The World Bank is consulting with European and other regional stakeholders on its proposals to replace existing social and environmental safeguard policies with revised “standards.” This time, the bank board’s Committee on Development Effectiveness, critical of the conduct so far of this consultation (started in 2012) has requested that 52 important issues defined by the committee and Web-posted in advance, be submitted to transparent public discussion, with accountability on how proposals raised are addressed. The international debate around weakening or strengthening the existing safeguard policies is thus becoming more substantive, as it certainly should.
The 52 issues incorporated by CODE address, inter-alia, content omissions and the extent of the separation and/or overlap of responsibilities and accountability between the World Bank and its borrowing states for risks and possible adverse impacts on the environment, the society, or particular subgroups by projects financed by development banks (not only the World Bank) and implemented by borrowers. The discussion conveys on the future status of the safeguards in the World Bank’s policy architecture.
The debate’s ultimate core is an old challenge: to prevent and handle justly the economic and social externalities of development projects. Metaphorically, externalities can be compared with the mythical multiheaded dragon — except that in development projects the externalities are not mythical. They are real and toxic. Examples abound: environmental destructions; the impoverishment of displaced people, exposed to risks imposed on them and left worse off; polluted air, etc. Institutionalized safeguard policies are precisely intended — as their name states — to reduce, prevent and “safeguard” against surreptitious externalization of unrecognized project costs.
About the authors
Michael Cernea
Michael Cernea is a professor of social anthropology and international affairs. He is a former World Bank senior adviser for social policy and sociology, and a world-renowned expert on population resettlement issues. During his long career at the bank he initiated several safeguard policies and published widely on development issues.
Vinod Thomas
Vinod Thomas is currently visiting professor at National University of Singapore, and distinguished fellow in development management at the Asian Institute of Management, Manila. Previously, he was director-general of independent evaluation at the Asian Development Bank. Prior to ADB, Vinod Thomas served as director-general of the Independent Evaluation Group at the World Bank from 2006 to 2011.
Rob van den Berg
For 10 years Rob van den Berg was the director of the Independent Evaluation Office of the Global Environment Facility situated in the World Bank. As a visiting professor at King's College London and a visiting fellow at the Institute of Development Studies he has become more convinced than ever of the need to incorporate these safeguards, as this is essential for ensuring sufficient financial rates of return and sustainable development. He is the president of the International Development Evaluation Association.
