International Financial Institutions (IFIs) sit at the heart of the global development finance architecture. The World Bank and other multilateral development banks (MDBs) are major sources of finance for developing countries and the International Monetary Fund (IMF) has a crucial function “signalling” which countries receive more funding from both official and private sources. The IFIs also have become advocates of controversial economic policies in developing countries. These roles yield incredible power for the two institutions which have spread their wings well beyond their original mandates. The governance of the Bank and the Fund is severely skewed towards rich countries which dominate decision-making in these institutions.
Together with the IFIs, bilateral donors, the Organisation for Economic Cooperation and Development (OECD) and, increasingly, bilateral development finance institutions (DFIs), are instrumental in shaping the ways in which development finance flows North to South, and in the mechanisms that could potentially prevent South to North reverse financial flows.
Eurodad works to secure a new and fair international financial architecture where developing countries have a stronger voice and representation to shape up international financial policies, enabling them to decide their own development pathways.