1 / 19

Tom Griffiths Forest Peoples Programme

Making the Grade: a survey of IFI social policies and the policies of the European Investment Bank (EIB). Tom Griffiths Forest Peoples Programme. Rights to Complain: IFIs and accountability – on the way to accountability and appeals mechanisms for the European Investment Bank

Download Presentation

Tom Griffiths Forest Peoples Programme

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Making the Grade: a survey of IFI social policies and the policies of the European Investment Bank (EIB) Tom Griffiths Forest Peoples Programme Rights to Complain: IFIs and accountability – on the way to accountability and appeals mechanisms for the European Investment Bank Brussels, November 30th, 2006

  2. Objectives: • To assess existing range of IFI policies and related international standards on social development and social safeguard issues • To compare these with EIB policies • To make recommendations for strengthened EIB social standards and improved public accountability

  3. Scope of survey • Overview of social safeguard policies of WB, IFC, IADB, AfDB, ADB = not exhaustive • Best practice standards, including World Commission on Dams and EIR • Relevant standards in EU regulations, external policies and intergovernmental commitments = not exhaustive

  4. Why operational standards ? • Establish incentives to IFI staff and managers address social and environmental issues • Provide external accountability of the IFI to local communities and citizens • Constitute an agreed basis for negotiating loans or contracts with borrowers and clients • Establish a yardstick for project monitoring and evaluation • Improve overall development quality

  5. Effective operational standards: • Preconditions that must be complied with before the IFI will support a project • Procedural and substantive operational rules binding on IFI staff and managers • Implemented by well-resourced transparent management /compliance system (public procedures) • Commitments and safeguards covenanted in loan or grant agreements • Linked to independent IFI appeals and accountability mechanisms

  6. Existing IFI policies: • Address specific social issues (previous slide) • Establish objective and obligatory operational requirements on IFI staff, borrowers and clients… (with explanatory definitions) • Set benchmarks for project approval • Integrated with project management, procedures and oversight • Complemented by Implementation Guidelines • Tied to accountability mechanisms • Starting to reference standards to international law • Still lack policies on key issues like human rights

  7. WB IBRD/IDA Policy on IPs • “The Bank provides project financing only where free, prior, and informed consultation results in broad community support to the project by the affected Indigenous Peoples” [para. 1. OP 4.10] • “The Bank does not proceed further with project processing if it is unable to ascertain that such support exists” [OP 4.10, para 11]

  8. OP 4.10 • “Free, prior, and informed consultation with the affected Indigenous Peoples’ communities” refers to a culturally appropriate and collective decision-making process subsequent to meaningful and good faith consultation and informed participation regarding the preparation and implementation of the project…” (fn 4, OP)

  9. IFC PS1: Social and Environmental Assessment and Management Systems “Where the client identifies specific mitigation measures and actions necessary for the project to comply with applicable laws and regulations and to meet the requirements of Performance Standards 1 through 8, the client will prepare an Action Plan.” (PS1: para 16)

  10. IFC Environmental and Social Review Procedures (ESRP, 2006) Includes (inter alia) during the appraisal stage of the IFC project cycle: • Review of the Project Assessment Information and Action Plan and identification of gaps… • Review of client’s ESMS and identification of gaps… • Identification of any Supplemental Actions to be incorporated in the client’s Action Plan to address any gaps identified above…

  11. EIB existing social policies • The Social Assessment of Projects outside the European Union: the approach of the EIB, 02 October, 2006 • Development Impact Assessment Framework for Investment Facility Projects, April 2005 • Public Disclosure Policy: principles, rules, and procedures, 28 March 2006 • Statement on Corporate Social Responsibility, 2005 • + Various guidelines and codes of conduct

  12. EIB Documents consulted • The Social Assessment of Projects Outside the EU: the approach of the EIB, October, 2006 • Development Impact Assessment Framework for Investment Facility Projects, April 2005 • Public Disclosure Policy, March 2006 • Statement on Corporate Social Responsibility • Corporate Responsibility Report 2005 • Corporate Operational Plan 2006-2008 • The Project Cycle at the European Investment Bank (2001) • EIB project eligibility and appraisal criteria • Charter for Internal Audit,October 2001

  13. EIB Social policies • Few in number and few operational standards • Rightly base standards on international norms, regulations and best practice • General principle-based statements on EIB commitments • Vague on required standards for lending in non-EU countries • Not backed up by associated compliance and independent complaints and appeals mechanisms

  14. EIB Social Assessment Policy, 2006 “…Attention focuses on the potential impacts…on population movements and resettlement, and on vulnerable groups…Attention is given to establishing acceptable labour standards, ensuring the health and safety of the workforce and of the surrounding communities…”

  15. Conclusions • The EIB is rightly committed to ensuring its policies and practice are consistent with international standards and best practice • EU and European governments already committed to most international social standards • However, objective operational social standards to which the EIB may be held accountable in its project finance outside the EU remain unclear or entirely absent

  16. Recommendations (1) • Adopt binding and specific policies to operationalise its social standards consistent with international standards and best practice, including those of the WCD and EIR. • As a very minimum, EIB policies should be at least equivalent to the World Bank’s IFC standards.

  17. Recommendations (2) • Establish effective internal oversight, quality control and compliance mechanisms (with problem solving remit?) • Establish an external independent complaints and appeals office (outside the EIB) • And/or strengthen existing external mechanisms, to investigate violations of social and environmental standards and grievances of non-EU communities affected by EIB projects • Undertake these measures to strengthen EIB accountability in full consultation with civil society

  18. Thank You

More Related