Chapter Twenty: Environmental Protection and International Finance


I. Introduction

Official Development Assistance Flows (2000) - provides data from select countries' ODA flows in 1997
II. The World Bank Group
The Bretton Woods Conference - providing a summary of the Bretton Woods Conference that established the World Bank
    A. The World Bank Group's Structure
The World Bank Group - consists of five closely associated institutions: the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID)
    B. Environmental Controversy Over the World Bank
Indonesians Battle Over Compensation for Evicted Farmers - reporting that the Indonesian government asked its supreme court to review a decision to compensate farmers who were evicted to make way for a World Bank-funded dam, the Kedung Ombo dam

Sardar Sarovar Dam Controversy - discussing the irrigation project on the Narmada River, the World Bank-funded Sardar Sarovar dam, which has been under critical scrutiny as its opponents proposed alternatives and the Indian courts conducted hearings on rehabilitation of the 200,000 people displaced by the dam

The Center for International Environmental Law (CIEL) - a nongovernmental organization that focuses extensively on International Financial Institutions generally and the World Bank specifically

    C. The Greening of the Bank

The Finance Institute for Global Sustainability (FIGS) is a global facilitator for evaluating and integrating sustainability criteria into the financial decision-making process

Environmental Assessments and National Action Plans - contains background, environment assessments, national environmental action plans and recommendations by the World Bank

    D. The World Bank Inspection Panel
The Inspection Panel of the World Bank - a three-member, non-judicial body created by the Board of Executive Directors of IBRD and IDA in 1993 to provide an independent forum to private citizens who believe that their rights or interests have been or could be directly harmed by a project financed by the Bank

Brazilian Forest People Lodge Complaint Against World Bank - reporting that a complaint was sent to the World Bank's inspection panel concerning the Rondonia Agricultural, Livestock and Forestry (PLANOFLORO) project

    E. Special Issues at the IFC and MIGA
Multilateral Investment Guarantee Agency (MIGA) - includes links on its environment and disclosure policies

The Bio-Bio River Case, Chile - provides a case background, environment aspect, conflict aspect, environment overlap conflict aspect and related information

IFC's Environmental and Social Review - charged with evaluating, appraising and monitoring the environmental and
social impacts of proposed and existing IFC projects

    F. The Multilateral Debt Problem
Strategic Action Issue Area: Debt - discusses the concern that Africa's external debt burden continues to seriously impede its socioeconomic development
III. The Regional Development Banks
Inter-American Development Bank - makes loans to Latin American and Caribbean countries with development purposes

Asian Development Bank - a membership development finance institution engaged in promoting the economic and social progress of its developing member countries in the Asian and Pacific region

North American Development Bank - created by the United States and Mexico in a joint effort to preserve and promote the health and welfare of border residents and their environment

The European Bank of Reconstruction and Development - finances the economic transition in central and eastern Europe and the CIS

The European Bank for Reconstruction and Development: An Environmental Progress Report, Executive Summary - reports that the EBRD is not living up to its promises and in some respects is even less progressive in its environmental policies and procedures than other international lending institutions

IV. The Global Environment Facility
    A. GEF's Mandate
UNDP-GEF - within the GEF, the particular emphasis of UNDP is ensuring the development and management of capacity building programs and technical assistance projects as well as managing the Small Grants Programme on behalf of the GEF

The United Nations Environment Programme (UNEP): A Partner in The Global Environment Facility (GEF) - UNEP provides guidance on relating the GEF-financed activities to global, regional and national environmental assessments, policy frameworks and plans, and to international environmental agreements

World Bank and the Global Environment - as one of the implementing agencies of the GEF, the World Bank has the opportunity to pilot high-risk, climate friendly technoogies and innovative approaches to natural resource management

The Global Environment Facility - contains information on the GEF's four program areas, as well as information on its governance and funding structure

    B. Development of the GEF and the Pilot Phase
In Focus: Global Environment Facility - states that the creation of the GEF prior to the Rio Earth Summit allowed the U.S. and its G-7 partners to define global environmental problems as they perceived them and to establish the limits and scope of their responsibilities in assisting developing countries
    C. GEF's Governance and Structure
The Global Environment Facility: A Self-Assessment - provides an overview of the GEF, to include a description of its system of governance
V. Alternative Funding Mechanisms
    A. Micro-Credit and the Grameen Bank
Grameen Bank - operating in Bangladesh, the Grameen Bank lends to the poor, targeting women as a better way to guarantee that the loans are used to increase the standard of living
    B. Debt-for-Nature Swaps
Debt-for-Nature Swap for Jordan - by Jordan Times, announcing that the Jordanian government, IUCN, and UNDP are launching a debt for nature swap

First Debt-for-Nature Swap for Ghana - Conservation International offers a debt for nature swap to Ghana, which is seeking to reduce a more than $50 million loan

    C. National Environmental Funds
IPG Handbook on Environmental Funds: A Resource Book for the Design and Operation of Environmental Funds - a resource book designed to assist the sponsors, organizers and operators of environmental funds to establish, govern and implement funds successfully

Report on the First Asia-Pacific Forum on Environmental Funds - a forum designed to provide information and technical assistance to organizers of national environmental funds and provide opportunities for networking, collaboration, and mutual assistance

    D. Private Philanthropy
Open Society Foundation - founded by George Soros, provides funding to support human rights and civil and political freedom in the former Soviet bloc and elsewhere

Soros Says Will Not Emulate Turner U.N. Donation - reports that financier George Soros had no intention of emulating U.S. media magnate Ted Turner's pledge of $1 billion to U.N. projects but offered to help the organisation implement its aims

    E. New Funding Mechanisms
International Taxes: New Sources of Finance For Development - provided by the Overseas Development Institute, reviews the range of proposals currently being disucssed in finding new sources of finance for development as national aid budgets tighten and assesses their technical feasibility and political acceptability

Paper on International Investment Rules and the Environment - written by Nautilus Institute for Security and Sustainable Development

Pollution and Capital Markets in Developing Countries - a 1998 World Bank report arguing that capital markets can provide the appropriate financial and reputational incentives for firms in developing countries to invest in pollution control