The World Bank
Washington, D.C. 20433
U.S.A.

JAMES P. BOND
Director, Mining Department

October 18, 2001

Mr. Stephen Kretzmann
Institute for Policy Studies
733 15th Street, N.W.
Suite 1020
Washington, D.C. 20005

Dear Mr. Kretzmann,

Thank you for your letter of October 8, 2001, addressed to Mr. Wolfenshon. I am responding on his behalf and would appreciate it if you could kindly forward this letter to all signatories of Ms. Wysham’s letter.

Your interest in the review of World Bank Group activities in the extractive industries is appreciated. You have raised a number of issues in your letter, most notably concern about the consultations planned by the Extractive Industries Review. Given the wide variety of opinions and experiences with regard to extractive industries throughout the world, we
wanted to ensure that the review process would be fair, inclusive, and transparent. Thus, we designed the entire consultation process such that it would be led by an independent outsider, and I am grateful Dr. Emil Salim has kindly accepted to undertake this very important assignment. The independence of his work is essential to ensuring the integrity of the consultations. In this spirit, Dr. Salim is at full liberty to design his own workplan, select and assign experts, and reach out to groups and individuals in whatever manner he chooses.

We have tried to ensure a sufficient level of funding for this effort. The financing for consultations includes both the cost of meetings and travel expenses so that participation by a wide range of groups and individuals can be facilitated. Further, the financing should cover any additional research, experts, or community visits that may be required.

Our goal is to have a process that produces conclusions that are relevant for, and applicable to, the operations, policies, and staff of the World Bank Group. Therefore, we have delegated some of our own staff to support the consultation. These individuals have been selected on the basis of their expertise in areas of governance and environment, but also on the basis of their independence from normal internal lines of reporting. While they are located in Washington, DC to help ensure that Dr. Salim is informed of and can take into account any recent developments, they report directly to him and
will continue to do so for the duration of the review.

Given the mission of the World Bank Group – to contribute to sustainable growth and poverty reduction – we believe that findings on the relationship between the extractive industries and development should be an essential part of this review. Development, of course, means economic growth, but it also means security, opportunity, and empowerment. I trust Emil will guide us all along the right path here, and find the best mix of experts on the
one hand and individuals and groups with direct experience regarding World Bank Group projects on the other hand.

Finally, you raised the issue of whether adequate time has been allotted. Here, we have tried to strike a balance. Millions of poor people in nations such as Peru, Madagascar, Nigeria, China, and Russia are directly or indirectly affected by the way the World Bank Group works with respect to extractive industry projects. For these people, every day counts. Scores of others may be affected by future projects. It is my hope that the task of obtaining and understanding the experiences and views of all relevant groups can be accomplished within a year. For our part, we stand ready to help make the review possible within this time-frame.

I appreciate your letter, as it demonstrates that quite a number of thoughtful, concerned people are ready and eager to participate in the consultation. Let me reassure you that, if the review determines that certain policies or programs have detracted from our goal of poverty reduction, we are committed to implementing changes to redress those problems. Therefore, we share your view that the consultation process is of paramount importance. I encourage you to join us in this endeavor.

Sincerely yours,

James Bond

Cc:

Johan Frijns
Friends of the Earth International

Keith Slack
Oxfam America

Jorge Acosta Arias
Centro de Dererchos Económicos y Sociales
Ecuador

Nnimmo Bassey
Environmental Rights Action
Nigeria

Frances Carr
Down to Earth:
The International Campaign for Ecological Justice UK

Paul de Clerk
Milieudefensie/FoE Netherlands

Ophelia Cowell
TransNational Institute

Delphine Djirabe
CAPDHR
Chad

Jozsef Feiler
CEE/ Bankwatch Network

Pamela Foster
Halifax Initiative Coalition
Canada

Paul Horsman
Greenpeace International

Gerardo Honty
CEUTA / Uruguay

Manana Kochladze
Green Alternative
Georgia

Shanna Langdon
Project Underground, USA

Lily La Torre López.
Grupo de Trabajo Racimos de Ungurahui
Perú

Ikuko Matsumoto
Friends of the Earth Japan

Carlos Portugal Mendoza
Grupo de Investigaciones Económicas ECO
Peru

Bineet Mundu
Delhi Forum,
India

Mahalakshmi Parthasarathy
Mines, Minerals & People
India

Miguel Palacin Quispe
Coordinadora Nacional de Comunidades del Perú Afectadas por la Mineria

Isaac Rojas
Coecoceiba / FOE Costa Rica

Heffa Schuecking
Urgewald
Germany

Atossa Soltani
Amazon Watch, USA

Emilie Thenard
Center for International Environmental Law
USA

Antonio Tricario
Campagna per Riforma Della Banca Mondiale
Italy

Ka Hsaw Wa
EarthRights International, USA / Thailand

Carol Welch
Friends of the Earth US

Alex Wilks
Bretton Woods Project

Bcc: Bond (CMNDR); Van der Veen; Weber-Fahr (CMNPO); Kaldany
(COCDR); Armstrong (COCDR) Mansouri (EXC); Leon (PSIVP).