2006/09/19

Social Watch Report 2006 Launch in Singapore at the Annual Meetings of the IMF and the World Bank

Social Watch

The Social Watch Annual Report “Impossible Architecture” was launched on September 19th in Singapore. The Annual Report monitors governments’ public policy to determine their degree of compliance with commitments and treaties to eradicate poverty and achieve gender equity that they have signed.

Those participating in the presentation were Roberto Bissio (Uruguay) of the Social Watch International Secretariat, Martin Khor (Malasya) of the Third World Network, Sony Kapoor (UK) of Christian Aid, and Iara Pietricovsky (Brazil) of the Institute for Social and Economic Studies. The presentation was attended by representatives of non-governmental organizations, governments and the media.

The launch was marked by deep criticism of the international governance system and emphasized the urgent need for changes in the international finance structure to ensure that commitments taken on by countries are effectively fulfilled.

In this context, Bissio explained that, according to the Report, with the current system it will not be possible to realize any of the proposals for effective action to combat poverty and improve gender equity and other indicators. From the same perspective, Khor and Kapoor emphasized the unequal nature of voting systems in international financial institutions that produce undesirable results. Finally, Pietricovsky addressed the role of Nation States and the anti-democratic characteristics of the new logic within which governments and international institutions are operating.

Among other important issues covered by Social Watch representatives at the Annual Report launch was support for a multilateral system provided that it is based on a new logic and an equitable distribution of power between countries. There was unanimous criticism of the new vote distribution system adopted by the IMF that guarantees to México, China and other countries a modification in their IMF quotas. In fact, this alteration, announced as a historically significant change, does not alter the power structure that determines the relationship between countries within this financial institution. On the contrary, it is a way of re-legitimising an institution that is becoming meaningless and is looking for ways to continue its existence.