On
Burundi, ICP
Asks French PR
About UN
Police,
"Potentially
Productive"
By Matthew
Russell Lee
UNITED
NATIONS,
February 10 --
When the UN
Security
Council met on
Burundi on
February 10,
Inner City
Press asked
French
Ambassador
Francois
Delattre about
the protection
of civilians,
and for
France's view
of the idea of
sending at
least UN
Police there.
Video
here.
Delattre
called it a
“potentially
productive
idea,” then
went into the
Security
Council's
closed door
meeting. We'll
see.
Earlier
on February 10
on Burundi at
the UN, the UN
Peacebuilding
Configuration
head stark
presentations
from the World
Bank and
International
Monetary Fund,
background
below.
When the IMF
held is
biweekly
briefing on
January 14,
Inner City
Press
submitted a
number of
questions,
leading with
Burundi and
whether the
Nkurunziza
government's
"income" from
sending troops
to Somalia and
Central
African
Republic
should be
disclosed in
the budget.
See below.
On
February 10 in
the UN
Peacebuilding
Commission,
while the IMF
still didn't
directly
address the
sleight of
hand with the
UN's
peacekeeping
funds, it
presented a
stark picture
of Burundi's
economy. It
said GDP fell
over four
percent in
2015.
The IMF
said any new
program would
depend on
relations with
the
international
community.
The
World Bank's
Bella Bird
spoke by video
from Addis
Ababa; she
said the World
Bank still has
$270 million
of projects in
Burundi, but
said the
government is
closing down,
not reaching
out.
Burundi's
Ambassador to
the UN Albert
Shingiro,
after these
critiques,
went on and on
bragging about
blocking the
proposed
MAPROBU
peacekeeper
force in
Addis,
denouncing
NGOs he left
UNnamed and false
media reports.
He continues
to block
@InnerCityPress
on Twitter.
We'll have
more on this.
Back on
January 14,
IMF
spokesperson
Gerry Rice
read out Inner
City Press'
question then
referred to
the IMF's
March 2015
sixth review,
saying the
government had
committed to
include the
income from
peacekeeping
operations in
the budget.
Rice then said
due to
deterioration
in the
security
situation, the
seventh and
eight reviews
are not
possible and
the program is
"off track."
On
January 14 the
IMF's Rice
also noted the
US Congress
having
approved quota
reform
(answering
that he was
not aware of
any new
oversight this
might
trigger), and
said that
Managing
Director
Lagarde will
hold Greece
meetings in
Davos. Rice
declined to
answer ICP's
question on
Nigeria,
saying much
has been said
on the topic;
a Trinidad and
Tobago
question
remained
outstanding as
the embargo
time expired,
but Inner City
press was
later on
January 14
told on
Trinidad and
Tobago, the
IMF's
engagement
with the
country is one
of economic
policy advice
or what we
call
surveillance.
There is no
program nor
any talk of
that, Inner
City Press was
told.
Back on
December 5,
2015, Inner
City Press
also asked the
IMF about
Burundi (and
Zambia), and
Rice said
following as
to Burundi, audio
here:
“In terms of
the outlook in
Burundi, it's
effected by
the decline in
economic
activity there
and the .
withdrawal of
donor support.
Confidence in
the economy
has been
weakened by
the political
climate and
adverse
security
developments.
The growth
rate in
Burundi, which
we had
initially
projected 5%
in 2015, is
now estimated
at minus 4.1%
in real
terms.... In
the current
environment,
completion of
the 7th and
the 8th review
under our
program there
is not
possible and
as such,
Burundi's
program with
the IMF, which
is an ECF
arrangement,
is now off
track.”
Inner
City Press had
also asked, on
Zambia, it is
reported that
the IMF
“proposed a $1
billion
facility which
the president
had turned
down. A
sticking point
for the
president was
the insistence
by the IMF
that
government
commit to
drastic
reductions in
expenditure,
particularly
on road
construction.”
What is the
IMF's
response?
Rice said that
no program has
been
“formally”
requested, but
that the
Zambian
authorities
committed to
“internal
consultations.”
Inner City
Press had
asked about
Sri Lanka, and
the same “no
formal request
yet” answer
was given. Audio
here.
Inner
City Press
also asked
about Malawi
and, lastly,
Ghana; more on
this to
follow.
On October 29,
Inner City
Press asked
IMF
spokesperson
Rice “in
Jamaica, the
National
Democratic
Movement has
blamed the IMF
for the
country's
'health-care
system
becoming a
national
disgrace.'
What is the
IMF's
response?”
Rice
during the
IMF's
embargoed
briefing read
out this
question,
audio here,
and said he
does not
agree, that
Jamaica's
2015-16 budget
includes an
increase for
the Ministry
of Health. Audio
of full answer
here.
The IMF
left
unanswered,
for now, Inner
City Press'
question about
Antigua
and Barbuda,
below; there
will be more
about Dominica.
The IMF,
it seems,
should be more
responsive:
the Gleaner
for example
opines that
“in 2014,
Jamaica paid
$138 million
more to the
IMF than it
received from
it. We are
constantly
being told
Jamaica passed
the IMF test.
Look at the
punitive
primary
surplus
imposed on
Jamaica. At
7.5%, it is
way above what
is being asked
of any other
country in the
IMF program.
It is 4% for
Cyprus, 3% for
Ireland, 3%
for Greece, 3%
for Portugal
and a puny 1%
for Ukraine.
One has to
wonder why
Jamaica is
being treated
this way.”
Here
are two other
questions
Inner City
Press
submitted on
October 29,
still without
answer:
On Antigua
& Barbuda,
in light of
recent
comments by
IMF Mission
Chief Arnold
McIntyre, what
is the IMF's
view of and
comment on the
information in
the US FBI's
charge sheet
and indictment
of Antigua's
former
ambassador
(and former UN
PGA) John
Ashe,
particularly
with regard to
corruption in
the country?
In light of
the UN Special
Rapporteur's
report on
human rights
(non)
compliance by
the World
Bank,
presented this
week at the
UN, please
summarize how
the IMF
considers the
human rights
impacts on its
decisions.
We'll
have more on
this.
Back on
July 8 when
the
International
Monetary Fund
released
reviews and
papers about
the United
States,
complete with
support of the
Dodd Frank Act
and mentions
of anti money
laundering
protection
Inner City
Press asked
about the
proposal to
raise the
definition of
Systemically
Important
Financial
Institution
from $50
billion up to
$500 billion
and if tight
AML strictures
are to blame
for cutting
off
remittances to
Somalia.
Aditya
Narain, IMF
mission chief
for the
Financial
Sector
Assessment
Program and
deputy
director,
Monetary and
Capital
Markets
department,
told Inner
City Press
that the IMF
believes such
definition
should give
predictability,
but should be
based on risk
and not
necessarily
only asset
size.
Narain
told Inner
City Press,
"On the first
one, our
general belief
is that
supervisory
approaches
should be risk
based, and
therefore the
materiality
and
proportionality
of
institutions
should be
taken into
account for to
develop
supervisory
frameworks. At
the same time,
we also
recognize that
it’s important
to have some
clear rules,
regarding a
unit, in this
case size of
institutions,
because not
only does it
set a baseline
of
expectations,
but it also
provides a
useful
framework for
people to
anchor their
expectations
on. So that’s
why, in a
sense we would
agree that
it’s important
to make these
approaches
risk based and
therefore not
dependent on
size alone. I
should add
also, that our
only political
ideology is
financial
stability, for
the purpose of
this exercise.
But
will this be
used FOR the
Senator
Richard Shelby
draft bill?
On
remittances,
Aditya Narain
said it is an
important
question but
one that the
IMF is dealing
with in other
venues; it
apparently
wasn't raised
to the US
during this
process. Why
not?
Narain
told Inner
City Press,
"On the
regulatory
question, this
is an issue
which is being
discussed in
several forums
where the IMF
has been
participating,
and this is an
issue not just
for the US,
although it
has been most
discussed in
the context of
the US, but
the effects of
the AML on
remittances
and the
result, the
stringent
adherence to
standards has
led to a
concern more
globally that
might be
affecting the
flow of
remittances to
those
jurisdictions...
where such
remittances
and the
channels
through which
they flow are
more
important. We
have not
discussed
this... there
is work
ongoing in the
Fund,
including in
collaboration
with other
institutions
like the World
Bank... and we
expect to be
able to have
more
information on
this in a few
months time."
In the
embargoed
media
conference
call, two
questions in a
row went to
the Financial
Times, which
opined that
the IMF report
takes the side
of the
Democratic
Party. The IMF
disagreed. The
IMF said, in
writing, “As
the epicenter
of the global
financial
crisis that
began in 2008,
the United
States passed
a major law in
2010, the
Dodd-Frank
Act, to reform
its financial
system.
Officials need
to complete
the rulemaking
under the law,
while parts of
reform agenda
face
legislative
proposals to
water them
down.”
, 
