A/HRC/36/40
38.
Similarly, an October 2016 briefing note by Oxfam states:
Over the past six years, the International Finance Corporation has channelled over
$50bn to the financial sector, and its long-term investments in financial
intermediaries such as commercial banks and private equity funds have dramatically
risen by 45 per cent …. However, the evidence continues to grow that … the World
Bank Group has little control over how a great deal of this money is spent. This lack
of accountability is having devastating impacts on many poor communities. 37
39.
While some progress is being achieved, as Oxfam commented at the end of the 2017
World Bank and IMF meeting, still more could be done, “we’re encouraged by the IFC’s
commitments to improve oversight and be more selective of its high-risk financial
intermediary investments. … What we’re still waiting for, and which is key, is transparency
from the IFC to show where their money is really ending up”. 38
D.
Public-private partnerships
40.
Many civil society organizations have protested the Bank’s apparent commitment to
the promotion of public-private partnerships, notwithstanding the challenges they pose to
the regulatory space of governments, especially in the fields of clean water and sanitation,
health services and education. In fact, the year 2016 was characterized by an intensified
push for megaprojects and public-private partnerships.39
41.
However, experience shows that public-private partnerships have not served
developing countries well. For example, it appears that the flagship health public-private
partnership of IFC threatens to disrupt health-care programmes in Lesotho. In 1999, the
Queen Mamohato Memorial Hospital, a new hospital run by the private sector and financed
through an IFC loan, was built to replace the old main public hospital in Lesotho. Lesotho
finds itself locked into an 18-year contract that is already consuming more than half of the
country’s health budget, while producing high returns to the private partner. 40 That
constitutes a dangerous diversion of scarce public funds from primary health-care services
in rural areas, where three quarters of the population live. Not only are health public-private
partnerships high risk and costly, they fail to advance the goal of universal and equitable
health coverage.
42.
In another case, in August 2016, the Minister of Education of Uganda announced the
closure of 63 nursery and primary schools operated by Bridge International Academies, a
private education services provider partly financed by IFC. The Minister stated that the
decision was based on “danger from poor hygiene and sanitation on the life and safety of
the innocent children”.41
43.
Similarly, in its response to the questionnaire sent by the Independent Expert, Open
Society, Armenia, observed that, despite spending more than $100 million to support the
Armenian education system, almost no systemic impact or improvement was recorded from
an education public-private partnership supported by the Bank. On the contrary, the loans
served to increase unequal access to quality education. Elsewhere in Europe, after
examining the use of public-private partnerships in Portugal, the Organization for
Economic Cooperation and Development (OECD) warned that public-private partnerships
“should be chosen only when they represent good value for money, not because they allow
the government to escape budget restrictions by building up off-balance sheet liabilities”.42
37
38
39
40
41
42
10
See www.oxfam.org/sites/www.oxfam.org/files/file_attachments/bn-ifc-owning-outcomes-031016en_0.pdf.
See www.oxfam.org/en/pressroom/reactions/no-breakthrough-big-issues-spring-meetings.
See www.brettonwoodsproject.org/2017/02/bank-imf-2016-year-review/ and
www.brettonwoodsproject.org/2017/04/world-bank-undermines-right-universal-healthcare/.
See www.oxfam.org/en/research/dangerous-diversion.
Bretton Woods Observer, Autumn 2016, p. 2. Available from www.brettonwoodsproject.org/wpcontent/uploads/2016/09/Observer_Sept_16_online.pdf.
See www.oecd-ilibrary.org/economics/oecd-economic-surveys-portugal-2012_eco_surveys-prt-2012en, p. 26.
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