NGOS BOYCOTT IFC POLICY REVIEW

Global Finance, Dec 2004 by Hawser, Anita

UNITED KINGDOM

The IFC refutes claims that its review of environmental and social safeguard policies constitutes a watering down of current standards and that the consultation process is "deeply flawed." In an effort to make its current safeguard policies, which form the basis of the Equator Principles (see article, page 17), clearer, concise and more comprehensive, the IFC proposes replacing them with a set of nine "performance standards," which include a more comprehensive treatment of labor rights, community health and safety and biodiversity.

Following publication of the draft policy and performance standards in August, the IFC has given local stakeholders, Equator banks and non-government organizations (NGOs) until mid-December to comment on the new standards.

However, some NGOs claim that four months is insufficient for a worldwide debate, saying they have yet to see implementation guidelines, which are either unavailable or not translated into local languages. "They [the IFC] are trying to rush this through," says Johan Frijns, coordinator of BankTrack, an international network of advocacy groups, some of which have boycotted regional consultation meetings. "If they are serious about engaging affected communities, we need to translate documents into the local language," he adds. NGOs say the wording of the draft consultation suggests a shift from mandatory compliance to a "discretionary" approach. "Safeguard policies are meant to safeguard those that are affected by IFC decisions," Frijns continues. "Performance standards suggest discretionary measures, which is a different thing."

Equator bank ABN AMRO also expressed concern. "We don't want a set of broadly defined performance standards where disputes can arise," says Richard Burrett, global head, sustainable development, ABN AMRO.

Rachel Kyte, director, environment and social development department, IFC, says no one had provided evidence of how the standards constituted a weakening of current policy. "In many cases what people are saying is that by clarifying aspects, it gives the impression of being stricter," she says. As the IFC had already gathered volumes of information in terms of what worked and what didn't work with its current safeguard policies, Kyte says four months for consultation was sufficient. -Anita Hawser