Major international public sector financial institutions manage, loan and grant bilateral and multilateral funds on behalf of governments and taxpayers for the purpose of advancing a social and economic development mandate. This development mandate and the fact that public funds are at play means the institutions are bound to the same international human rights framework as the governments who make up their shareholders and Boards.
Since the mid 1990s, FPP has worked with partners to advocate for these publicly financed institutions to adopt, and progressively develop, more effective safeguard frameworks to ensure that their development interventions are less likely to have environmental and social harms associated with them and uphold applicable international law standards on human rights. Safeguards for indigenous peoples form a major plank of most significant public sector financial institutions now, acknolwedging the specific relationship with lands and resources which can be threatened and harmed by large scale public finance investments.
Yet safeguards continue to lag behind the international human rights law that they ought to seek to implement, and systems for ensuring proper compliance with current development and finance institution safeguards remain weak. A proliferation of public finance institutions, including bilateral and multilateral climate and forest funds, also increases the need to track and monitor diverse public finance flows impacting on the forests and forest peoples of the world.