1. Compliance Advisor/Ombudsman (CAO)
Meg
WORLD BANK GROUP ANNUAL MEETINGS 2008
Compliance Advisor/Ombudsman (CAO)
Thursday October 9, AM, MC C1-200

2. Our approach
Distribution of project risks and benefits underlie many concerns/ complaints to the CAO
Potential for IFC/MIGA to pay more attention to local development impacts to enhance project outcomes
The role of a financial institution presents opportunities and limitations
The approach we have taken in this report is focused on the role that IFC and MIGA play as development oriented actors in the private sector. As financiers, rather than as operators, there are both opportunities and constraints to what IFC and MIGA can do. Ultimately, IFC and MIGA have impacts through their clients – Sponsors. Host communities play a critical role in taking advantage of opportunities but also in facing some of the negative impacts of development projects.
What we have seen, during our experience with complex projects, is that there is real value in encouraging greater attention to project level development impacts. We also understand that there are some obstacles. But we think that there are sensible ways to overcome these obstacles and get at the value.

3. 1. What does local development impact mean to you?
When we talk about ‘development impact’ what does that mean?
Many different perspectives
It depends who you ask
The answer differs according the to the stakeholder

4. What does development impact mean…
…For workers, families, suppliers, business owners, customers:
Employment
Supply chain/procurement
Community development funds
Local capital (e.g. infrastructure, health, training)
But lets come back to the opening question: what does development impact mean? In broad terms, labour opportunities and employment; providing goods and services through the supply chain and procurement; being able to take advantage of community development funds to improve social capital; and to build infrastructure, health and skills.

5. 2. What are the opportunities?
Can people give us some real examples where they have seen development impacts? What did these look like? What is the value of paying attention to development impacts though monitoring or developing indicators for them? What’s the opportunity, value and rationale for focusing on development impact?
We have some ideas and examples in our back pocket.table 1.1,-1.3

6. Opportunities Build strong corporate-community relationships
Create benefits = reduce conflict
Shared value

7. 3. What are the obstacles?

8. Obstacles
Confidentiality of business-related information
Flexibility and managing expectations
IFC/MIGA v. client reporting

9. 4. What are the opportunities for implementing local DI reporting at IFC/MIGA?

10. Our recommendations Help companies engage with communities
e.g. guidance on indicators & processes
Improve reporting around significant impact projects
Integrate E&S impact assessment with economic analysis
Address DI in strategy & staff/management incentives

11. 5. Next steps How can we encourage implementation of these recommendations?