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28 november 2001
leaked documents show oecd export credit
group fails to meet environmental demands of
its own ministers, g-8 leader
Environment, labor and human rights groups
today assailed the OECD Export Credit Group
(ECG) for failing to meet its deadline to
complete mandated environmental reforms set
by civil society, OECD Ministers and G-8
Leaders. The OECD ECG has for years been
under orders to negotiate adequate
environmental reforms by 2001. Yet, a leaked
document indicates that by its final meeting
of the year this week the body has fallen far
short of expectations.
“For years the OECD Export Credit Group
had notice from on high that it is way
behind the international community on
environmental and social norms for
international financial institutions. And
now it has squandered the opportunity it
had to catch up with the modern world,”
said Douglas Norlen, from Pacific
Environment in US and the Export Credit
Agencies-Watch Network.
Though the national Export Credit Agencies
(ECAs) in the OECD Export Credit Group are
little-known, they facilitate $400-$500
billion in exports and investments going to
developing countries and transition
economies.
“These agencies are coming under
increased scrutiny due to their harmful
impacts globally and their lack of
environmental and social safeguards,”
said Sébastien Godinot, from Friends of
the Earth France.
A leaked OECD document, entitled “REV6,”
indicates a failure by the Export Credit
Group to meet mandates for the adoption of
basic environmental policies comparable to
other internationally recognized, publicly
supported multilateral finance agencies such
as the European Bank for Reconstruction and
Development or the International Finance
Corporation (IFC), which is part of the World
Bank Group. These include advance disclosure
of environmental impact assessments and other
environmental information; consultation with
local affected communities; quantifiable
environmental performance requirements and
adherence to standards to avoid corruption or
bribery. Another leaked document, an internal
transcript of a statement from the head of
the IFC, backs up this contention:
“ECAs maintain the status quo, they
continue to spend public funds to
facilitate private sector projects that at
times public financial institutions might
not finance – these are projects that could
create difficulties under our
environmental, social and disclosure
policies, procedures and guidelines. The
result is an uneven playing field that at
times places IFC at a disadvantage…For
those reasons, the NGOs’ position resonates
with me,”
said Peter Woicke, Executive Vice
President of the IFC.
“Mr. Woicke’s remarks show that the OECD
Export Credit Group’s refusal to respect
internationally recognized norms is
emblematic of their increasing isolationism
from the rest of the international
financial community,” said Antonio
Tricarico, from Eyes on SACE Campaign in
Italy. “The OECD ECG has enshrined the
culture of secrecy and export promotion at
any cost that breeds the project debacles
and corruption that we have seen throughout
Africa, Asia and Latin America,”
said Aaron Goldzimer, from Environmental
Defense in US.
Ironically, the US has threatened to block
“REV6”, holding out for stronger
environmental policies at the ECG; and the
German Government has been the country most
resistant to real environmental reform. This
causes some political observers to label the
scenario a “reverse Kyoto,” wherein Germany
attempts to blame the US for once again
rejecting an environmental agreement. But
this time for the right environmental reasons
and Germany is the one defending global
polluters.
“The obstructionism of Germany's Export
Credit Agency, Hermes, in these
negotiations betrayed the Schroeder
government's green politics and undermines
Germany’s pro-environment image in other
international arenas,”
said Regine Richter from URGEWALD in
Germany.
“The only government still opposing the
draft is the US. NGOs are hopeful that they
will not sell out,"
said Jon Sohn, from Friends of the Earth
International. NGOs believe that little
progress will be made so long as ECAs are in
charge of negotiating their own reform.
“It’s no secret anymore that ECAs are
completely environmentally retrograde;
that's why G-8 leaders have for years
issued mandates demanding their reform.
REV6 is a perpetuation of the status quo,
and Germany’s intransigence shows that it’s
just the worst of a bad bunch,”
said Heike Drillisch from WEED in
Germany.
“Letting ECAs negotiate their own
policies on environmental performance and
transparency is like letting crooks write
laws on corruption,” said Nicholas
Hildyard, from The Cornerhouse in UK.
“Until higher political levels take
responsibility for enacting meaningful
reforms, the Export Credit Group will
continue to be a stain on the reputation of
the OECD.”
For updated press information about the
campaign to reform Export Credit Agencies see
www.eca-watch.org
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