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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? • • • • 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 • • • • 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?