media advisory, 19 september 2003, dubai
Environmental Defense,
Friends of the Earth,
International Rivers Network
REPORT COUNTERS WORLD BANK'S "HIGH
RISK/HIGH REWARD" STRATEGY
NGOs Predict Increased Conflict Around
Risky World Bank Projects
As World Bank representatives gather in
Dubai for the 2003 World Bank/IMF Annual
Meetings, Environmental Defense, Friends of
the Earth, and International Rivers Network
today released a report in response to the
World Bank's new "high risk/high reward"
strategy in the water, forestry, and
extractive industries sectors. The report,
Gambling With People's Lives, analyzes the
World Bank's ability to manage social and
environmental risks in high-risk projects and
to learn from its past mistakes. The report
is available at
www.foei.org
"The World Bank is playing a reckless,
high-stakes game of roulette, where the poor
- and not the Bank - stand to lose big," said
Environmental Defense policy analyst Shannon
Lawrence. "While the Bank and private
investors are shielded from project risk, the
communities affected by its projects have no
such guarantees."
One of the Bank's most important
environmental reforms of the 1990s was its
more cautious approach to high-risk
infrastructure and forestry projects. This
policy is now being reversed. The World Bank
recently announced that it would re-engage in
contentious water projects such as large dams
in what it refers to as a "high risk/high
reward" strategy. In 2002, the Bank dismissed
its "risk-averse" approach to the forest
sector when it approved a new forest policy.
The World Bank is also considering support
for new oil, mining, and gas projects in
unstable and poorly governed countries,
against the recommendations of its own
evaluation unit.
"Big is beautiful again, and in spite of
their abysmal track record, megaprojects are
back in style at the World Bank," says Peter
Bosshard, policy director at International
Rivers Network. "The Bank's new high-risk
strategy will prolong the deadlock in
important sectors such as water and
electricity, and will block the development
of sustainable alternatives."
"Large dam, forestry, and extractive
industries projects funded by the World Bank
have displaced millions of people and
devastated the environment," said Carol
Welch, international program director at
Friends of the Earth. "The Bank's spotty
implementation of its inadequate safeguard
policies means that communities and the
environment will continue to face the
greatest risks in World Bank projects."
The report recommends, among other things,
that the World Bank repair the damage caused
by its previous high-risk projects, stay away
from new high-risk projects, and address the
human rights dimensions of its work. The
report will be presented on Monday, September
22 at the Dubai Convention Center, Room G-01
from 11:00 am-12:00 pm.
Contact:
. Peter Bosshard, International Rivers
Network, +1-510-848-1155 or +1-510-213-1441
(Dubai)
. Shannon Lawrence, Environmental Defense,
+1-202-746-9202
. Colleen Freeman, Friends of the Earth,
+1-202-783-7400 x121
Friends of the Earth International is a
federation of 68 environmental organizations
from all over the world that campaign on the
most urgent environmental and social issues
of our day, while simultaneously
catalyzing a shift toward sustainable
societies. Friends of the Earth US is the
U.S. arm of the federation.
(www.foe.org)
International Rivers Network (IRN)
supports local communities working to protect
their rivers and watersheds. IRN works to
halt destructive water development projects,
to promote sustainable alternatives, and to
change the policies of financial
institutions, governments, and the dam
industry.
(www.irn.org)
Environmental Defense, a leading US
nonprofit organization, represents more than
300,000 members. Since 1967, Environmental
Defense has linked science, economics, law
and innovative private-sector partnerships to
create breakthrough solutions to the most
serious environmental problems.
(www.environmentaldefense.org)
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