Forest Peoples Programme: Platform for Rights, Rules and Responsibilities for IFC's Safeguard Policy Review

Sanema boy, Upper Erebato, South Venezuela

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Platform for 'Rights, Rules and Responsibilities'
for IFC's Safeguard Policy Review

December 2004

The International Finance Corporation (IFC) has provided more than $40 billion directly to private companies, many of them multinational corporations operating in developing countries, in the name of sustainable development and poverty reduction. The IFC is also involved in the lending of billions of additional dollars through its financial catalyst role. This money often goes to projects that lead to environmental pollution and degradation, poverty creation and more social inequities.

The IFC argues that it brings environmental and social expertise and improves high-risk projects and that without its involvement, projects would be much worse. However, internal studies and independent evaluations carried out by affected communities and civil society organizations demonstrate serious and systemic problems with implementation of the institution’s environmental and social safeguard policies. It is also doubtful whether the best use of public funds for development and poverty alleviation is to mitigate the negative consequences of these high-risk projects rather than invest in projects that have clearer development benefits.

This past experience demonstrates the need for clear and enforceable rules for IFC lending and significant institutional reforms to guarantee due diligence, ensure effective implementation and improve accountability to affected communities and citizens. The proposed policies do not address these concerns, but instead opt for more flexibility and subjectivity. We oppose this approach and call upon the IFC to upgrade and strengthen its social and environmental policies and ensure that multinational corporations respect fundamental international human rights, labor rights and environmental law as conditions for access to IFC loans.

Global public institutions must operate for the public good. We call for the IFC to abide by clear, mandatory Rules, Rights and Responsibilities (RRR) to promote the public good through its lending.

The IFC’s Safeguard Review Process must address current problems of implementation of the safeguard policies, guarantee that there is no backsliding or weakening of existing policies as well as lead to the strengthening and improvement of environmental and social policies. The undersigned civil society and Socially Responsible Investors call on the IFC and its Board of Directors to adopt the following points.

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1. Adopt Policy and Performance Standards that establish clear, binding rules and meet the highest social and environmental standards for IFC and its borrowers, which would allow the IFC to claim leadership in international standard-setting and demonstrate its commitment to respect international human rights and environmental laws.

2. Commit and hold itself accountable to deliver on poverty reduction and sustainable development. One of IFC’s core responsibilities must include evaluating each and every project it considers for financing to determine how and whether poverty reduction is likely to occur, stating specifically how poverty will be reduced -- including at the local level -- and tracking and reporting regularly and publicly on each project’s outcomes, development impacts, and any necessary mitigation efforts in order to ensure a basic level of accountability.

3. Establish clear mechanisms for making the policies more enforceable and accountable and reject self-monitoring by corporations as proposed throughout the proposed Performance Standards. IFC must take responsibility for meaningful supervision and project monitoring in a publicly transparent and accountable manner, which would include, at a minimum, the public release of all Action Plans.

4. Ensure that information is disclosed in appropriate languages in a timely and predictable way throughout the project cycle. This includes defining clear rules for the early release of all action plans, social and environmental assessments, monitoring and evaluation reports, as well as procedural guarantee that reflect a genuine commitment to the presumption of disclosure. The IFC must also require the public disclosure of all host government agreements and similar contracts, as well as increase the transparency of revenues from IFC-supported investments.

5. Screen all companies for their past performance on environmental, social and human rights issues. The IFC should only lend to clients who are fully committed to sustainable development and safeguarding the environment and internationally agreed human rights of local communities, workers and vulnerable groups. We emphasize one of the main conclusions of the CAO’s internal review of the IFC’s safeguard policies, which stated that the private sector client’s commitment to environment and social protections is the main determinant of whether or not the company will comply with IFC’s policies.

6. Uphold and ensure compliance with international human rights, labor and environmental laws, conventions, and norms. The Performance Standards should make reference to relevant international laws and standards and ensure that projects are designed and implemented in accordance with the client’s and host countries’ applicable international commitments. IFC has an obligation to ensure that its clients abide by relevant international laws and norms and therefore, as recommended by the CAO, must “systematically consider risks to human rights at the project level, take appropriate [and effective] steps to mitigate them and provide clearer guidance to clients on both these aspects. [T]hese aspects should be reported on at the project level.” Such assessments and reports must be undertaken by reputable and independent third parties and not by the client itself and be a pre-condition of IFC support for the project. Project affected persons, communities and indigenous peoples have the right to participate in project assessments, reporting and human rights audits.

7. Ensure respect for indigenous peoples’ internationally guaranteed rights, including their rights of ownership over lands and resources traditionally owned or otherwise occupied and used, and only support projects that have the free, prior and informed consent of indigenous peoples arrived at through their customary decision-making processes and institutions subsequent to meaningful and good faith consultation and their informed and effective participation commencing at the earliest stages of project design, and agreement on benefits. These customary decision-making processes constitute culturally appropriate and collective decision-making, which enhances indigenous peoples’ self-development. All agreements between relevant parties will be reflected in the loan covenants and be made publicly available. We strongly reject the cynical manipulation of free, prior and informed consent as ‘free, prior and informed consultation leading to broad community support’ and insist that the IFC and others not use this language.

8. Ensure that conditions are in place for meaningful and respectful engagement with affected communities (free, prior informed consent). In addition, the IFC should ensure a process whereby, after having access to all relevant information in an appropriate language and form, local communities identify their development priorities and the benefits and results that they want to achieve, rather than allowing the company or others to determine the benefits they will provide. One of the IFC’s core responsibilities must be to evaluate community acceptance, negotiated settlements, and meaningful participation and not leave this to the private sector clients. This requires ongoing supervision and monitoring to ensure that any agreements entered into between communities and the client are respected over time. All projects that involve the displacement of local people must be subject to their consent, and must result in an improvement of their standards of living and quality of life and include full restoration of their livelihoods and resource base.

9. Include a self-selected community-based monitoring approach for projects with significant social and environmental impacts to improve oversight and accountability of these projects. One key component will be strengthening the community’s capacity to monitor projects by ensuring that project funds are made available for this purpose and are independent of company or government influence. Furthermore, the community should have influence regarding the terms of reference of the monitoring methodology used. All community monitors should be informed of the requirements of the IFC policies and Performance Standards, and should be informed about the processes of accountability at the IFC in a language and manner that is appropriate for them, so that they have a full understanding of their rights and potential remedies. Outcomes and recommendations of monitoring should be made public and affect the future direction of the project.

10. Commit to measuring, disclosing and reducing the harmful impacts of climate change in the developing world by requiring a reduction in overall emissions from IFC investments at the project level. Work with companies to reduce emissions and operate more efficiently and report fully on the direct and indirect emissions that result from IFC portfolio investments, including financial intermediaries. Furthermore, the IFC should more aggressively shift its portfolio towards renewable energy lending.

11. Define IFC’s ‘no-go circumstances’ in the overall policy by including the current Exclusion List and expanding it to include, at a minimum,

· IUCN I-IV protected areas and World Heritage sites for all industrial activities and other areas that are deemed to be of high conservation value, as defined through a multi-stakeholder process for all Category A projects;

· Certain practices that are particularly destructive, such as riverine and submarine tailings disposal of mine waste;

· Clarifying social, cultural and environmental ‘no-go circumstances’ and the criteria used.

Endorsed by:

Kate Walsh AID/WATCH, Australia	Justin Sherrard Cambiar Pty Limited, Australia
Binnie O’Dwyer Friends of the Earth, Australia	Rowland Benjamin Information for Action, Australia
Stewart Mills Jubilee Australia, Australia	Techa Beaumont Mineral Policy Institute, Australia
Dr Mariann Lloyd-Smith National Toxics Network, Australia	John Seed Rainforest Information Centre, Australia
Elfriede Schachner AGEZ - Arbeitsgemeinschaft Entwicklungszusammenarbeit (Coalition of 29 Development NGOs), Austria	Nonno Breuss ECA-Watch Austria and ATTAC, Austria
Heinz Hödl Koordinierungsstelle der Österreichischen Bischofskonferenz iinternationale Entwicklung und Mission (KOO), Austria	Mayis Gulaliyev Center for Civic Initiatives, Azerbaijan
Galina Kozlova Ecograph, Azerbaijan	Telman Zeynalov Ecological Department NGO FORUM, Azerbaijan
Telman Zeynalov National Center of Enviromental Forecasting, Azerbaijan	Zakir Kibria BanglaPraxis, Bangladesh
Arup Rahee LOKOJ, Bangladesh	Ashraf-ul-Alam Tutu Coastal Development Partnership (CDP), Bangladesh
Ann De Jonghe Broederlijk Delen, Belgium	Judith Neyer FERN, Belgium
Johan Bosman KWIA, Flemish Support Group for Indigenous Peoples, Belgium	Jan Cappelle Proyecto Gato, Belgium
Henry Tito CEADES (Centro de Estudios Aplicados del Desarollo Social), OICH (Organización Indigena Chiquitana), y CPESC (Coordinadora de Pueblos Etnicos de Santa Cruz), Bolivia	Smiler Morosi Paz Confederacion Nacional de Naciones Indegenas Orginiarias de Bolivia (CONNIOB), Bolivia
Flávia Barros INCLUIR - Instituto de Pesquisa e Assessoria sobre Desenvolvimento e Globalização, Brasil	Roberto Smeraldi Amigos da Terra - Amazônia Brasileira, Brazil
Esther Neuhaus Brazilian Forum of NGOs and Social Movements for Environment and Development, (Representing over 1000 Groups) Brazil	Alcides Faria Ecoa - Ecology and Action, Brazil
Francisco Milanez Ecofund, Brazil	Maurício Galinkin Fundação CEBRAC, Brazil
Renato Cunha Gambá, Brazil	Sérgio Guimarães Instituto Centro de Vida, Brazil
Donald Sawyer Instituto Sociedade, População e Naturaza, Brazil	Marcus Faro Rede Brasil sobre Bancos Multilaterais, Brazil
Bestey Neal Rede Mata Atlântica, Brazil	Alessandro Menezes Rede Pantanal, Brazil
Petko Kovatchev Center for Environmental Information and Education, Bulgaria	Ivailo Hlebarov Za Zemiata, Bulgaria
Issaka Herman TRAORE, Burkina Faso	Seak Sophat Royal University of Phnom Penh, Cambodia
Florence Ntassi Center for Environment and Development (CED), Cameroon	Akong Charles Ndika Global Village Cameroon, Cameroon
Ndoumbe Nkotto Honoré FOCARFE, Cameroon	Anil Naidoo Blue Planet Project/The Council of Canadians, Canada
Robert Walker Ethical Funds, Canada	Graham Saul Friends of the Earth, Canada
Michael Bassett Halifax Initiative Coalition, Canada	Jamie Kneen Mining Watch, Canada
Dermot Foley Real Assets Investment Management Inc., Canada	Derek MacCuish The Social Justice Committee, Canada
Isaac Rojas COECOCeiba - FoE Costa Rica, Costa Rica	Petr Hlobil Centre for Transport and Energy (CDE), Czech Republic
Pavel Pribyl Hnuti Duha, Czech Republic	Hannah Ellis Friends of the Earth, England, Wales & Northern Ireland
Peep Mardiste Estonian Green Movement, Estonia	David Eloy AITEC, France
Jean-Luc Touly Association pour un Contrat Mondial de l’Eau, France	Alex Nikichuk ATTAC France Water Group, France
Philippe Quirion Climate Action Network, France	Sebastien Fourmy French IFI network, France
Sébastien Godinot Friends of the Earth, France	Xavier Bouchet Gabas Nature et Patrimoine, France
Yannick Jadot Greenpeace, France	Guy Leger MNLE, France
Aurore Lebouchard Mouvement International de la Reconcilation (MIR France), France	Monique Derue Peuples Solidaires, France
Annie Girard Réseau Foi et Justice Afrique-Europe, France	Bernard Salamand Ritimo, France
Danielle Toure Roberget Eau Vive, France	Gerard Borvon S-EAU-S, France
Michel Roy Secours Catholique / Caritas, France	Sharon Courtoux Survie SFI, France
Regis Renard Terre des Hommes, France	Remy Martin Uminate (network of 150 local NGOs), France
Kakha Nadiradze Association for Farmers Rights Defense (AFRD), Georgia	Nino Gujaraidze Green Alternative Association, Georgia
Lali Kobiashvili The Association of Childrens` and Patients’ Rights Protection Asklepsius, Georgia	Lasha Chkhartishvili Union of Environmental Protection and Animal Rights - "LOBO", Georgia
Tsovinar Nazarova People’s Harmonious Development Society, Georgia	Gertraud Gauer-Süß Bremer Informationszentrum für Menschenrechte und Entwicklung, Germany
Ulrich H. Gundert Brot für die Welt, Germany	Roger Meyer Eirene Deutscher Zeig E.V., Germany
Ulrich Mueller FoodFirst Information & Action Network, Germany	Jürgen Marquardt Lernen – Helfen – Leben, Germany
Reinhard Behrend Rettet den Regenwald, Germany	Knud Voecking Urgewald, Germany
Andrea Plöger W E E D - World Economy, Ecology & Development, Germany	Daniel Owusu-Koranteng Wassa Association of Communities Affected by Mining, Ghana
Yannick Etienne Batay Ouvriye, Haiti	Ákos Éger National Society of Conservationists, Hungary
Joe Athialy The People’s Movement, India	Meda Gurudutt Prasad CADME/ACTION, India
Souparna Lahiri Delhi Forum, India	Mukta Srivastava Initiative, India
Medha Patkar Narmada Bachao Andolan (Save the Narmada Movement), India	Sanjay M.G. National Alliance of People’s Movements, India
Prajnalankar Bhikkhu Peace Campaign Group (PCG), India	Himanshu Thakkar South Asia Network on Dams, Rivers & People (SANDRP), India
Binny Buchori INFID (International NGO Forum on Indonesian Development), Indonesia	Heine Nababan People’s Coalition for the Rights to Water, Indonesia
Longgena Ginting WALHI, Indonesia	Manana Kochladze CEE Bankwatch Network, International
Kate Watters Crude Accountability, International	Janneke Bruil Friends of the Earth, International
Daniel Moss Grassroots International, International	Bernice Romero Oxfam International, International
Johan Frijns BankTrack, International	Jaroslava Colajacomo Campagna per la riforma della Banca Mondiale (CRBM), Italy
Laura Radiconcini Friends of the Earth, Italy	Francesco Ferrante Legambiente, Italy
Gianfranco Bologna WWF, Italy	Yoshihito Miyakoshi A SEED, Japan
Naomi Kanzaki Friends of the Earth, Japan	Keiko Kusuhara Fukuoka NGO forum on ADB, Japan
Yuki Tanabe Japan Center for a Sustainable Environment and Society (JACSES), Japan	Setsuko Kudo Jubilee Kansai Net-Work, Japan
FUKUDA Kenji Mekong Watch, Japan	Semen Svitelman Green Salvation, Kazakhstan
Andrey Andreyev NGO Legal Initiative, Kazakhstan	Valery Uleev Jalal-Abad Regional Human Rights Organization "Justice" ("Spravedlivost"), Kyrgyzstan
Ramazan Dyryldaev Committee for Human Rights, Kyrgyz Republic	Igor Hadjamberdiev, For Civil Society NGO, Kyrgyz Republic
Kalia Moldogazieva Human Development Center "Tree of Life", Kyrgyz Republic	Natalia Ablova Bureau on Human Rights and Rule of Law, Kyrgyzstan
Tolekan Ismailova PA "Civil Society Against Corruption", Kyrgyzstan	Saulius Piksrys Atgaja, Lithuania
Ana Colovic Eco-sense, Macedonia	Balan Palanisamy Penang Inshore Fishermen Welfare Association (PIFWA), Malaysia
Roy Laifungbam South Asian Solidarity for Rivers and People (SARP), Nepal	Filka Sekulova A SEED Europe, Netherlands
Henneke Brink Both ENDS, Netherlands	Eloho Ogberagha Agency for Health and Environmental Projects, Nigeria
Innih Archibong Liberty Now, Nigeria	Andrew Preston Association for International Water and Forest Studies, Norway
Lars Løvold Rainforest Foundation, Norway	Naeem Iqbal Pakistan Network for Rivers Dams and People, Pakistan
Shaukat Omari Transparency International, Pakistan	Lester Seri Conservation Melanesia Inc., Papua New Guinea
Jorge Bejar Apaza Asociación Civil LABOR, Perú	Miguel Palacín Quispe CONACAMI (National Confederation of Peruvian Communities Affected by Mining), Perú
Oscar Díaz Barbosa & Zaira Carbajal Jara Instituto Ambientalista Natura, Perú	Joan Carling Cordillera Peoples Alliance, Philippines
Monica Wilson GAIA (Global Alliance for Incinerator Alternatives), Philippines and USA	Joanna Bulawa Green Federation Gaja, Poland
Andrzej Gula Institute for Environmental Tax Reform, Poland	Anna Roggenbuck Polish Green Network, Poland
Renato Miguel Ascenso Roldao Euronatura – Centre for Environmental Law and Sustainable Development/ ECA Iberia, Portugal	Sergey Fedorov Arkhangelsk Association of Ecological Organizations, Russia
Fatima Kobzhasarova Chelyabinsk City Public Movement of Women "Fatiha", Russia	A.Petrov Druzina Movement, Russia
Inga Zinovieva Ecological Environmet Center Dauria, Russia	Andrey Laletin Friends of the Siberian Forests, Russia
Ivan Blokov Greenpeace, Russia	Dr. Evgeny V. Vilkov Russian Academy of Sciences, of Daghestan Scientific Centre, Russia
Dmitriy Lisitsyn, Sakhalin Environment Watch, Russia	Alexander Arbachakov Taiga Research and Protection Agency, Russia
Kalinina Natalia V. The Organization Amur Ecological Club, Russia	Jennie Sutton The Regional NGO Baikal Environmental Wave of the Russian Federation, Russia
Peter Mihok Center for Environmental Public Advocacy, Slovakia	Wally Menne Timberwatch Coalition, South Africa
Mario Carreño Fuego Proyecto de Cooperación y Ayuda al Pueblo Ticuna, Spain	Mailer Mattié Selva.org, Spain
Hemantha Withanage Center for Environmental Justice, Sri Lanka	Deshamanya Dr. Ponna Wignaraja South Asian Perspectives Network Association, Sri Lanka
Christine Eberlein Berne Declaration, Switzerland	Bruno Gurtner Swiss Coalition of Development Organizations, Switzerland
Jim Enright Mangrove Action Project (MAP), Thailand	Antonina Galkina MC Joint Action, Ukraine
Yury Urbansky National Ecological Center of Ukraine, Ukraine	Jeff Powell Bretton Woods Project, United Kingdom
Tom Griffiths Forest Peoples Programme, United Kingdom	Richard Harkinson Minewatch, United Kingdom
Nicholas Hildyard The Corner House, United Kingdom	Roberto Bissio Third World Institute, Uruguay
Soren Ambrose 50 Years Is Enough: U.S. Network for Global Economic Justice, USA	Dave Batker Asia Pacific Environmental Exchange, USA
Dick Kamp Border Ecology Project, USA	Lauren Compere Boston Common Asset Management, LLC, USA
Susan Vickers Catholic Healthcare West, USA	Julie Tanner Christian Brothers Investment Services, Inc., USA
Anne Perrault Center for International Environmental Law (CIEL), USA	Doug Hellinger Development Gap, USA
Adam Kanzer Domini Social Investments LLC, USA	Valerie Heinonen Dominican Sisters of Hope, USA
Tom Athanasiou EcoEquity, USA	Bruce Rich Environmental Defense, USA
David Waskow Friends of the Earth, USA	Elaine Zuckerman Gender Action, USA
Paula Palmer Global Response, USA	Rev. David Schilling and Sister Patricia Wolf Interfaith Center on Corporate Responsibility, USA
Dana Clark International Accountability Project, USA	Bama Athreya International Labor Rights Fund, USA
Peter Bosshard International Rivers Network, USA	Doris Gormley Jesuit Conference, USA
Séamus P. Finn OMI Justice/Peace & Integrity of Creation, USA	Andrew Brengle KLD Research & Analytics, Inc., USA
Alfredo Quarto Mangrove Action Project, USA	Marie Dennis Maryknoll Office for Global Concerns, USA
Catherine Rowan Maryknoll Sisters, USA	Mark A. Regier Mennonite Mutual Aid, USA
Valerie Heinonen Mercy Investment Program, USA	Barbara Bramble National Wildlife Federation, USA
S. Jacob Scherr Natural Resources Defense Council, USA	Bruce Herbert Newground Social Investment, USA
Doug Norlen Pacific Environment, USA	Marcia Ishii-Eiteman, PhD Pesticide Action Network North America (PANNA), USA
Mike Brune Rainforest Action Network, USA	Tim Keating Rainforest Relief, USA
Valerie Heinonen Sisters of Mercy Regional Community of Detroit Ursuline, Sisters of Tildonk-U.S. Province, USA	Steve Lippman Trillium Asset Management, USA
Rev. Douglas B. Hunt United Church of Christ Network for Environmental and Economic Responsibility, USA	Aniruddha Vahadilla, USA
Bruce Jenkins Bank Information Center, USA	Kevin Danaher Global Exchange, USA
Nora. M. Nash Corporate Social Responsibility Sisters of St Francis of Philadelphia, USA	Domuladjanov Ibragijon “For Ecologically Clean Ferghana” Association, Uzbekistan
Caucasus Environmental NGO Network (CENN)

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