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Reuters
April 7, 2004

Activists urge World Bank to protect environment

WASHINGTON, April 7 (Reuters) - Human rights and environmental activists on Wednesday urged the World Bank to guarantee social and environmental protections when it funds projects to extract oil, gas or other natural resources.

"We've seen way too often the curious paradox that the countries with the most resources end up in the poorest conditions and in fact in war," said Jody Williams, who won a Nobel prize for her work against land mines.

World Bank President James Wolfensohn commissioned an independent review of the oil, gas and mining industries that was published in January. The review was headed by Emil Salim, former Indonesian Environment Minister.

The review, due to be discussed at World Bank meetings in Washington this month, called on the bank to ensure that revenues from natural resources go toward social, health, environmental programs and education.

Activists urged that recommendations in the review be implemented.

Joseph O'Keefe, manager of International Finance Corporation (IFC), the bank's private-sector arm, said the review's suggestion that the bank phase out coal and oil funding and allow residents and indigenous people the right to veto such projects, may be points of contention for stakeholders.

IFC spokesperson Ludwina Joseph noted that the Chad-Cameroon Pipeline Project includes an oversight committee made up of government workers and civilians. "It's completely groundbreaking. It's never happened before," said Joseph.

But activists said current environmental and social guidelines in World Bank projects do not go far enough.

"It's a positive innovation. The question is will it be enough to prevent misappropriation and misallocation of funds," Ian Gary, an advisor on Africa for the Catholic Relief Services said of the project in Chad.

The World Bank said on Wednesday it would respond to the review later this year.

The World Bank Group is comprised of several organizations owned by governments of member nations, which decide policy and loan disbursement. The organization provides support for such projects as building schools and improving utilities.

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