerbating inequality when public services are ignored and
potentially fuelling popular unrest. Legislators can make sure that public officials have a living wage
that dissuades them from accepting illicit financing and an effective legal framework to protect them.
Mr.
Ethiopis Tafara
laid out the precautionary measures taken by the International Financial
Corporation (IFC) in its activities. When supporting a company, the IFC helps mobilize private capital;
however, such capital is conditioned to the absence of corruption. Indeed, if one invests in a
company with weak governance, then the investor risks losing money; and when fraud is rampant
companies are bound to fail. The IFC therefore
looks at each co pa y’s i tegrity a d akes a
corporate governance assessment. Mr. Tafara called on parliamentarians to fight corruption by
fostering transparency, protecting whistle-blowers, ensuring the independence of the judiciary and
enforcing the law.
A representative of the private sector, Mr.
Karan Bhatia
e plai ed that his co pa y’s history had
been tarnished by corruption hence the firm policy against corruption coming from the top
management. Integrity norms are now considered by General Electric as a competitive advantage,
after having experiencing the damage of corruption. Mr. Bhatia invited everyone to be discriminating
ith their cou try’s co pa ies,
by rewarding those who respect their integrity commitments.
Comments from the discussant
Hon.
Yunus Carrim
highlighted that most of the recommendations addressed to the participants
were related to democratic values, but that despite efforts, corruption still persists. The private
sector has a responsibility to take measures especially when companies such as Amazon, Google, or
Starbucks, choose not to pay their faire share of taxes. Investors sometimes do invest in corrupted
sectors, when it allows them to avoid procurement rules. Hon. Carrim pointed out that although
corruption was more important in developing countries, multinationals owned by rich countries do
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not always behave ethically either. Corruption can seem difficult to reverse when occurring in
context of inequality, but political leaders need to take more decisive action.
Discussion
During the discussion that followed, participants made comments related to:
The role of the World Bank and IMF in fighting corruption
Several participants called on the World Bank and IMF to do more against corruption.
o
Mr. Hagan admitted that the IMF could do more, which is why the organization was
currently reviewing their policy on the matter. So far, the IMF uses three tools: the
suspension of lending (1); surveillance in transparency (2); as well as in anti-money
laundering (3). However, it does not have prosecution powers; it is thus for the
country to enforce the law in cases of corruption.
o
Mr. Tafara added that, in the case of IFC, the institution invests in good governance
companies; however, it has happened that the IFC pulled a loan out if the company
proved not to be reliable. The World Bank Group has a Vice-Presidency dedicated to
investigating companies and flagging the ones which do not qualify. For instance, the
IFC does not engage with companies who are not transparent and/or are registered
in tax heavens.
A broader approach in the fight against corruption
While
the discussio
ostly focused o ri ers, there is also de a d
from bribe-takers.
o
Mr. Bhatia explained that when corruption is looked at from a risk/reward
perspective, it is easier for large companies than for medium and small-sized
company to avoid getting involved in suspicious business.
Mr. Tafara invited the audience to look at corruption through other forms of influence
besides payments. Companies owned by government officials, for instance, are a potential
source of conflict of interest.
Enhancing public finance and the fiscal system
In countries such as Brazil, the fiscal system weaknesses do not allow to counter tax evasion.
o
According to Mr. Hagan, increased fiscal transparency and public records help
improve tax collection.
The role of parliamentarians
The example of the South African parliament provided the participants with a case where
parliamentarians decided to tackle corruption through the establishment of several
committees, along with the ability for MPs to call on any relevant actor (including banks) if
necessary.
Parliamentarians can bring back the knowledge from financial reports and other publications
to their home parliaments.
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“We need a shift
in the way
members of
parliament do
business, for the
sake of their
people”
Hon. Yunus Carrim,
MP South Africa
Partnerships
Participants expressed their will to work in the framework of a strong multi-stakeholder
alliance including civil society organizations, the private sector, governments and
development sector for greater efficiency against corruption.
o
Mr. Hagan and Mr. Tafara commented that civil society organizations often happen
to be the most efficient and reliable whistle-blower.
o
Mr. Bhatia added that corruption needed to be addressed in major policy meetings
such as the G7 or G20.
The politicization of corruption
Corruption is a highly political topic and Mr. Hagan noted that in most cases, new
governments retrospectively prosecute their predecessors. A sign of progress would be
prosecution of fellow government members in known cases of corruption.
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Sub-Saharan Africa: growth prospects
and challenges for the next decade
Moderator
Hon. Ana Gomes,
Member of the European Parliament
Speakers
Makhtar Diop,
Vice-President, Africa Region, World Bank Group
Abebe Selassie,
Director, African Department, IMF
Mr.
Makhtar Diop
announced that, despite an overall trend of growth in Africa, the GDP per capita
rate in the continent was, for the first time, negative when compared to the GDP rate. The
co ti e t’s cou tries that
are dependent on commodities are the most affected because of the drop
in commodity prices and therefore need to diversify economies. He urged parliamentarians to pursue
a better allocation of resources among their populations and to push for a new social contract. The
increasing access to the internet caused a rise in aspirations, especially from the youth, making it
incumbent on political leaders to take the appropriate measures for a fairer wealth repartition and to
urgently address the issue of education. Mr. Diop also invited legislators from developed countries to
foster openness with Africa, as a source for mutual wealth both in terms of trade and labour force.
“The World Bank is here to give munitions for you, MPs, to respond to questions
from your constituencies”
Makhtar Diop, Vice-President, Africa Region, World Bank Group
Mr.
Abebe Selassie
confirmed
that last year’s
economic slowdown in Africa produced the lowest
growth rate experienced in the last twenty years. However, he pointed out disparities among
countries: most of the resource poor countries still perform well, while commodity exporters are
experiencing economic strains. According to the IMF, a 3% growth rebound can be expected for 2017
and 2018. Sub-Saharan African countries are faced with the challenge of implementing the right
policies to jump-start growth and
ake the ost of the co ti e t’s de ographic tra sitio .
Indeed,
y
, glo al gro th ill depe d o the i tegratio of Africa’s
labour force into the economy and
this challenge requires: 1) sustaining the centrality of macroeconomic stability and addressing
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balances; 2) increasing revenue mobilization to promote state capacity; and 3) making economic
diversification the litmus test for policies.
Discussion
During the discussion that followed, participants made comments related to:
The diversification of the African economy
Responding to enquiries from MPs on how they can effectively support the diversification of
their economies, Mr. Diop explained that parliamentarians can foster regional and
international trade by supporting the reduction of custom barriers within the continent and
by participating in the development of regional value chains following the Asian model for
instance. Mr. Diop and Mr. Selassie both insisted on the importance for African economies to
involve the private sector, to improve their business environment, and to set medium-term
objectives and perspectives.
Nutrition
Malnutrition has been highlighted as a curse for Africa, preventing its population from
supporting growth.
o
Mr. Diop added that technological developments will require increasing cognitive
skills that can only be acquired with scaled-up nutrition.
World Bank and IMF engagement in Africa
Both Mr. Selassie and Mr. Diop explained that, as international institutions, neither the
World Bank nor the IMF have the mandate to get involved in country political processes.
Energy
In Uganda, the Bujagali Hydroelectric Power Station has been constructed thanks to the
involvement of the private sector and development partners, including the IFC. However its
capacity is not fully exploited.
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Special Address by H.E. Kemi Adeosun
Speaker
H.E. Kemi Adeosun,
Minister of Finance, Nigeria
H.E.
Kemi Adeosun
gave a special address to the audience and stated that Africa requires urgent
infrastructure investment for the region to achieve long-term growth, energy sufficiency and
agriculture.
“he prese ted the Nigeria go er e t’s
strategy of investing in roads and addressing
the cou try’s traditio al relia ce o oil re
enue in order to support the economy, and more
specifically small and medium enterprises. This entails investing in capital, addressing imbalances as
much as possible, and mobilizing revenue to finance infrastructure projects and reimburse debt. H.E.
Adeosun cited the World Bank, the IMF and the African Development Bank as key interlocutors for
the Nigerian government. She added that illicit capital flows represent a major shortfall that requires
attention, identification, and recovery. Parliamentary cooperation in Africa would prove valuable in
that field so that illicit capital recipient countries can be held to account. Members of parliament can
take measures by implementing tighter tax and financial reporting legislation, as well as by
contributing to the successful delivery of public services, the pillar of successful economies.
“We need more collaboration amongst parliamentarians
for transparency in
Africa, and across the World to ensure that the economic
situation improves”
Discussion
During the discussion that followed, participants made comments related to:
The informal economy challenge
The necessity of collecting accurate data was raised, along with the suggestion to implement
a plan for banks to better capture the business activity of the country.
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o
H.E. Adeosun commented that a large part of the population is
unbanked
and takes
part in the informal economy. Technology can contribute to the formalization
process and therefore to a widening of the fiscal base.
Job-creation and the role of infrastructure
Investing in infrastructure can bring medium and long term results but it does not create
many jobs.
o
According to H.E. Adeosun, infrastructure is a prerequisite for job-creation. Its
absence hinders business creation and can make the country dependent on imports.
In Nigeria, the public-private YouWin initiative, offers a youth development
programme to support outstanding entrepreneur business plan and eventually
creating jobs.
Investing in human capital
Answering a question on human capital, H.E. Adeosun explained that investment in health
and education had increased in Nigeria. Because nutrition is linked to education, campaigns
have also been launched with health workers helping mothers feed their children. Improving
agriculture by producing more and better food is also an important component to ensure
food security.
Terrorism
The terrorist acts perpetrated by Boko Haram have affected the economies of Nigeria and its
neighboring countries, including Niger.
o
H.E. Adeosun specified that most of the impact caused by Boko Haram in Nigeria
involved the north eastern part of the country. Although the terrorist group remains
a threat to the region, the rebuilding process has started.
Nigeria’s
relation with the World Bank and IMF
Pro idi g ore detail o Nigeria’s
relation with the World Bank and IMF, H.E. Adeosun said
that her country was interested in working with the World Bank, namely on budget
efficiency. The country already engages with the IMF, and although it does not need an IMF
programme, the government is keen on protecting the economy from currency risks.
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Address by Speakers of Parliament
Speakers
Hon. Abdul Raouf Ibrahimi,
Speaker of Parliament, Afghanistan
Hon. Sonam Kinga,
Speaker of the National Council, Bhutan
Hon. Oscar Mauricio Lizcano Arango,
Speaker of the Senate, Colombia; Board Member of the
Parliamentary Network on the World Bank & IMF
Hon. Niki Rattle,
Speaker of Parliament, Cook Islands
Attending Speakers of Parliament were invited to take the floor and address their colleagues. Each of
the shared their i sights o their cou try’s de elop e t
challenges and opportunities. This
allowed the speakers to contribute
ith their cou try’s a d parlia e t’s story o issues such as:
the
difficulty to exploit resources and opportunities in a country subject to security threats and drug
trafficking like Afghanistan; unemployment as a great challenge, namely in Bhutan with over 9000
job seekers and a 10.7% youth unemployment rate; or the long road to implementing peace
processes akin to the one signed between the Colombian government and the FARC. Parliamentary
engagement at the regional and international level was also highlighted as a key feature for
strengthening leadership and building capacity of legislators, along with their ability to influence the
global agenda.
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IMF country engagement
Moderator
Hon. Hans Olav Syversen,
MP Norway
Speaker
Jeff Franks,
Director, IMF Office in Europe
Jeff Fra ks ga e a o er ie of the IMF’s e gage e
t with countries. The IMF has country teams
composed of a mission chief, desk economists, and resources from regional and specialised staff for
each of its members.
Based on the Article 4 of IMF country agreements, onsite
consultations
are organized (usually on an
annual basis) after preliminary studies from the headquarters. Consultations last between 10 and 12
days, during which the IMF team meets with government officials, including the Central Bank and the
Ministry of Finance. Depending on the country, meetings are also organized with members of
parliament (party groups or finance committees). Once the consultation ends, the team submits a
report to its country managing Director. Consultations can take place more often, should the
cou try’s eco o ic
situation require it.
The IMF offers special
trainings,
sometimes accessible to members of parliament. A recent example
is a training jointly organized with the Vienna institute. Online courses and MOOCs also exist and are
open to everyone
6
.
Countries can also ask the IMF for
technical assistance
when faced with challenges related to the
IMF areas of expertise.
IMF
programmes
are negotiated with governments and upon their request only. When solicited for a
programme, the IMF produces a diagnostic and identifies the nature of the problem: structural,
fiscal, imbalances, or a combination of each. Policy recommendations are then made upon the basis
of long term surveillance and the production of policy notes, before being negotiated with the
national authorities. These negotiations do not involve the Parliament although the IMF sometimes
meets informally with legislators to have their input.
Discussion
During the discussion that followed, participants made comments related to:
IMF programme negotiation
IMF recommendations often seem as imposed to the countries.
o
Mr. Franks explained that during the negotiation process, the responsibility of
consulting parliaments lies with governments, not with the IMF. Governments blame
the IMF for unpopular policies but he insisted that country ownership is key to their
success.
6
Find out more about IMF online learning
here
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In some countries, including Tunisia, the IMF is perceived as a condescending institution
when negotiating with developing countries.
o
Mr. Franks acknowledged the perception gap leading to the IMF being blamed for
many things. He insisted the IMF should be seen as a doctor prescribing a treatment,
but admitted that the treatment could seem painful. The best results are achieved
when governments and IMF work as a team.
IMF lending facilities
Depending on the country and the context, the IMF can offer different types of lending
arrangements.
o
In the case of Morocco, a two-year Precautionary and Liquidity Line arrangement
was signed with the aim of providing insurance against risks and supporting the
authorities in the implementation of reforms.
In countries where there is no functioning government to repay IMF debts, Mr. Franks
explained that the IMF asks donors for relief.
Political implications of IMF programmes
Mr. Franks confirmed that IMF programmes were a useful political tool for governments;
often times, governments use it to sell unpopular policies. Mr. Franks warned that the
success of IMF programmes requires country ownership.
Addressing short and long term priorities
The IMF focus on short term issues can be
i co pati le ith the go er e ts’ lo g ter
strategies especially in sectors such as energy.
o
Mr. Franks argued that short term challenges need to be tackled in order to be able
to address long term issues. With regards to the energy sector in Ukraine, he agreed
that over the longer term it would be desirable to have low taxes on energy, but in
the short term to pay bills revenues have to be raised. While IMF deals are short-
term oriented, there are other partners with which countries can engage for longer
term programmes, such as the World Bank or regional development banks.
Migration crisis management
With the refugee crisis, Jordan and Lebanon face difficulties to manage the flows of incoming
refugees, while maintain sustainable debt levels and ensuring public services.
o
Mr. Franks recognized that IMF assistance in Jordan proved insufficient because of
the overwhelming external shock caused by the refugee crisis. In both countries,
efforts should be made to integrate refugees, as much as possible, into the economy.
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The role of parliamentarians in tackling
the SDGs
Moderator
Charles Chauvel,
Team Leader, Inclusive Political Processes Bureau for Policy and
Programmes Support, UNDP
Speakers
Magdi Amin,
Manager, Corporate Strategy and Partnership Team, International Financial
Corporation, World Bank Group
Akaash Maharaj,
CEO, Global Organization of Parliamentarians Against Corruption (GOPAC)
Abdihamid M. Mao,
Senior Integrity Specialist, Group Integrity Office, Islamic Development
Bank
Mr.
Charles Chauvel
acknowledged the important role of Parliaments in the adoption of the SDGs,
and their relevance to Goal 16 of promoting peaceful and inclusive societies, through their
accountability functions, debating, and representativeness. However, parliaments are impeded by: a
lack of political will; insufficient resources; a lack of capacity and knowledge; gender imbalance; as
well as fragility and conflict situations. Systematic engagement from parliamentarians and experts
alike is needed to share information effectively. In this context, the UNDP partnered with the Islamic
Development Bank and GOPAC to publish a parliamentary handbook on
Parlia e t’s role i
implementing the Sustainable Development Goals
7
.
Mr.
Abdihamid M. Mao
set out the Islamic
De elop e t Ba k’s IDB isio to pro oti g
development, health, education and governance in its member countries. The IDB is invested in
capacity building and regional integration programmes. It also operates a lot on integrity, and serves
as a contact point for alleged corruption practices and a provider of recommendations. Collaborating
on the parliamentary handbook allowed the IDB to assist parliamentarians in playing an active role
for SDG delivery through sharing good practices, and discussing the application of international best
standards and the best fit for each context.
Mr.
Akaash Maharaj
presented the SDGs as the metrics by which human progress can be measured.
A major barrier towards achieving such progress is corruption, a phenomenon which already caused
the failure of the Millennium Development Goals. The impact of corruption represents $2.1 trillion in
bribes (according to World Bank data); $2.1 trillion of assets illegally moved across borders
(according to UNODC data); and $3.1 trillion lost through tax evasion (according to the Tax Justice
Network); and the amount lost annually to corruption could suffice to achieve the development
goals. The success of the SDGs will therefore depend on the effective involvement of
parliamentarians, including against corruption.
Mr.
Magdi Amin
asserted the World Ba k Group’s co
it e t to the “DGs, hile re i di g the
audience of their cost and complexity. Supported by the Addis Ababa Action Agenda, the SDGs will
require the mobilization of Overseas Development Aid (ODA), of domestic resources, as well as of
private finance. While ODA spending has remained stable, the funding needs have increased and
The parliamentary handbook on
Parlia e t’s role i i ple e ti g the Sustai able Develop e t Goals
is
available
here
7
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private investment is required to meet the gap. Parliamentarians can address this gap, foster market
competitiveness and promote private sector development by: holding their government accountable
for results; enforcing competition; increase transparency and fight corruption.
“Achieving the SDGs will
require a monumental act of
legislative will”
Akaash Maharaj, CEO, Global
Organization of Parliamentarians
against Corruption (GOPAC)
Discussion
From good intentions to actual implementation
The difficulty for MPs to commit to the actual implementation of the SDGs can partly be
explained by their term duration and re-election stakes.
Ownership of aid spending has been cited as a key element for the success of the SDGs,
including private ownership of land and assets which allows for capital and potential
investments.
Gender equality
Domestic legislation is needed for women’s empowerment and the achievement of gender
equality (Goal 5).
The MPs relation to their constituency
The link between parliamentarians and their constituency is a very powerful one and yet,
some of the
co stitue ts’ aspiratio s ca ot e et ecause e ers of parlia e t ha e
limited prerogatives.
Private sector support
Rwanda has been highlighted as a success story in terms of market creation and private
sector support.
The role of technology
Mr. Amin pointed out that technology can promote competition and provide easier access to
finance while driving down the cost of capital if well-regulated and provided there is an
alignment of both the private and public sector.
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Undertaking reform of energy subsidies
Moderator
Hon. Syed Naveed Qamar,
MP Pakistan
Speakers
Jerome Vacher,
IMF Resident Representative for Ukraine
Arunish Chawla,
Minister-Economic, Embassy of India, Washington D.C.
Hon.
Naveed Qamar
opened the conversation sharing his experience as former Minister of
Petroleum and Natural Resources of Pakistan, and his efforts to cut energy subsidies during his time
in government. Although each type of subsidy requires a specific approach, the timing remains a
crucial element for reform; the
go er e t’s
honeymoon
period is a privileged time to attempt
reforms. IMF recommendations on the topic are worthy of attention and should be studied in the
light
of each cou try’s eco o y.
IMF Resident Representative for Ukraine Mr.
Jerome Vacher
laid out the effects of subsidies on the
cou tries’
economies including their fiscal system, public spending, and resource allocation. Today,
global subsidies represent about 6.5% of the world GDP. Subsidies tend to depress private
investment and accelerate the depletion of natural resources while reinforcing inequality. Mr. Vacher
presented the case of Ukraine explaining that the energy subsidy reforms had taken over 20 years of
discussions before being carried out for the last few years and bearing fruit. He further noted the
benefits it has brought in terms of efficiency, environmental pollution reduction. He insisted that
reforms should target the most vulnerable members of the population.
Mr.
Arunish Chawla
presented the case of India and its challenging implementation of energy
subsidy reform over the past decade. While Indian oil companies were nationalized and administered
a control price mechanism in the mid 1970s, the oil prices increase during the 1990s led the
government to rethink its energy policy. By adopting differentiated strategy depending on the type
of energy targeted (e.g. oil, gas, gasoline, kerosene), the Indian example highlights the need for
persistence in political will to achieve reforms. Mr. Chawla also advised developing sound research
capacity to provide relevant feedback and judgment on the conducted reforms, as well as to adopt a
gradual approach with adequate sequencing to maintain a sustained impetus for reform.
Discussion
Privatisation as an alternative?
Privatisation was suggested as an alternative for policy makers, as it could provide a high
level of efficiency in the field of energy.
It was, however, pointed out that consumers usually appreciate having a public company to
which they can refer to. Moreover, privatization often leads to higher prices for the
co su ers. I Jorda , for i sta ce, pri ate co pa ies’ prices
are at least 20% higher than
the public sector’s.
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Making subsidy reform policies politically acceptable
The example of Morocco was shared, where an indexation system was put in place along
with subsidies conditioned to the oil barrel price. The gradual approach made the reform
politically acceptable.
To pursue successful policies, timing is key, along with providing the right compensation
mechanism (e.g. trough taxation).
Key subsidy reform components
One of the most subsidized countries in South East Asia, Malaysia is under a subsidy
rationalization’ programme. According to research studies, subsidy removal policies are
bound to fail if not accompanied by reallocations to ensure that the poorest still receive
income and that
the richest households’ pri ileges
are reduced.
The necessity of a comprehensive energy policy
Because governments only have a limited term, it is difficult to implement coherent and
efficient subsidy removal policies over time.
Energy subsidy should not be studied as an isolated policy item but rather be linked to other
issues from the energy sector; including, energy efficiency monopolies.
Green energy was highlighted as a long-term investment.
o
The IMF supports green energy policies as long as they fiscally make sense.
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Mitigating climate change
Moderator and discussant
Hon. Alfredo Molina Triana,
MP Colombia, President of the Environment Committee; GLOBE
Colombia
Speaker
Ms. Marcene Broadwater,
Global Head Climate Change, International Finance Corporation,
World Bank Group
Discussant
Hon. Martin Oyono,
MP Cameroon; GLOBE Africa
Ms.
Marcene Broadwater
underlined the role that the private sector can play, with the public sector,
in mitigating climate change; a task requiring an additional $3 trillion to be achieved. As revealed by
the IFC
Climate Investment Opportunities in Emerging Markets
Analysis
8
, the Paris agreement helped
open up $23 trillion in climate-smart investment opportunities across emerging markets, a call for
action to unlock investment and respond to the current risks making investors hesitant. Members of
parliament can help foster investment by adopting adequate policies, clarifying investment
standards, encouraging green building, and following pragmatic approaches. By using its leverage
with limited money, the public sector can unlock private capital.
Comments from the discussants
Hon.
Alfredo Molina Triana
presented the outcomes of forest governance actions in Colombia, led
with the support of GLOBE. In Colombian constitution the environment is considered as natural
capital
for the cou try’s de elop e t, a ely through its forests a d
rivers producing hydropower.
Forest governance is a part of the peace process, hence the Forest development plan and the
go er e t’s ai to co tai deforestatio
. Beyond the Colombian case, Hon. Molina Triana called
for increased inter-parliamentary cooperation to tackle the global challenge of climate change.
Hon.
Martin Oyono
shared the forest governance reform opportunities in Cameroon. Forest
governance requires the involvement of all stakeholders, including indigenous peoples and
community leaders. Through GLOBE, parliamentarians were offered to get a concrete overview of
forest governance challenges by going on the ground. Opportunities for parliamentary leadership
exist in Cameroon: while legislators have been actively
i ol ed i the go er e t’s refor for four
years, the legislative assembly has also laid down guidelines and principles for the drafting and
implementation of a forest governance legal framework.
8
Read
Climate Investment Opportunities in Emerging Markets,
An IFC Analysis
here
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Discussion
Committing to the Paris Agreement
Strong legislation is necessary to ensure an effective climate mitigation framework. The Paris
Agreement is helpful, despite the uncertainty drawn by the United States withdrawal raising
questions on how to ensure commitment.
o
Ms. Broadwater encouraged countries to take leadership for climate.
Parliamentarians can foster government collaboration.
The consequences of climate change
Climate change and deforestation affect economic sectors which can provide jobs to the
young, as illustrated with cocoa production in Cameroon.
Some countries, such as Malawi, are more affected by climate change than others and would
welcome assistance from the World Bank, the IMF and GLOBE to tackle mitigation.
Biodiversity conservation is a global priority since 40% of the world economy depends on
nature. Research, education, applying the
polluter pays
principle and strengthening
legislation are possible solutions, yet conditioned by the involvement of all parties.
Changing behavior
The difficulty of cha gi g citize s’ eha ior,
in spite of adopting appropriate policies and
measures, was raised.
Ms. Broadwater insisted on the need to explain the importance of climate mitigation for future
generations.
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The week ahead: the Spring Meetings
policy agenda
Speakers
Jill Wilkins,
Director, Global Engagement, External Affairs, World Bank Group
Sabina Bhatia,
Assistant Director, Communications Department, IMF
Ms.
Jill Wilkins
explained that the World Bank and IMF Spring Meetings aim at moving priority policy
agenda items forward. The World Bank has given focus on three main issues for the event: 1)
accelerating growth and private sector engagement; 2) investing in people and human capital; and 3)
building resilience to shocks. Thematic issues including aligning initiatives for climate change
mitigation and approaches to development finance are also given attention during the event. The
Spring Meetings bring together a large range of stakeholders, from civil society - with a dedicated
Civil Society Policy Forum -, governments, other development partners, to members of parliament.
Ms.
Sabina Bhatia
presented the IMF activities, which comprise lending but also analytical and
multilateral surveillance work through the publication of reports. These revealed that although the
world economy is gaining momentum, short-term risks and structural challenges remain. The IMF
thus recommends a three-pronged approach (fiscal, monetary, structural), promoting inclusive
growth, and further international cooperation to maintain this momentum. The IMF can support
efforts for recovery by providing macroeconomic policy advice, identifying fiscal space and reforms,
providing assessments and review experiences, and making member-tailored recommendations.
Discussion
Corruption
More information was provided about the IMF work on corruption: the institution provides
technical assistance for anti-money laundering and by combating the financing of terrorism,
thanks to its experts on illicit financial flows.
Inclusive growth and inequality
The persistence of income inequality at both the national and international level has been
pointed out.
o
Ms. Wilkins explained that this was the reason the World Bank was looking at the
root causes of inequality, including through a country specific approach and looking
at trade in order to improve developing countries value addition.
IMF country programmes and action capacity
IMF programmes are often designed to respond to short-term issues and are not always
efficient, especially in the case of Jordan where the debt increased and the situation
worsened despite the programme.
o
Ms. Bhatia highlighted the exceptional crisis situation of Jordan, an element that is
being incorporated into the IMF approach by reducing the burden of adjustment for
the poor and more timely safety nets for taxation measures.
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The IMF capacity to resist a financial shock, similar to the 2008 crisis was questioned.
o
Ms. Bhatia explained that the IMF members were the ones to decide on the
i stitutio ’s size a d resources.
International Development Association (IDA)
More regular updates on the implementation of IDA was requested from MPs who only
receive information every three years, at the time of the
Fu d’s
replenishment.
o
The World Bank does gather regular information on the projects financed by IDA and
committed to communicating more on that to the parliamentarians.
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Investing in human capital and early
childhood development
Speakers
Hannah Bowen,
Director, ACTION Secretariat
Meera Shekar,
Global Lead for Nutrition, World Bank Group
Discussants
Hon. Dissan Gnoumou,
MP Burkina Faso
Hon. Pam Damoff,
MP Canada
Ms.
Hannah Bowen
presented ACTION, a network of global health advocates which aims at bringing
the voice of civil society into health policies and supporting policy makers in the drafting of legislation
and policy implementation. Underlining that nutrition is responsible for half of the under 5 year-old
children death toll, Ms. Bowen presented stunting as an indicator for development which needs to
be reduced.
Early childhood development is linked to investment in early years, explained Ms.
Meera Shekar.
During the first 1000 days, children are prevented from reaching their full potential when they lack
good nutrition, stimulation, learning opportunities, nurturing and protection. Early childhood
development is a critical topic for the World Bank because the upcoming digital revolution will
require new generations to develop new sets of skills. Pre-school education represents another pillar:
children who do not attend it suffer from a learning gap. To this date, 156 million children under 5
years old are stunted worldwide, calling policy makers to join forces against under-nutrition, to
promote early stimulation and learning, to protect the vulnerable and to foster women’s education,
promote reproductive health, improve water and sanitation, and to provide quality affordable food.
Comments from the discussants
Hon.
Dissan Gnoumou
(MP Burkina Faso) presented the successful example
of his parlia e t’s
network on food security. Thanks to such network, members of parliament were able to advocate
and obtain a dedicated budget line for nutrition. He insisted that nutrition should not be considered
as a public health related issue only, but as a development challenge for the generations expecting to
support sustainable growth.
Hon.
Pam Damoff
(MP Canada) shared her experience in supporting initiatives against stunting
around the world. Members of parliament can help through very simple interventions such as
supporting or sponsoring actions led by civil society to educate young women around the world on
reproductive health, pregnancy and children care. She reminded the participants that fighting
stunting is an investment.
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Discussion
Maternal health
The importance of improving maternal health and breastfeeding practices was raised as an
important element for development partners to focus on.
Nutrition and conflict
Stunting and malnutrition become an even more critical issue when in situation of conflict,
especially for displaced population.
The impact of network and group actions
Other parliamentarians have shared examples of focus groups for early childhood
development, including the UK Parliament All Party Parliamentary Group for Conception to
Age 2-The First 1001 Days which approach also includes mental health.
Scaling-Up Nutrition, a network counting over 50 member countries, has also been cited as
important advocate pushing for government commitments. However, there is still work to be
done to ensure that political declarations are translated into action.
o
The World Bank asserted that investments were either forthcoming or already in
place in most of the aforementioned countries and that it also provided financial
facility covering reproductive health issues.
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Conclusion
The 2017 Global Parliamentary Conference two-day programme delivered suggestions on
how to
i prove the parlia e taria s’
role in defining and implementing successful development policies,
a set of recommendations for
enhanced cooperation between parliaments and international
financial institutions,
and
increased knowledge
on topics of parliamentary interest.
The 2017 GPC shed light on
how parliamentarians can enhance their role in the definition and
implementation of policies
for successful development outcomes. As parliamentarians shared their
experiences and exchanged views with development experts, a few recommendations could be
drawn:
Parliamentarians should make full use of their oversight and scrutiny functions. This includes
keeping their government accountable, monitoring budget spending and being vigilant as to
the risk of corruption.
Thanks to their on-the-ground knowledge and direct link with constituents, parliamentarians
are i a pri ileged positio to stay a reast of the people’s aspiratio s. As e pectatio s are
rising, it is important that these are met in order to avoid frustration and possible situations
of fragility, conflict and migration. Members of Parliament can serve as a bridge between
citize s a d the go er e ts, e press the people’s aspiratio s a d help ide tify solutio s
and opportunities to meet these.
Corruption has been unanimously highlighted as a crucial issue for legislators, who have the
power to shape efficient legal frameworks against corruption, as well as transparency,
disclosure, and protection for officials and whistle-blowers. Tackling the issue of corruption
and enhancing transparency would result in positive economic outcomes and allow the gain
of public confidence.
Members of Parliament were encouraged to take advantage of networks at the national and
global scale. At the country level, examples from networks Burkina Faso, Colombia and
Cameroon were showcased and demonstrated that parliamentarians could advocate and
obtain greater outcomes on issues if they acted collectively - whether it be to obtain
dedicated budget lines for nutrition or to ensure forest governance. The value of the
Parliamentary Network was similarly emphasized as it represents a unique platform for
parliamentarians to hold international financial institutions accountable by facilitating
engagement between the two stakeholders at the global level and at the country level.
The conference also served as a reminder of the
importance for financial institutions and
parliamentarians to cooperate.
In times of global uncertainty, international organizations like the
World Bank and the IMF are indeed vital to address challenges. Both of them operate in many
countries of the world through programmes and projects, and provide expertise and information on
how to best achieve development results. Members of Parliament were encouraged to take an active
part within the Parliamentary Network on the World Bank & IMF which constitutes a privileged
platform for parliamentarians to make their voice heard by international financial institutions.
Feed ack fro parlia e taria s to the World Ba k a d IMF also represe ts citize ’s oices hich
can further be integrated in the World Bank and IMF future operations. Legislators were, moreover,
invited to engage with IMF and World Bank country offices, whose representatives can be invited
before parliamentary committees if needed. Finally, the conference highlighted the value of
knowledge produced by both the World Bank and IMF - reports and data can be used as reference by
parliaments.
Knowledge-building
is a fundamental step to design and implement transformational development
policies hence the important added-value of the 2017 edition of the GPC which allowed
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parliamentarians to exchange and learn directly from experts and top management representatives
of the World Bank and IMF, as well as to share their experiences with their peers. The conference
served as a platform to discuss key development issues including: the link between inequality, job-
creation and growth; steps towards more inclusive institutions and parliaments; the necessity to fight
corruption and measures that can be taken within government and the private sector; perspectives
for growth and challenges in the sub-Saharan African region; the role that parliamentarians can play
for the implementation of the SDGs; examples of climate change mitigation namely through forest
governance; as well the merits of investing in human capital and early childhood development.
The most up-to-date data from the World Bank, the IMF, and partner organizations were then
presented and participants can also refer to policy documents and reports for their legislative work.
The conference was also the occasion for the Parliamentary Network to hold a General Assembly and
elect a new board, composed of five new members and five re-elected ones and among which each
region of the world is represented.
The 2017 GPC participants, along with the newly-elected Parliamentary Network Board of Directors,
expressed their commitment to these outcomes. Applied collectively, such recommendations can
help parliamentarians maximize their impact on the development process and enable them to
achieve actionable policies on the ground. The upcoming Parliamentary Network meeting, the
Parliamentary Workshop at the 2017 World Bank and Annual Meetings, will provide another
occasion for interested members of parliament to extend the debate on some of the topics covered.
36
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List of resources by topic
Annex 1
Fighting inequality through job-creation & growth
The IMF’s Wo k o I e uality: B idgi g Resea h a d Reality,
P. Loungani, J.D. Ostry, 22 February
2017 (blog): available in
English,
in
يبرع
(Arabic),
中文
(Chinese),
Français
(French), and
Español
(Spanish).
International Jobs Report: Edition 2017,
P. Loungani, 3 July 2017, OCP Policy Center: available in
English
Youth Job Creation Policy Primer: A systems approach to achieving full employment for all young
women and men by 2030,
Peace Child International, The Parliamentary Network on the World Bank
& IMF, April 2017 : available in
English
Special session with the leadership of the IMF and the World Bank
Group
Building a More Resilient and Inclusive Global Economy,
a speech by Christine Lagarde, Managing
Director, IMF; 12 April 2017 (as
prepared for delivery):
available in
English
Rethinking Development Finance,
a speech by World Bank Group President Jim Yong Kim, 11 April
2017
(as prepared for delivery):
available in
English, Español, Français,
ةيبرعلا,
Русск
,
中文
Building inclusive institutions and parliaments
World Development Report 2017:
Governance and the Law,
World Bank Group. Full report available
in
English;
main messages available:
English, Español, Français,
Русск
,
Português,
中文,
يبرع
Lobbying in Europe: Hidden Influence, Privileged Access,
Transparency International, April 2016;
available in
English.
Tackling corruption in government and the private sector
Annual Update - Fiscal Year 2016,
Integrity Vice-Presidency, World Bank Group; available in
English.
Corruption: Costs and Mitigating Strategies,
IMF, May 2016; available in
English.
Sub-Saharan Africa: growth prospects and challenges for the next
decade
Regional Economic Outlook: Restarting the Growth Engine,
IMF, May 2017; available in
English.
Af i a’s Cities: Ope i g Doo s to the Wo ld,
World Bank Group,
February 2017; full report available
in
English;
overview available in
English, Français, Português.
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List of resources by topic
The role of parliamentarians in tackling the SDGs
Annex 1
Parliament’s
ole i i ple e ti g the Sustai a le Develop e t Goals, A Pa lia e ta y Ha d ook,
UNDP, GOPAC, IDB, 2017; available in
English.
Atlas of Sustainable Development Goals 2017: From World Development Indicators,
World Bank
Group, April 2017; available in
English.
Undertaking reform of energy subsidies
Getting Energy Prices Right: From Principle to Practice,
IMF, July 2014; available in
English.
Mitigating climate change
Shock Waves: Managing the Impacts of Climate Change on Poverty,
World Bank Group, 2016; full
publication available in
English;
overview available in
English.
Investing in human capital and early childhood development
Promising Approaches in Early Childhood Development,
World Bank Group, March 2017; available in
English.
Smarter Education Systems for Brighter Futures,
World Bank Group Education Global Practice, 2016;
available in
English.
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Meet the new Parliamentary Network Board members
Annex 2
Hon. Jeremy Lefroy, MP United Kingdom
Jeremy Lefroy is a British Conservative Party
Member of Parliament. Since his election in
2010, he has served on the International
Development Committee. In 2015, he was also
appoi ted to the UK Parlia e t’s Joi t Hu a
Rights Committee. After ten years in Tanzania
working in the coffee industry, he returned to
the UK and established business marketing
coffee and organic cocoa from smallholder
farmers. He co-founded Equity for Africa, a
social investment business which supports
entrepreneurs in creating sustainable jobs by
lease funding for small businesses. He also
established Stafford Works, a charity which
promotes apprenticeships, job creation and
entrepreneurship in his own parliamentary
constituency. In the course of his duties as
Chair of the Parliamentary Network on the
World Bank & IMF, Jeremy Lefroy contributed
to the 18th Replenishment of IDA, a World
Bank fund for the poorest countries, for which
he advocated both with members of the
Network and with the British parliament.
interest
are
development,
electoral
observation and international justice. Alain
Destexhe joined the Parliamentary Network
on the World Bank & IMF in 2000, chaired its
twelve-member Board from December 2010
until June 2013. He is also the chairperson of
the Committee on Legal Affairs and Human
Rights of the Parliamentary Assembly of the
Council of Europe since 2016.
Hon. Olfa Soukri Cherif, MP Tunisia
Hon. Soukri Cherif is a Member of Parliament
for Tunisia and Member of the Committee on
Finance. She is also a member of the Steering
Committee of the Global Parliamentarians
Forum for Evaluation as well as a member of
the French National Council for Development
and International Solidarity (CNDSI) as a
foreign political leader. Before taking on her
parliamentary duties, she was assisting
teacher in Economics at the Institut Supérieur
de Sciences Humaines in Tunis, and assistant
in Mathematics and Statistics at the University
of Paris Panthéon-Sorbonne, where she also
studied. She was a consultant for the OECD
and an AISEC Alumni President. Hon. Soukri
Cherif graduated with an MBA in Trade Policy
from Harvard University.
Hon. Alain Destexhe, Senator Belgium
Alain Destexhe has been a member of the
Belgian Parliament since 1995. He is a former
Secretary General of Médecins Sans Frontières
(MSF), former President of the International
Crisis Group (ICG) and former President of
Parliamentarians for Global Action (PGA).
After graduating from the Liège University
Medical School, he obtained a diploma in
International Affairs from the Paris Institute of
Political Studies (IEP) and a certificate in
management
from
the
INSEAD
in
Fontainebleau. As medical doctor and
Secretary General of MSF, Alain Destexhe was
involved in major humanitarian crises in the
80s and 90s, notably in Central America,
Ethiopia, the Gulf, Bosnia-Herzegovina,
Rwanda and Somalia. He then worked with
the Crisis Group on peace-building measures
in the Balkans and led the PGA campaign to
ratify the Rome Treaty on the International
Criminal Court (ICC). He is the author of
several books on humanitarian issues and
international relations. His main areas of
Hon. Pauline Bekono Ebah Ndoumou, MP
Cameroon
Hon. Ndoumou has been the Quaestor of the
National Assembly since 2007, as well as a
member of the Committee on Social and
Cultural Affairs. She is also the President of
the Cameroon Chapter of the Parliamentary
Network on the World Bank & IMF Chapter.
She is the Vice President of the African
Parliamentarians Network for Climate
Community in Cameroon and the South
Regional Coordinator of the Network of
Parliamentarians
for
the
Sustainable
Management of Forest Ecosystems of Central
Africa - REPAIR.
Hon. Percy E. Downe, Senator Canada
Senator Downe was appointed to the Senate
of Canada on June 26, 2003. He is a present
member of the Senate Liberal Caucus
(Facilitator/Whip); the Senate Committee on
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Meet the new Parliamentary Network Board members
Foreign Affairs and International Trade (Vice
Chair); the Senate Committee on Internal
Economy, Budgets and Administration; the
Vice-President
of
the
Canada-Europe
Parliamentary Association; and the Chair of
the
Canada-United
Arab
Emirates
Parliamentary Friendship Group.
Annex 2
Hon. Shamsul Iskandar Mohd Akin, MP
Malaysia
Hon. Iskandar Mohd Akin is a Member of the
Malaysian Parliament and a member of the
Rights and Privileges Committee. He was
elected to federal Parliament in the 2013
election. Since then, he consistently highlights
the importance of good governance and puts
the agenda of reforming the anti-corruption
agency and laws as the top priority in his
parliamentary debate. His recent efforts in the
sphere of whistleblower protection have
gained traction from the Malaysian
government. He also currently serves at the
Executive council of the Commonwealth
Parliamentary Association, Malaysian Branch,
a d as Vice Preside t of the People’s Justice
Party, the leading opposition party in
Malaysian Federal Parliament.
Hon. Mauricio Lizcano Arango, Senator
Colombia
Oscar Mauricio Lizcano Arango graduated as a
lawyer from the Universidad del Rosario in
Bogotá, Colombia, where he stood out for his
academic excellence and leadership. He was
President of the University's Student Council,
and Vice President of AIESEC (International
Association of Students of Economics and
Social Sciences) in the year 2000. He
completed a specialization in Business
Administration and Technology at University
of Cambridge (England) and another in Public
Affairs Management at the Universidad del
Externado in Colombia, in partnership with
Georgetown University. Throughout his 15
years of experience he has served as adviser
to CORPES (the Regional Council for Economic
and Social Planning), Regional Director for
Bogota and Cundinamarca for DANSOCIAL (the
Administrative Department of Economic
Solidarity), Secretary of Transportation in
Manizales under Mayor Germán Cardona,
UNDP (United Nations Development Program)
consultant for the Minister of the Interior and
the Minister of Justice, adviser to the Minister
of Communications, and Secretary General of
IGAC (Agustin Codazzi Geographic Institute).
He taught Political Science at the Universidad
Autónoma de Manizales, where he
participated in the creation and management
of postgraduate programs and other courses.
He was elected Member of Congress for the
Party of the U for the 2006-2010 period, and
Senator of the Republic from 2010-2014. He
was reelected for the 2014-2018 period and
now serves as Speaker of the Colombian
Senate. He has promoted several important
projects, some of which have already have
been written into law. He has also worked on
financial reform, on the National Development
Plan, and the Annual Budget.
Hon. Lahcen Haddad, MP Morocco
Dr. Lahcen Haddad has been Member of
Moroccan Parliament since November 25,
2011. He has been reelected for a second
term on October 7th 2016. He has also served
as Minister of Tourism with the Government
of Morocco between 2012 and 2016. Before
joining the Government in January 2012,
Lahcen Haddad worked as international expert
in strategic studies, democracy, governance
and development, and as a certified expert in
strategic planning, monitoring and evaluation,
diversity and entrepreneurship. Dr. Lahcen
Haddad taught as a university professor for
over twenty years with institutions such as
Indiana University, Saint Thomas Aquinas
College in New York, the School of
International Training in Vermont, Mohamed
V University in Rabat and Al Akhawayn
University in Ifrane, Morocco. Dr.Haddad is
also known for being an active media expert
with knowledge of new trends in digital means
of communication and social media. Lahcen
Haddad has been elected recently as Member
of the Governing Council for SID (Society for
International Development).
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Meet the new Parliamentary Network Board members
Hon. Nathan
Uganda
Nandala-Mafabi,
MP
Annex 2
Hon. Olga Bielkova, MP Ukraine
Hon. Bielkova is a Member of Ukrainian
Parliament and Vice Chair of the Verkhovna
Rada’s Co
ittee o Fuel a d E
ergy
Complex, Nuclear Policy and Nuclear Safety.
She serves as the permanent Member of the
Ukrainian Delegation to the Parliamentary
Assembly of the OSCE and a Board Member of
the International Board of the Extractive
Industries Transparency Initiative (2016). Olga
Bielkova is a Harvard Mason Fellow, and holds
a Master of Public Administration from the
Harvard Kennedy School of Government.
Nathan Nandala-Mafabi is a Ugandan Member
of Parliament with the Forum for Democratic
Change (FDC). He is part of the Appointments
Committee. Since 2011 he is the leader of the
opposition and the Chairman of Bugisu
Corporation Union. He is also a financial
management consultant and tax consultant by
profession, and holds university diplomas
from Uganda, Kenya and the UK. He used to
work as Chairman of the Public Accounts
Committee and as Shadow Minister of
Finance,
Planning
and
Economic
Development.
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About
Annex 3
The Parliamentary Network on the World Bank & IMF
(PN) is a non-governmental organization
providing an international policy platform and informative body of knowledge sharing and research
for parliamentarians to engage with international financial institutions. The Parliamentary Network is
composed of over 1000 legislators from World Bank and IMF member countries, striving to promote
dialogue between MPs and the World Bank and IMF, civil society, academics, government and
private sector representatives. The mission of the PN is to increase transparency and accountability
in development cooperation by fostering an oversight role of Parliaments and civil society on IFIs
The World Bank
is a vital source of financial and technical assistance to developing countries
around the world. The World Bank Group comprises five institutions managed by their 189 member
countries. Established in 1944, the World Bank Group is headquartered in Washington, D.C. and has
more than 10,000 employees in more than 120 offices worldwide. The World Bank Group has
engaged systematically
with MPs since about 2000, both in borrowing countries and in donor
cou tries. Further, World Ba k’s cou try offices ha e i creasingly
included parliamentarians in
Country Partnership Frameworks Consultations. More about the World Bank and Parliamentarians
here.
The International Monetary Fund (IMF)
is an organization of 189 countries, working to foster
global monetary cooperation, secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty around the world. Created in
1945, the IMF is governed by and accountable to the 189 countries that make up its membership.
The IMF proactively
engages
ith MPs through already esta lished u rella parlia e tary
organizations, reaching out to parliamentarians on the committees that have oversight of economic
issues with the intent of ensuring the stability of the international monetary system. More about the
IMF and Parliamentarians
here.
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Contact us
Gergana IVANOVA
Coordinator
The Parliamentary Network on the World Bank & IMF
Tel +33 (0)1 40 69 30 55
Mobile +33 (0)6 42 52 92 45
[email protected]
www.parlnet.org
Nayé A. BATHILY
Lead, Parliamentary Engagement, External & Corporate Relations Vice Presidency,
World Bank Group
Mobile +1 202 247 7447
[email protected]
www.worldbank.org/parliamentarians
Glenn GOTTSELIG
Senior Communications Officer, Public Affairs Division
International Monetary Fund
Tel. +1 202 623 717
Mobile: +1 202 651 0972
[email protected]
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Parliamentary Network
66, avenue d’Iéna - 75116 Paris, France