africa: REPORT COUNTERS WORLD BANK'S "HIGH RISK/HIGH REWARD" STRATEGY
As World Bank representatives gathered in Dubai for the 2003 World Bank/IMF Annual Meetings, Environmental Defence, Friends of the Earth, and International Rivers Network released a report in response to the World Bank's new "high risk/high reward" strategy in the water, forestry, and extractive industries sectors. The report, Gambling With People's Lives, analyzes the World Bank's ability to manage social and environmental risks in high-risk projects and to learn from its past mistakes. The report is available at www.irn.org.
REPORT COUNTERS WORLD BANK'S "HIGH RISK/HIGH REWARD" STRATEGY
NGOs Predict Increased Conflict Around Risky World Bank Projects
(19 September 2003 - Dubai) As World Bank representatives gather in
Dubai for the 2003 World Bank/IMF Annual Meetings, Environmental
Defense, Friends of the Earth, and International Rivers Network today
released a report in response to the World Bank's new "high risk/high
reward" strategy in the water, forestry, and extractive industries
sectors. The report, Gambling With People's Lives, analyzes the World
Bank's ability to manage social and environmental risks in high-risk
projects and to learn from its past mistakes. The report is available
at www.irn.org.
"The World Bank is playing a reckless, high-stakes game of roulette,
where the poor - and not the Bank - stand to lose big," said
Environmental Defense policy analyst Shannon Lawrence. "While the
Bank and private investors are shielded from project risk, the
communities affected by its projects have no such guarantees."
One of the Bank's most important environmental reforms of the 1990s
was its more cautious approach to high-risk infrastructure and
forestry projects. This policy is now being reversed. The World Bank
recently announced that it would re-engage in contentious water
projects such as large dams in what it refers to as a "high risk/high
reward" strategy. In 2002, the Bank dismissed its "risk-averse"
approach to the forest sector when it approved a new forest policy.
The World Bank is also considering support for new oil, mining, and
gas projects in unstable and poorly governed countries, against the
recommendations of its own evaluation unit.
"Big is beautiful again, and in spite of their abysmal track record,
megaprojects are back in style at the World Bank," says Peter
Bosshard, policy director at International Rivers Network. "The
Bank's new high-risk strategy will prolong the deadlock in important
sectors such as water and electricity, and will block the development
of sustainable alternatives."
"Large dam, forestry, and extractive industries projects funded by
the World Bank have displaced millions of people and devastated the
environment," said Carol Welch, international program director at
Friends of the Earth. "The Bank's spotty implementation of its
inadequate safeguard policies means that communities and the
environment will continue to face the greatest risks in World Bank
projects."
The report recommends, among other things, that the World Bank repair
the damage caused by its previous high-risk projects, stay away from
new high-risk projects, and address the human rights dimensions of
its work. The report will be presented on Monday, September 22 at the
Dubai Convention Center, Room G-01 from 11:00 am-12:00 pm.
Contact:
. Peter Bosshard, International Rivers Network, +1-510-848-1155 or
+1-510-213-1441 (Dubai)
. Shannon Lawrence, Environmental Defense, +1-202-746-9202
. Colleen Freeman, Friends of the Earth, +1-202-783-7400 x121
###
Friends of the Earth International is a federation of 68
environmental organizations from all over the world that campaign on
the most urgent environmental and social issues of our day, while
simultaneously catalyzing a shift toward sustainable societies.
Friends of the Earth US is the U.S. arm of the federation.
International Rivers Network (IRN) supports local communities working
to protect their rivers and watersheds. IRN works to halt destructive
water development projects, to promote sustainable alternatives, and
to change the policies of financial institutions, governments, and
the dam industry.
Environmental Defense, a leading US nonprofit organization,
represents more than 300,000 members. Since 1967, Environmental
Defense has linked science, economics, law and innovative
private-sector partnerships to create breakthrough solutions to the
most serious environmental problems. www.environmentaldefense.org