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Strategic Environmental Assessment in Multilateral Financial Institutions

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Title: Strategic Environmental Assessment in Multilateral Financial Institutions


1
Strategic Environmental Assessment in
Multilateral Financial Institutions
  • Kulsum Ahmed
  • Lead Environmental Specialist, The World Bank
  • Workshop on SEA in Development Cooperation
  • Ha Long Bay, Vietnam, January 25, 2005

2
Strategic Environmental Assessment
  • Use through Safeguard/EA policies
  • Importance and evolution as an upstream tool
    beyond impact assessment recognised in
    Environment Strategies
  • World Bank Environment Strategy (2001)
  • ADB (2002)
  • IADB (2003)
  • African Development Bank (Review 1993-98)

3
World Bank Approach to SEA
  • A participatory approach for upstreaming
    environmental and social issues to influence
    policy making, development planning and
    programming, and implementation processes at the
    strategic level

4
SEA in World Bank Activities
  • SEAs in application of the safeguard policies
  • Analytical and Advisory Activities
  • Capacity Building and Training
  • SEA as a key tool in Development Policy Lending
    (from September 1, 2004)

5
Relevant World Bank Policies
  • Operational Directive 4.01 (1989)
  • EA required for all investment projects.
    Allowance made for sectoral and regional EA.
  • Operational Policy/Bank Procedures 4.01 (Revised,
    1999)
  • Sectoral adjustment loans became subject to the
    Banks EA policy the most common tool of
    analysis has been SEA.
  • Operational Policy 8.60 (Revised, 2004)
  • Takes a broader institutional approach, rather
    than a narrower impact analysis framework steps
    include determination of likely significant
    effects, analysis of borrowers systems to manage
    these effects, and description of how such gaps
    or shortcomings would be addressed. SEA and CEA
    considered important tools.

6
How does one do SEA?
  • Typically two types of administrative processes
  • Output-based extension of EIA, typically applied
    to plans and programs, many examples
  • Continuous process systematically mainstreaming
    environmental considerations into public policy
    formulation and implementation, rare
  • But details are tailor-made depending on context
    and desired output
  • Timeframe of window of opportunity?
  • Data availability?
  • Integrate into existing processes

7
Benefits of SEA
  • SEA raises commitment
  • SEA can limit mistakes
  • SEA points at better options
  • AND
  • SEA as a continuous process is a social learning
    mechanism

8
SEA to raise commitment
  • Reform of water policy in Indonesia
  • SEA response to call for greater transparency of
    government
  • SEA included extensive public participation
  • Results of SEA
  • Enhanced credibility legitimacy of reform
  • Lessened resistance of number of stakeholders

9
SEA to avoid mistakes
  • Argentina flood protection
  • Cumulative effects of individual flood protection
    projects
  • 50 projects in three river systems
  • SEA showed no coordination of cities and
    agencies in the flood plain
  • Project included component to address this lack
    of coordination

10
SEA points at better (and more) options
  • Mexico Programmatic Environment SAL
  • Energy, Tourism SEAs in Program
  • SEA process to influence decisions with respect
    to key sectoral actions
  • Different players seated at table, with Sector in
    lead Identification of wider set of alternative
    options

11
SEA as social learning mechanism
  • Colombia and Argentina WSS Sector Reforms
  • Priority setting and institutional capacity
    assessment based on rigorous analytical work
  • Pointed to need for stakeholder involvement (to
    represent most vulnerable groups and to take into
    account political economy) Forum for debate
  • Generated policy alternatives to enhance
    environmental benefits
  • Promotion of institutional change

12
Other Strategic Studies (I)
  • Outside these institutions, others often call
    them SEAs, though not thought of as such, in most
    cases, within institution
  • Country level analysis
  • Inform country level programming dialogue
  • CEAs (World Bank, ADB)
  • Environment and Competitiveness Papers of IADB

13
Other Strategic Studies (II)
  • Energy-Environment Reviews
  • Review of energy-environment in one or more
    sector in a country
  • Informal shift in thinking of these as SEAs
  • PSIA
  • Family of tools to analyze distributional impact
    of individual policy reforms
  • Emphasis on participation and focus on most
    vulnerable groups
  • Other analytical work
  • E.g. India Household Energy, Indoor Air
    Pollution and Health

14
Where are we trying to go?
  • SEA is a tool a means to an end
  • Focus on influencing outcomes, rather than on
    what it is called
  • Learn from past experiences
  • Apply lessons learnt to new pilots
  • Promote flexibility on methodological approaches,
    focus more on good principles
  • Take a sectoral approach to staff training
  • Promote capacity-building for client-led SEAs
  • Promote harmonization on critical elements of
    good practice SEA

15
More Information
  • http//www.worldbank.org/sea/
  • http//www.worldbank.org/cea/
  • http//www.countryanalyticwork.net/
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