How Financial Intermediaries Obscure Accountability
In this month's edition of the Console Newsletter, Research Associate Lama Almoayed sheds light on the accountability gap caused by the flow of development finance through financial intermediaries, such as national and regional banks, without proper safeguards. Drawing on community complaints regarding problematic World Bank projects in Kenya and Guatemala, this article examines the transparency and accountability challenges that arise when development banks use financial intermediaries, and considers whether these challenges are covered in the IFC’s draft remedial approach.
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Research: Out of sight, out of mind: How financial intermediaries obscure accountability for community harm
By Lama Almoayed — May 1, 2023
Various transparency and accountability challenges arise when development finance institutions use financial intermediaries, such as national and regional banks, without proper safeguards. We examine whether the IFC’s draft remedial approach addresses these challenges by exploring complaints from communities regarding problematic projects in Kenya and Guatemala.