International Financial Institutions

World Bank Group Established in 1946 by the Bretton Woods Agreement Dominated by largest donor countries – US, EU states, Japan Loans –IBRD (International Bank for Reconstruction and Development) –IDA (International Development Association) Assistance for restructuring and development -Infrastructure -Structural adjustment lending -Education, agriculture, environment, etc.

What Prompted Environmental Reforms at the WB? Advocacy Pressure US Concern and support by other donors Bank Staff Bank leadership

Role of Advocacy Pressure Polonoroeste Project, Brazil Sardar Sarovar Dam, Narmada River, India –

Aspects of WB Reform Environmental Assessments Public Information Independent Inspection Panel Vice Presidency for Environment and Socially Sustainable Development Environment Department Consider different types of capital Reduced share of environmental damaging projects; increase in environmental projects

Source: Nielson and Tierney 2003

Is the Glass Half Full or Half Empty? Criticisms: –Not enough consideration of sustainable alternatives –Not always compliant with its own rules –Incentives for manages to produce large projects –Other?

Qinghai Poverty Alleviation Project Poverty Alleviation in Inner Mongolia and Qinghai, W, NW China, approved in 1999 Voluntary resettlement of 58,000 farmers from barren mountains to irrigated land Opposed by NGOs and Intl. Campaign for Tibet Inspection Panel found irregularities with the implementation of environmental and social assessments; & with resettlement plans China withdrew request for financing in 2000

Deepen Reform of the WB? Role of donor and recipient countries? Should the WB dictate environmentalism to poor countries?