Fachartikel
Reforming the Bretton Woods Institutions

Reforming the Bretton Woods Institutions

There is an urgent need of fundamental reforms of IBRD and IMF. However, before any meaningful reform can be envisaged it is necessary to enforce respect of statutory obligations by these institutions, and of statutory rights of developing member states. As long as the statutes and treaties are routinely violated – at least with tacit agreement of the G7 - when it comes to protecting the rights of the poor, proposing reforms and enshrining them in statutes or treaties remains meaningless. Both institutions have repeatedly violated their own Articles of Agreement, creating damage to their members. Thwarting its founders' intentions the IBRD has refrained from shouldering risks appropriately. This paper shows how financial accountability and professional standards comparable to private consultants can be introduced for both projects and programmes. The grave systemic moral hazard that these Institutions gain financially and institutionally from damages negligently done to their clients must be removed. One solution recommended for programmes was first proposed at the University of Zagreb in 1987.