International financial institutions, or IFIs, are financial
establishments founded and directed by more than one country. These
institutions, whether created by multiple nations or simply two
countries, are typically owned by national governments and other
prominent international institutions. Among the most well known are the
World Bank and the IMF.
The Organization of American States has been known to serve as a
discussion ground for issues regarding the need for international
financial assistance. A good example of intervention by an international
financial institutions is displayed in Resolution 822 of the Organization
of American States. The OAS Permanent Council adopted the resolution on
September 4, 2008 in hopes to decrease Haiti’s immense budged deficit by
maintaining cooperation among the United States, Haiti and international
financial institutions. In November of the same year Haiti was approved
for additional loans, which directly depended on the Haitian government’s
economic performance from then on. The success of the funding initially
provided by the International Monetary fund and World Bank will continue
to serve as a judging factor for future funding by international
financial institutions, upholding the principal that the institutions
cannot simply give away money without imperative cause or some trajectory
of reassurance.
Because the OAS is an Intergovernmental Organization, it has to maintain a delicate relationship with IFI’s so as not alienate these investors. Most times, the OAS administration gets the brunt of the blame from these IFI’s (most frequently the World Bank) when investments go wrong in one of the member states. However the flip side of the power and influence of the IFI’s is that by holding the OAS responsible, they effectively invest a new authority in the OAS to pressure member states into reforms along democratic or financial lines. Therefore, the relationship between the OAS and most IFI’s is one of collective interest and mutual dependence.
