Making the IMF and the world bank more accountable

Accused of being secretive, unaccountable and ineffective, both the IMF and the World Bank are seeking to become more transparent, participatory and accountable. Yet, few attempts have been made to dissect the existing structure of accountability within the International Financial Institutions (IFIs). This paper critically examines the existing accountability of the institutions and offers some recommendations for making them more accountable. It also warns that the limits of their accountability should limit the legitimacy of their activities. During the 1990s, the International Monetary Fund (IMF) and the World Bank (the Bank) found themselves accused of being secretive, unaccountable and ineffective. Not only radical non-governmental organizations (NGOs) but equally, their major shareholders are demanding that the institutions become more transparent, accountable and participatory. Accountability became the catch cry of officials, scholars and activists in discussing the reform of the institutions. However, few attempts have been made to dissect the existing structure of accountability within the International Financial Institutions (IFIs), to explain its flaws and to propose solutions and is the aim of this paper. The first section examines the structure of accountability planned by the founders of the IMF and the Bank. The second section discusses the defects in this structure. Section three analyses the recent attempts to make the institutions more accountable. The conclusion offers some recommendations for improving the institutions and a warning about the limits of accountability at the international level.