December 9, 2011

Re: Criticism of Environmental, Social and Human Rights Due Diligence by Export Development Canada and the U.S. Export-Import Bank.

Dear Sirs and Madams:**

We are writing to express our serious concern about the environmental and social due diligence process employed by Export Development Canada and the U.S. Export-Import Bank. The process lacks transparency, neutrality and credibility.

ECA-Watch  is an international civil society network formed in 2000 to promote enhanced transparency and accountability regarding the operations of export credit agencies.

In recent years, the UN Human Rights Council has focused attention on the important link between public financial institutions and human rights. As a consequence, there is now greater awareness that the state duty to protect human rights contemplates the operations of state institutions, including export credit agencies. Despite this clarity, export credit agencies continue to finance exports and investments that are associated with human rights abuse. More work is needed to guide state action in this area. ECA-Watch urges the Working Group to further the Human Rights Council’s initiative in this area, and welcomes the opportunity for collaboration in this regard.

Transparency and the International Economy
One of the key issues underlying the 2008 financial crisis was the lack of transparency in the international economy. Over the last several decades, a “shadow” financial structure has developed comprised of tax havens, secrecy jurisdictions, disguised corporations, shell companies and bogus foundations. This system is now so large that half of all global trade and capital movements pass through it. Since secrecy is its defining feature, the shadow economy is used for money laundering and the movement of corrupt, criminal and commercial tax- evading money across borders.  

Brussels, Tuesday 8 November

Mr. Steve Tvardik
Head, Export Credits Division
Organization for Economic Cooperation and Development
Paris, France

Dear Mr. Tvardik and members of ECG,

Thank you for the opportunity to provide comments on the review of the Revised Recommendation on Common Approaches on the Environment and Officially Supported Export Credits (Common Approaches). Please find below our comments.

Best wishes,
Deborah Lambert-Perez for ECA-Watch

To read submission, click here.

I’d like to begin by identifying several elements in the Guiding Principles that are useful to assess the current legal and policy framework in Canada regarding human rights and the overseas operations of Canadian extractive companies.

CSO concern over World Bank’s role in climate finance
The Transitional Committee for the UN’s Framework Convention for Climate Change (UNFCCC) meets this month in South Africa amid growing concern that the World Bank will play too influential a role regarding the UN’s new climate funds. The Bank’s Climate Investment Funds (CIFs) have been the focus of CSO critiques and protests. According to Eurodad, only one sixth of CIF financing will be released in the form of grants, with the largest portion disbursed as concessional loans. As noted by the World Development Movement, these loans will add to the debt burdens of the least developed countries, in violation of the “basic principle of climate justice: that rich countries should pay for the damage they have caused.”

Canadian mining interests in countries around the world are valued at tens of billions of dollars. Karyn Keenan looks at efforts by local communities to hold mining companies to account for human rights abuses. 'The issue of access to remedy for the victims of corporate abuse requires urgent attention,' she writes.
Keenan describes recent efforts by non-nationals who are affected by Canadian mining companies to seek redress through the Canadian justice system.

See full article in Pambazuka News. 

See Spanish version.

The candidates being considered for International Monetary Fund’s new boss do not inspire much hope for an institution in need of credibility. Much of the media’s focus has been on the nationality of the candidates rather than on which capabilities are needed to address the IMF’s major challenges: shifting to a more flexible policy orientation and adapting to a changed global economy.

IMF boss: heading for the right choice?
The selection of the managing director appears to be heading down the well worn path that ensures the world’s richest countries control the IMF. The Fund has made repeated commitments to governance reforms and the G20’s IMF Reform Working Group recently repeated the G20 demands for a merit based, transparent process. But, the EU and US still control more than 50% of IMF votes. In accordance with a long standing tradition, whereby a European runs the IMF and an American controls the World Bank, the US government has so far declined to advance a rival to the EU’s nominee for the position of IMF Managing Director.