International Financial Institutions

1
International Financial Institutions
2
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.

3
(No Transcript)
4
What Prompted Environmental Reforms at the WB?

• Advocacy Pressure
• US Concern and support by other donors
• Bank Staff
• Bank leadership

5
Role of Advocacy Pressure

• Polonoroeste Project, Brazil
• Sardar Sarovar Dam, Narmada River, India
• 1985-1991

6
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

7

• Source Nielson and Tierney 2003

8
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?

9
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

10
Deepen Reform of the WB?

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