In 2010-2011, the IFC is conducting an implementation review and update to its Policy and Performance Standards on Environmental and Social Sustainability and Disclosure Policy.
IAP is advocating for stronger protections of housing and land rights in the Performance Standards, informed by original research conducted by IAP Research Fellows in Peru, India and Cambodia
Updates
- IAP and partners influence IFC's Manila consultation, July 2010. IAP helped support the participation and effective advocacy by over 40 civil society and community groups. Read more, including media coverage and IAP case studies>>
- IAP conducts field research on IFC lending in Laos, August 2010. IAP's 2010 Summer Research Fellow Gigi Mao conducts field research on the human rights impacts of IFC's controversial "Advisory Services" lending. Read Gigi's reflections from the field>>
- IAP submits recommendations to IFC, April 2010. Based on original field research conducted on multiple IFC-financed projects, IAP's comments identify areas where IFC is failing to respect housing and land rights, and outlines needed improvements. Read the comments>>
Overview
The International Finance Corporation (IFC) is one of the two private sector lending arms of the World Bank Group. The IFC is currently undergoing a three-year review of its environmental and social safeguard policies, including its policy covering the IFC, called the “Policy on Social and Environmental Sustainability;” eight “Performance Standards,” which govern the obligations of IFC clients (i.e., corporations); and Policy on Disclosure of IFC Information.
For more background, go to IAP's web page on the IFC Safeguard Policies Review, 2006.
Concerns
The IFC’s Environmental and Social Sustainability Policy and Performance Standards not only determine how communities and the environment are protected during project implementation and what information is available to public, but also set an example for other private companies and financial institutions. In 2008, the IFC invested over $32 billion in private companies operating in the Global South, and it exerts an increasing influence on the standards applied by private banks involved in project finance. At least sixty-one private banks have adopted the Equator Principles - a set of social and environmental standards, which are based on the IFC’s Performance Standards. While the Policy and Performance Standards adopted by the IFC in 2006 reflect some improvements over previous environmental and social safeguards, they fall short of the recommendations of many civil society groups. Moreover, implementation of the Policy and Performance Standards is alleged to be uneven.
IFC’s investments can leave heavy environmental and social footprints, particularly in the extractive industries and large infrastructure, often adversely affecting surrounding land, air and water and disrupting the livelihoods and community life of people who live nearby. Given the shortcomings of IFC policies, civil society has an important role to play in ensuring that, when the IFC finances projects, it genuinely contributes to poverty reduction and sustainable development.
Key civil society demands
Many civil society organizations have identified as important several key issues in the IFC Environmental and Social Sustainability Policy and Performance Standards and Disclosure Policy. These issues include:
- requiring full transparency for extractive industry-related contracts, payments to governments;
- adopting new, more rigorous indicators of gender impact, displacement impacts, poverty reduction and sustainability for IFC projects;
- with its clients, putting into practice and reporting publicly how IFC and its clients ensure free, prior and informed consent of communities (or at least broad community support) for projects with significant impacts;
- revising project categorization criteria, and ensuring implementation that is consistent with these criteria;
- disclosing more information, such as project implementation and completion reports;
- including specific provisions to safeguard human rights.
Our Approach
On July 27, 2009, IAP, along with partner organizations Bank Information Center (BIC), The Center for International Environmental Law (CIEL), and a coalition of over 100 civil society organizations in over 40 different countries sent a letter to the IFC advocating that the IFC provide an opportunity for meaningful civil society input in the review process. Read the letter to the IFC. IAP continues to play a lead role in coordinating the campaign and leveraging it as an opportunity from broader reforms in support of protecting human rights.
As in 2006 with the IFC’s initial review of its safeguard and disclosure policies, the International Accountability Project, in collaboration with a global civil society coalition, will continue to participate in monitoring the three-year revision process. The coalition will advocate for the IFC to allow meaningful public input into the policy revisions through an open consultation process. In its advocacy efforts, IAP focuses primarily on issues associated with the involuntary resettlement performance standard as well as on the overall accountability and community participation issues at stake in the Policy and Performance Standards. Read a briefer submitted by IAP and partners to the IFC, Key Issues for Upholding Land, Housing & Property Rights.
IAP is conducting original field research to inform our advocacy in this review, and to highlight on-the-ground realities of Performance Standard implementation (or lack thereof). In the summer of 2009, IAP placed research fellows in Peru, India and Cambodia investigating the displacement and resettlement impacts of IFC-supported projects. In 2010, IAP Research Fellow investigated impacts of IFC's "Advisory Services" lending, via a case study in Laos Findings from this research will contribute to input IAP will provide to the IFC. Read more about IAP research fellows's findings and experiences in the field>>
Learn more...
Related Links:
Correspondence:
IAP Documents:
Related Documents:
- One
Step Forward, One Step Back: An Analysis of the International Finance
Corporation’s Sustainability Policy, Performance Standards, and
Disclosure Policy, a comprehensive report by IAP and others that outlines civil society's concerns with the IFC's new policy framework, May 2006.
- UK Government Statement on IFC Revised Policy and Performance Standards, Nov. 25, 2005 (Acrobat 33.54 KB)
- Second Draft of IFC Policy and Performance Standards, Sept. 22, 2005 (Acrobat 281 KB)
- Draft Guidance Notes on IFC Policy and Performance Standards, January 21, 2005. (Acrobat 1,523 KB)
- First Draft of IFC Policy and Performance Standards, August 2004 (Acrobat 1.49 MB)
- Civil Society Comments on IFC’s Revised Disclosure Policy, Sustainability Policy and Performance Standards, Nov. 3, 2005 (Acrobat 38.88 KB)
- Gender Action Comments on IFC's Second Draft, November 2005 (Acrobat 43.94 KB)
- IFC Operational Directive 4.30 on Involuntary Resettlement, June 1990 (Acrobat 91.05 KB)
- World Bank Operational Policy 4.12 on Involuntary Resettlement, June 2004 (Acrobat 177.57 KB)
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