Groups seek stronger World Bank investment standards to protect poor

Organizations from different Asian countries demanded that multilateral agencies place additional and stronger safety provisions in their investment standards to ensure that poor communities do not become more vulnerable due to 'aggressive' development projects. The call came in the heels of a scheduled review process of the International Finance Corp. (IFC) — the World Bank's (WB) investment arm — to revise its performance standards in its investments in private sector lending in developing countries in Manila. “IFC must strengthen its environmental and social standards in its lending, especially since it invests in risky business, such as extractives, energy and infrastructure," the Bank Information Center (BIC) said in a statement. A watchdog of international finance institutions (IFIs), the BIC undertakes critique and analysis on World Bank policies and projects. In cases where these large development projects are implemented, “historical evidence show that poor communities bear the impacts" of these projects, Norly Grace Mercado, the BIC’s Regional Coordinator said in the same statement. “It is important for IFC to ensure that its investments are not displacing indigenous peoples and that free, prior and informed consent (FPIC) are genuinely done with affected communities," said Jaybee Garganera, National Coordinator of Alyansa Tigil Mina (ATM). ATM is a national alliance challenging the mining revitalization policy of the Philippine government. He added that their group is aware that IFC is planning to invest in a mining project in Surigao Norte, putting money into Mindoro Resources Limited to operate the Agata Nickel Project. “We have are working with a Mamanwa tribe that is opposing this mining project, because their ancestral domain and livelihoods are being directly threatened," he added. Garganera maintained that the Mamanwa tribe disclosed to them that consultations were not adequately undertaken, and that in fact, actual opposition to the mining project were articulated. Similarly, an Aeta leader from Zambales called for the IFC and the World Bank group to adopt the principle of free, prior and informed consent, saying that consultation and broad community support are inadequate standards to implement. Salvador “Ka Badong" Dimain, from the Maporac Aeta Organization (MAO) based in Cabangan, Zambales, aired his position that “iba ang konsultasyon sa pagpayag. Mahalaga sa aming mga katutubo na kami ay kinokunsalta, pero ang dapat kami ay pumapayag sa pagpasok ng proyekto sa mga lupaing ninuno." (Consultation is different from consent. It is important that we are consulted, but eventually, our consent must be secured before a project is implemented in our ancestral domains.) Meanwhile, an Indonesian watch-group also aired their concern on continued investment of IFC on palm-oil plantations and the MIGA on nickel mining in their respective countries. Norman Jiwan, from SAWIT-WATCH, contended that IFC must pursue a more robust implementation of environment standards, ensuring that “its investments are not contributing to climate change issues." SAWIT-WATCH is a network of NGOs in Indonesia monitoring investments in and operations of palm-oil plantations and the companies involved in these projects. Jiwan added that their group has monitored intensified and expanded investment of international finance institutions like the WB and IFC on oil-palm plantations, including investments in Africa, Latin America, and member-nations of the Association of Southeast Asian Nations (ASEAN), including Indonesia and the Philippines. He maintained that in at least one case that they handled, the IFC’s client was submitting inaccurate reports about their palm-oil project, and that the IFC was not able to validate these reports at the ground. Similarly, community representatives from Cambodia shared their reaction to the IFC review process. A Sisah Man, from the NGO Forum in Cambodia, expressed their sentiment that they are looking forward for IFC to provide better and stronger standards in their policies in order to ensure that human rights, social and environmental concerns in its investments are adequately addressed. An international green alliance called for the WB and IFC to behave more responsibly with their investments. Given the documented impacts of investments to people, the environment, their land and resources, “the World Bank Group and the IFC must guarantee upholding human rights, environmental integrity and justice, and the constructive and strict implementation of transparency, accountability and compliance mechanisms," Mae Ocampo, Friends of the Earth Asia-Pacific Coordinator, said. FOE is a global federation of 77 grassroots organizations working on environment and human rights. Manila-based regional advocacy group, NGO Forum on the ADB added its voice. “It will be of the utmost important for the IFC to ensure that this review of Policy and Perfomance Standard leads towards an upwards harmonization with the best and most robust practice of other financial institutions," said Tea Soentoro. She put forward specific policies and practices recently adopted by the Asian Development Bank (ADB) including: 1) 120 days disclosure requirements for project and subprojects likely to have significant impacts; 2) requirement for environmental assessments of all components for all projects regardless of funding sources; 3) new rules for Financial Intermediaries; new language pertaining to gender; and 4) a commitments to “no policy dilution." In order to sincerely pursue sustainable development, the groups insisted that IFC must pull out its investments that exacerbate climate change, especially plantations and extractives. In this era where volatile climate negotiations are happening frantically at the international level, “the IFC must play a key role in making investment decisions that are compliant with genuine sustainable development principles — community consent, participation, transparency and accountability," the groups said. - RJAB Jr., GMANews.TV