Download International Financial Institutions

International Financial
Institutions
World Bank Group
• Established in 1946 by the Bretton Woods Agreement
• Dominated by largest donor countries
– US, EU states, Japan
• Loans
– IBRD (International Bank for Reconstruction and Development)
– IDA (International Development Association)
• Assistance for restructuring and development
-Infrastructure
-Structural adjustment lending
-Education, agriculture, environment, etc.
Figure 1 D elegation model of international organizations (IOs)
State 1
International Regime
State 2
IO
State N
Policy
Outcomes
What Prompted Environmental
Reforms at the WB?
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Advocacy Pressure
US Concern and support by other donors
Bank Staff
Bank leadership
Role of Advocacy Pressure
• Polonoroeste Project, Brazil
• Sardar Sarovar Dam, Narmada River, India
– 1985-1991
Aspects of WB Reform
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Environmental Assessments
Public Information
Independent Inspection Panel
Vice Presidency for Environment and Socially
Sustainable Development
• Environment Department
• Consider different types of capital
• Reduced share of environmental damaging
projects; increase in environmental projects
•
Source: Nielson and Tierney 2003
Is the Glass Half Full or Half
Empty?
• Criticisms:
– Not enough consideration of sustainable
alternatives
– Not always compliant with its own rules
– Incentives for manages to produce large
projects
– Other?
Qinghai Poverty Alleviation Project
• Poverty Alleviation in Inner Mongolia and Qinghai, W,
NW China, approved in 1999
• Voluntary resettlement of 58,000 farmers from barren
mountains to irrigated land
• Opposed by NGOs and Intl. Campaign for Tibet
• Inspection Panel found irregularities with the
implementation of environmental and social
assessments; & with resettlement plans
• China withdrew request for financing in 2000
Deepen Reform of the WB?
• Role of donor and recipient countries?
• Should the WB dictate environmentalism
to poor countries?