In 2010, the World Bank's International Finance Corporation (IFC) - which provides financing and technical assistance directly to companies operating in the Global South - is reviewing its Environmental and Social Policy and Performance Standards and Disclosure Policy. (For more on the policy review, click here.)
To help inform the review, in January 2010, IAP submitted brief comments on Upholding Housing, Land and Property Rights in the IFC Environmental and Social Policy and Performance Standards to the IFC. These comments were jointly prepared by IAP, Housing and Land Rights Network (HLRN) and the International Network on Displacement and Resettlement (INDR).
The comments are meant to provide an overview and basis of discussion on some housing, land and property rights issues that should be further considered during the policy review but, they are not a comprehensive critique IFC’s Performance Standard 5 on Land Acquisition and Resettlement, on which we hope to provide more details in the coming months.
During the review of the IFC’s Policy and PS, it will be critical to consider whether and how the IFC’s standards are meeting the principles and requirements outlined in international guidelines on development-induced displacement (DID). Specifically, the review should consider if IFC standards have effectively mitigated the risks of those displaced by its projects and, importantly, whether or not the displaced have benefited from projects in their own terms. Many of the IFC’s existing mitigation measures for displacement are included in Performance Standard 5 on Land Acquisition and Involuntary Resettlement (PS 5). However, as described in the comments, limited or unclear provisions in PS 5 may threaten the loss of livelihood, food insecurity, health problems and other impacts for those physically or economically displaced by IFC projects.
While this is not a comprehensive overview of provisions within PS 5 that may need review, some key issues to consider during the IFC policy update include:
- Minimizing displacement and ensuring that displaced persons are project beneficiaries
- Protection for those displaced by non-land acquisition activities
- Land-based compensation and livelihood restoration
- Freedom from coercion in negotiated settlements
- Guidelines for consultation and participation
Framing the IFC’s policy and standards through a human rights lens will facilitate the institution’s capacity to respond to emerging human rights standards and will lead to better development outcomes for communities protected by these rights.
Read the full comments to the IFC: Key Issues for Upholding Housing, Land and Property Rights in the International Finance Corporation’s Review of the Environmental and Social Policy and Standards, January 2010.
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