[misc.headlines.unitex] World Bank : IDA9 Replenishment Negotiations : URGENT

patth@ccnysci.UUCP (08/14/89)

Ported from PeaceNET's RainForest.Tropic_Timber Conference:

/* Written  4:57 pm  Aug  9, 1989 by jbarnes in cdp:ran.tropictimber */
/* ---------- "URGENT -- IDA9 NEGOTIATION (WORLD B" ---------- */

                                  August 11, 1989

                    URGENT ACTION ALERT

 World Bank's International Development Association (IDA) 
                Replenishment Negotiations
                  (September 21-22, 1989)

Dear Friends:

     As you may be aware, the negotiation for replenishment 
of IDA is underway.  This provides an opportunity for NGOs 
to voice their concerns about the environmental and social 
problems of IDA.  More importantly, because governments 
will be putting up new funds, this provides a political 
vehicle for achieving part of our reform agenda for the 
World Bank.  
 
     Many NGOs in Washington are putting forward to US 
Government officials proposed reforms on "access to 
information", as a first priority.  Emphasis on this 
particular area of reform is especially timely since it is 
expected that the World Bank will shortly announce its 
adoption of a long-awaited policy directive on 
Environmental Assessments.  One key to proper 
implementation of the Environmental Assessment directive is 
access to information by NGOs.

     The IDA fund has been replenished eight times since 
1960.  This ninth replenishment will cover the years 1991-
1993.  There were negotiation sessions in London on May 16 
and 17, and in Copenhagen, on July 5 and 6.  The next 
sessions will be held in Washington, on September 21 and 22 
and in Kyoto, on November 6 and 7.  It is expected that the 
negotiation will end on November 7.
 
     The main issues at the first two meetings have been 
(1) the size of the replenishment, and (2) which countries 
should receive funds.  The delegates are aiming for 
contributions of between US$12-16 billion.  The US is not 
eager to commit much more than $1 billion, citing budgetary 
difficulties.  The European governments, in general, 
support a larger increase in IDA funds.  Moreover, they 
argue that the US ought to maintain its 20% to 25% share, 
according to the relative size of its economy.  

     Regarding allocation of IDA funds, the US is 
contending that most funds should be concentrated on the 
development of Sub-Saharan Africa;  Japan prefers to focus 
on Southeast Asian countries; some governments doubt that 
African countries' economic infrastructures would be able 
to productively absorb additional large sums of funding.  
There also has been concern that several countries which 
have "graduated" from the ranks of IDA borrowers--such as 
Nigeria--now find themselves in need of IDA funds.  This 
implies that projects funded by IDA have not provided for 
"sustainable" growth sufficient to pay off the large debt 
burdens while at the same time fostering economic growth.

     In the final package there will probably be a renewed 
emphasis on overall economic performance as an indicator 
for loan approval, including the rate of economic growth 
and the willingness of the recipient country to accept 
conditionality thought by the Bank to be necessary for 
improved performance.
     
     Environmentalists argue that a major defect of IDA 
lending policy is its failure to seriously consider the 
environmental and social impacts of projects.  These issues 
were not discussed at the London meeting, but were placed 
on the Copenhagen agenda.  The Bank was asked to prepare 
for the meeting Technical Note No. 5, entitled "IDA's 
Environmental Activities", for the discussion.  In 
preparation for the Cophenhagen meeting, US government 
delegates developed four points: 

     1. Environmental Impact Assessment:  

     Barber Conable, President of the World Bank, has 
directed his staff to issue standards on environmental 
impact methodologies by September, in advance of the Bank's 
annual meeting.  In all likelihood, this will be issued as 
an Interim Directive, with a consultation process on 
implementation that will allow NGO input during the next 
year.

     2. Access to Information and Documentation:  

     Most important Bank documents are secret and not 
available to the public in either donor or borrowing 
countries.  For this reason, it is quite common for the 
supposed beneficiaries of IDA lending--the poor in 
borrowing countries--to have no notice of the Bank-
supported projects that can affect their lives and 
livelihoods.  This is a common feature of all World Bank 
activities.  The US is pressing for greater access to Bank 
documents as a condition of its IDA-9 contribution and is 
looking for support from other countries on this crucial 
issue of democracy and fairness.  Of the environmental 
issues expected to arise during the negotiations, this is 
one on which the Bank has made the least progress in the 
last few years.

     3. Energy Efficiency and Conservation:  

     A growing body of literature demonstrates that energy 
needs in many developing countries can be partly met 
through improved energy efficiency and conservation, 
rendering investments in environmentally harmful dams and 
power plants unnecessary.  Although the Bank has pressed 
for energy pricing reforms in borrowing countries, it has 
done little in the area of demand management through 
lending for efficiency and conservation projects.  The Bank 
has proposed to increase the capabilities of its Energy 
Sector Management Assistance Program (ESMAP), which 
currently has almost exclusive responsibility for these 
issues.  However, that proposal is inadequate because it 
does not address the need to fully integrate conservation 
and efficiency options into the Bank's lending operations. 
     
     4. Direct Participation by NGOs:  

     The Bank should allow for more direct involvement in 
project development by non-governmental organizations.

                               ***

      Of course, there are other environmental issues that 
could be discussed during the replenishment, but we believe 
that these four issues merit serious consideration by all 
the delegates involved.

     If the IDA-9 Replenishment negotiation is to prove 
useful in achieving further reforms of World Bank policies 
and procedures, key member governments must be working 
toward the same goals.  It is imperative that Canada, the 
UK, France, Germany, Italy, Japan and other donors stress 
the importance of these reforms.  Ministries of Finance 
will be responsible for the IDA negotiations in most donor 
countries.

     PLEASE ACT NOW by urging your country delegates to 
consider the four points above in the final two negotiating 
sessions for the replenishment.  Try and get interested 
members of your parliament or legislature to put pressure 
on the government.  If possible, start a letter-writing 
campaign from citizens and leaders of environmental and 
social action organizations.  We would appreciate it if you 
would send us copies of letters you write to your 
countries' delegates, and otherwise keep us informed as to 
the actions you take on this issue.  

                                  Sincerely,

                                  James N. Barnes
                                  Senior Attorney
                                  Environmental Policy Institute/
                                  Friends of the Earth
                                  218 D. St. SE
                                  Washington, DC 20003
                                  Tel: 202-544-2600
                                  FAX: 202-5434710
			          email: jbarnes@cdp.uucp
                                  Telex: 158215480


*************************************************************
                                   August 11, 1989


                      M E M O R A N D U M
 
 
TO: Interested NGOs      
FR: Jim Barnes, David Wirth, Bruce Rich
RE: Public Access to Information on World Bank Operations
_________________________________________________________________
 
A. Basic Principles

1. Increased public access to information is essential to ensure
and improve the quality of Bank operations.  The Bank should make
fully available to the public, including nongovernmental
organizations (NGOs) and community groups, complete information
on the physical, institutional, and economic details and the
environmental, public health, and socio-cultural impacts of
proposed Bank operations.
 
2. The need for greater access to information is particularly
acute for the public, including NGOs and community groups,
affected by Bank operations in borrowing countries.  
 
3. The need for confidentiality between the Bank and borrowing
country governments must be balanced with the necessity to meet
the public's need for information and to assure the quality of
Bank operations. 
 
B. New Bank Policy

Therefore, the Bank should prepare a new policy on public
access to information, to be operational by April 15, 1990 [or
other date], incorporating the following criteria:
 
1. The Bank should develop a policy, in consultation with
interested and concerned members of the public in host and donor
nations, that specifically identifies a limited number of
precisely defined categories of information that the Bank may
treat as confidential for purposes of public disclosure in final
Bank-generated documents and final country-generated documents
required by the Bank.
 
2. The designation of each such category should be justified by
compelling demonstration of the need to preserve the Bank's
confidential relationship with borrowing country governments,
such as the protection of personal privacy or national security. 
 
3. Information concerning fundamental physical, institutional and
economic elements of the Bank's operations, such as loan design,
conditionality, economic analyses, and environmental, public
health, and socio-cultural impacts, should never be treated as
confidential.
 
4. All information not specifically designated as confidential
should be presumed to be available to the public in host and
donor countries.  All final Bank-generated documents and final
country-generated documents required by the Bank should be
presumed available to the public in their entirety, unless the
Bank determines in each specific case that portions of a final
document are confidential.  In this instance, the remaining non-
confidential portions should be available to the public.  
 
5. All final loan-related documents should be publicly available
at least six months prior to Board presentation. 
 
6. A senior (staff grade 23 or above) staff member within each
Country Department (and, where applicable, resident country
office) should be assigned responsibility for responding to
public requests for information concerning that country within
twenty working days of their receipt by the Bank and for
initiating contact with the public in the country in question to
facilitate dissemination of publicly available documents at the
Bank's initiative.



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