World Bank Group Responds to NGO Boycott

World Bank Group Responds to NGO Boycott

Friends of the Earth International Press Release

Immediate release: Thursday 23rd December

Amsterdam (Netherlands) - After months of civil society protest, the International Finance Corporation (IFC) is reported to significantly revise its consultation process on new social and environmental standards. According to a reliable source, various demands made by non-governmental organizations on the timeline and available information will be complied with. The decision comes after a three month civil society boycott of IFC's process.

The IFC, the private sector arm of the World Bank Group, is reviewing all of its social and environmental policies as well as its technical pollution standards and information disclosure requirements. Groups from around the world decided not to participate in IFC's review in light of a lack of time, transparency and relevant background documents. IFC consultations in Brazil, Manila, London, Nairobi and Istanbul were boycotted. The absence of civil society at the consultations raised many concerns about the credibility of IFC's review. Even commercial banks and transnational corporations questioned the adequacy of the process.

A reliable source informed Friends of the Earth International that the IFC has now decided to release guidance notes and supporting materials to the public and extend the consultation process until the end of April.

"These developments are a welcome signal that the IFC took note of our concerns. The institution agrees now that policies that took years to develop cannot be discussed through a rushed process where relevant information is not available. It is curious however that these issues could only be resolved after a boycott" said Janneke Bruil. "We welcome the revision of the process. However, various concerns remain. Invitations for the consultations took place in a secretive manner and it remains unclear how any input will be processed. We hope IFC will look at these issues as well. If not, it will continue to be difficult for us to spend our time on this review."

The policies under discussion include guidelines on pollution, indigenous peoples, resettlement, cultural heritage and health. IFC's

current proposal maintains that new standards should be voluntary rather than mandatory and turns away from obligations under international law.

"The new IFC proposals are unacceptable. How can an international public institution shy away from international laws? It is crucially important

that the IFC substantially improve the quality and implementation of its standards and start to protect people instead of profits" said Longgena Ginting. "This is all the more relevant since the outcome of the review will set standards for other development banks as well as commercial banks and export credit agencies."

For more information:

IFC page on Safeguard Policy Review: http://www.ifc.org/policyreview
World wide civil society about the Safeguard Policy Review: http://www.grrr-now.org
Friends of the Earth International on the Safeguard Policy Review: http://www.foei.org/ifi/ifc.html

Contact Friends of the Earth International:

Janneke Bruil: +31 6 52 118 998, or janneke@foei.org Longgena Ginting: +31 6 188 463 65, or ginting@foei.org