The World Bank Inspection Panel and the Forest Concession Management and Control Pilot Project Global Witness

Brief History of Cambodias forest sector Early 1990s start of concession system. Early 1990s start of concession system. Several hundred thousand rural Cambodians dependent on the collection of forest products Several hundred thousand rural Cambodians dependent on the collection of forest products Destructive logging in pursuit of quick profits. Destructive logging in pursuit of quick profits. Over one million hectares of forest (10%) were lost to deforestation in 1990s. Over one million hectares of forest (10%) were lost to deforestation in 1990s. Where did the money go? Where did the money go?

The Forest Concession Management and Control Pilot Project Concessions can and will work in Cambodia! Concessions can and will work in Cambodia! But what about the total system failure? But what about the total system failure? World Bank office, Phnom Penh

The Complaint If the logging concession companies management plans, which received technical assistance from the World Bank, are accepted by the Government, and the companies start up their activities again, there will certainly be violations even more severe than before on villagers…If the companies operate, they will certainly cut resin trees again; if they dont cut resin trees they wont have any wood to cut. Letter to the World Banks Inspection Panel from villagers living in the concession areas of Cherndar Plywood, Samraong Wood, Everbright and Pheapimex. January 2005

What the Inspection Panel said … The Panel finds that in the projects focus on concessions, other aspects that were important to the Banks programme in Cambodia and to the Cambodian government were largely ignored, or at least marginalised…In particular, the project did not seem to take on the key objective of using the potential of forests to reduce poverty. World Bank Inspection Panel Report on the FCMCPP

What the Inspection Panel said continued… Six key safeguard policies contravened in planning and implementation Six key safeguard policies contravened in planning and implementation Environmental Assessment (OP 4.01), Environmental Assessment (OP 4.01), Indigenous Peoples (OD 4.20), Indigenous Peoples (OD 4.20), Forests (OP 4.36), Forests (OP 4.36), Natural Habitats (OP 4.04), Natural Habitats (OP 4.04), Cultural Property (OPN 11.03), Cultural Property (OPN 11.03), Project Supervision (OP/BP 13.05). Project Supervision (OP/BP 13.05).

What NGOs said and did… Media and advocacy work aimed at Bank Media and advocacy work aimed at Bank Cancel the debt Cancel the debt Personal accountability Personal accountability Continued engagement in Cambodian forest sector based on November 2005 letter to the Cambodian government from the Bank. Continued engagement in Cambodian forest sector based on November 2005 letter to the Cambodian government from the Bank. Review of Bank approach to forestry globally Review of Bank approach to forestry globally Re-think of anti-corruption policies Re-think of anti-corruption policies

What the Bank said and may do… Improving the management of forests, land and other natural resources is essential for the well-being of the Cambodian people and its economy, and the Bank should try to stay engaged to promote further dialogue and information disclosure to help build consensus for the future. Paul Wolfowitz, World Bank President Improving the management of forests, land and other natural resources is essential for the well-being of the Cambodian people and its economy, and the Bank should try to stay engaged to promote further dialogue and information disclosure to help build consensus for the future. Paul Wolfowitz, World Bank President

Was the Inspection Panel process a success? Inspection Panel as an independent ombudsman? Inspection Panel as an independent ombudsman? Cambodia – did anyone benefit from the process? Cambodia – did anyone benefit from the process? Elsewhere in the Bank – are the ramifications wider? Elsewhere in the Bank – are the ramifications wider?

Next Steps Monitor progress in Cambodia with forest reform. Monitor progress in Cambodia with forest reform. Continue pushing for a more comprehensive Bank anti-corruption strategy Continue pushing for a more comprehensive Bank anti-corruption strategy Continue efforts to change Bank approach to forests Continue efforts to change Bank approach to forests