The International Finance Coorporation–the World Bank Group’s private sector lending arm–is launching a complete revision of the environmental and social policy requirements that govern its lending operations. Civil society groups have long sought adoption, implementation, and strengthening of these “safeguard” policies given significant social and environmental harm caused by many IFC-sponsored projects.
The IFC’s safeuard policies cover a range of critical issues for civil society organizations, including environmental assessment and natural habitats, impacts on indigenous peoples, involuntary resettlement, community health, and labor standards.
Revision of the IFC’s safeguard policies is a very important process. The IFC’s safeguard policies do not just affect the obligations of the IFC and its private sector borrowers. In the past two years, more than 20 commerical banks have adopted a set of environmental and
social standards–known as the “Equator Principles”–that are based on the IFC’s safeguard policies. These banks provide over 75% of all project financing by commerical lenders around the world. So as the IFC revises its own policies, it is in effect undertaking a global standard setting exercise for environmental and social standards for privately finaced development projects.
The IFC has proposed an ambitious plan for the revision of its safeguard policies. Unlike past World Bank policy revisions–which involved review and consultations on safeguard policies one at a time–the IFC proposes to revise all its safeguard policies at once. Further, the IFC plans to quickly conduct regional multistakeholder consultations in five locations: Africa (for representatives from Africa and the Middle East), Asia, Eastern Europe and Central Asia, Latin
America, and the United States or Northern Europe. These consultations are being planned for September through December 2004.
A loose coalition of NGOs is forming to work on the IFC’s safeguard revision process. If you would like to participate in this work, or to stay informed of developments, please contact Bruce Jenkins at the Bank Information Center at [email]bjenkins@bicusa.org[/email]