1. Consultation & Participation
Export Credit Agencies and Sustainable Development: Challenges and Opportunities
Consultation & Participation
June 2006

2. General Issues of Consultation and Participation
CONCEPTS
Consultation: two-way communication process of seeking, discussing and considering the views of others, and where feasible, seeking agreement
Participation: process through which stakeholders influence or share control over setting priorities, making policy, allocating resources, ensuring access to public goods and services (partnership)
Consultation and Participation both try to influence the decision-making process of public entities. Participation implies stronger involvement of stakeholders

3. General Issues of Consultation and Participation
COMMON CHARACTERISTICS
Depend on country’s culture and experiences in public debates
Often bring conflicts which existed in latent form
Have costs for both sides
Facilitate information exchange but they do not guarantee that consensus will result in the end or that all inputs will be reflected in the final project

4. General Issues of Consultation and Participation
KNOWN BENEFITS
Consultation:
Improved communication with affected communities
Knowledge of affected communities and NGOs can contribute to the quality of environmental assessment provide a better understanding of the social/environmental impacts of projects
Participation:
More involvement of stakeholders in decision-making processes regarding project design, management and distribution of project benefits
>Superior quality of projects with support of affected communities <

5. Examples of processes in the WB Group
Making Sustainable Commitments:
An environment strategy for the World Bank
Support Strategic Environmental Assessments and other in-depth, cross-sectoral environmental analyses early in country-policy dialogues
Support increased transparency and accountability on the part of both borrowers and the World Bank by instituting regular reporting to external stakeholders, using clear benchmarks or performance indicators
Promote dialog for maintaining communication with partners including governments and civil society

6. Examples of processes in the WB Group
The World Bank Social Assessment Guidelines:
Overall objectives and prerequisites
Identify Stakeholders whose Participation is of Strategic Importance - the stakeholders will include various social groups, public and private sectors, including NGOs (Part I, Paragraph 2)
Information Strategy - this strategy will identify the key social actors and their interactions and the social provisions needed to achieve the project's specific economic, technical, and social goals (Part I, Paragraph 4)
Formulate Participation Strategy (Part III, Paragraph 1)
the participation of the poor and vulnerable groups
the participation of the broader group of stakeholders - government and NGOs, donors, and other partners

7. Examples of processes in the WB Group
The Effects of Consultation and Participation:
The WB experience
Projects are more inclusive, involving key stakeholders including traditionally marginalized
Projects are more socially sound – more benefits and fewer adverse impact
Projects are more effective and sustainable, having better institutional arrangements at the country level
Improving mutual communication between beneficiaries, government implementing agencies, and the Bank and increasing influence of stakeholders in planning and implementation
Initiation and facilitation of participation
The breadth (number of stakeholder included) and the depth (degree of control stakeholders gain over outcomes) of participation vary between initiatives and regions

8. Examples of processes in the WB Group
IFC Performance Standards on Social and Environmental Sustainability
(April 30, 2006)
PERFORMANCE STANDARD I
Taking into account relevant finding of the S&E Assessment and the result of consultation with affected communities (Paragraph 13)
Community engagement process including consultation (Paragraph 19)
Consultation required for projects with significant adverse impact on affected communities, process ensures free, prior, and informed consultation and facilitate participation of affected communities (Paragraphs 20, 21, 22)
> These standards have yet to be tested<

9. The OECD Revision of the Common Approaches
The Recommendation on Common Approach on Environment and Officially Supported Export Credits
Indicating required environmental information to the appropriate parties involved in the project, including EIA, where appropriate (Paragraph 7). Information also include:
potential environmental impacts including the impact on involuntary resettlement, indigenous peoples, and cultural property
the result of public consultation with relevant stakeholders
Exchanging views with appropriate stakeholders on a regular basis (Paragraph 17)

10. The OECD Revision of the Common Approaches
Reference to the World Bank Safeguards Policies in the existing Common Approaches
Members should benchmark project against one or more relevant environmental standards and guidelines published by the World Bank Group and against safeguard policies of the World Bank Group
(Paragraph 12.2)

11. The OECD Revision of the Common Approaches
The World Bank’s Safeguard Policies
Environmental Assessment - to identify, avoid, and mitigate the potential negative environmental impacts
Natural Habitants - the conservation of biodiversity
Pest Management - to avoid using harmful pesticides
Cultural Property - protect cultural resources
Involuntary Resettlement - to avoid it or minimize impacts
Indigenous Peoples - identify them, consult with them, ensure that they participate and benefit
Forestry - reduce deforestation
Safety Dams - design and supervise construction and implement safety measures
Projects on International Waterways - prospective borrower notifies the other riparians of the project
Projects in Disputed Areas – to ensure that there is no objection from the other claimant to the disputed area

12. The OECD Revision of the Common Approaches
Risks and constraints in the project context
Risks:
Exclusion of potential group
Creating unrealistic expectations
Conflict context
Bypassing or undermining existing institutional structures and processes
Prolonging the environmental review process and delaying projects
Tackling competition between OECD member’s ECAs and OECD non-member’s ECAs
Constraints:
Clients tend to view the Environmental Assessment as a purely technical without benefit from public involvement
Existing tendency in many countries to implement projects in a non-participatory manner