13 May 2004
Link to information on this and two subsequent Senate hearings on oversight of MDBs.
Senate Committee on Foreign Relations Hearing (May 13): "Combating Corruption in the MDBs"
The Senate Foreign Relations Committee, chaired by Republican Senator Richard Lugar, held a hearing on “Combating Corruption in the MDBs” on May 13. Witnesses included:
- Ms. Carole Brookins, US Executive Director at the World Bank
- Mr. Hector Morales, Alternate US Executive Director at the Inter-American Development Bank
- Dr. Jeffrey Winters, Associate Professor at Northwestern University
- Mr. Manish Bapna, Executive Director of the Bank Information Center
- Ms. Nancy Zucker Boswell, Managing Director of Transparency International USA
- Professor Jerome Levinson, Distinguished Lawyer in Residence at Washington College of Law at American University
The Committee has raised questions about corruption allegations in projects such as the Yacyreta Dam on the Argentina-Paraguay border and the Lesotho Highlands Water Project. According to media reports, a Committee staff member indicated that Senator Lugar “has now undertaken an ongoing review of the international financial institutions as it relates to their success in combating corruption.”
While a member country’s legislature has no direct authority over the MDBs, it can potentially instruct its representatives to the institutions to promote certain policy changes or positions, and to vote according to the legislature’s wishes. Legislatures can also condition funding to the MDBs on the achievement of certain reforms. In the past, pressure from the U.S. Congress has promoted the establishment of the World Bank’s Inspection Panel, its information disclosure policy, and environmental assessment procedures.
Civil society organizations and legislators that monitor the MDBs have raised concerns about negative economic, social, and environmental impacts of MDB policies, programs and projects. It is hoped that these hearings and ongoing oversight by the U.S. Congress and other legislatures will help build pressure on the MDBs to address some of these issues.
Legislatures from MDB donor and borrowing countries can play critical oversight roles. Increased scrutiny of the MDBs on a global level may provide an important and timely opportunity to advance accountability at these public international institutions.
Written Testimony of Manish Bapna before the United States Senate Committee on Foreign Relations, May 13, 2004 (Acrobat pdf 589 KB)
Links to statements given by all witnesses (U.S. Senate Foreign Relations Committee Web page)
Senate Banking Committee Hearing (May 19): "Congressional Oversight of the World Bank and the IMF"
Additionally, the Senate Banking Committee, chaired by Republican Senator Richard Shelby, held a hearing on "Congressional Oversight of the World Bank and the IMF" on May 19, with witnesses from the U.S. Treasury Department, Congressional Budget Office, and academics such as Allan Meltzer and C. Fred Bergsten testifying.
Links to statements given by witnesses, May 19, 2004 (Banking, Housing, Urban Affairs Committee website)
Senate Foreign Relations Committee Hearing (July 21): "Combating Multilateral Development Bank Corruption: U.S. Treasury Role and Internal Efforts"
This hearing will be held on Wednesday, July 21, at 9:30 a.m. in Senate Dirksen 419.
Links to statements given by witnesses, July 21, 2004 (Foreign Relations Committee website)
Read more on BIC's website.