Multilateral development banks use safeguards as conditions of their loans to deflect damages to communities and the environment that projects can cause, notably in transport, energy and urban services.
Without such mitigation, roads can harm habitats, dams displace communities and slum rebuilding hurt livelihoods. Two big shake-ups in development banking — a review of the World Bank’s safeguards policy and the arrival of two new lenders — could affect the strength and effectiveness of these shields for communities and habitats.
The entry of the BRICS’ New Development Bank and China’s Asian Infrastructure Investment Bank, alongside multilateral development banks like the Asian Development Bank, heralds more financing for infrastructure in Asia. This will be good for the region’s legendary economic growth, but it also raises the stakes for guaranteeing social and environmental defenses.
About the author
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.
