RespondingResponding toto thethe WCDWCD Report:Report: AA ProgressProgress ReportReport fromfrom TheThe WorldWorld BankBank Cape Town February 25-27, 2001 AsAs oneone ofof thethe midmid--wiveswives ofof thethe WCD…WCD… AA progressprogress reportreport inin doingdoing whatwhat wewe committedcommitted toto dodo inin LondonLondon TheThe processprocess wewe havehave followedfollowed sincesince thethe launchlaunch ofof thethe WCDWCD ReportReport Internally: –the formation of a Bank Group-wide Task Force, with staff from all relevant sectors and regions –review and discussions with Senior Management – two (long) discussions with the Bank’s Board (the governments that own the Bank) Externally: –have followed up on the London commitment by having in-country discussions with the governments of seven of our borrowers Nepal Jordan China Laos Ethiopia Thailand Brazil 14 Asian governments participating in ADB meeting • Bangladesh • Indonesia •Pakistan • Bhutan • Kyrgyz • Philippines • Cambodia •Laos • Sri Lanka •China • Malaysia • Thailand • (India) •Nepal • Vietnam Have also heard from some in the private sector, NGOs and professional associations, who have sent letters with their views to Mr. Wolfensohn What have we heard from our borrowers? (As much about the World Bank as about the WCD…) The initial reaction of several governments was to “shoot the messenger” Who is the Commission ? Kader Asmal Lakshmi Chand Jain Donald Blackmore Joji Cariño Deborah Moore José Goldem berg Judy Henderson Dams and Development - Report of the World Commission on Dams Jan VeltropThayer Scudder Medha Patkar Göran Lindahl Achim Steiner After discussions: • all governments we met with acknowledged that the conflicts pre-date the WCD; • all retained concerns with the WCD Report *, but • many governments recognized that the WCD Report offers much that is useful... MessageMessage #1#1:: DamsDams areare essentialessential forfor growthgrowth andand povertypoverty reductionreduction • Universal agreement among our borrowers that dams have played and must play a central role in water and energy management, economic growth and poverty reduction • Every government consulted expressed concerns that the WCD Report understates the benefits, does not address the counterfactual and does not deal even-handedly with alternatives (where they exist) MessageMessage #2#2:: ThereThere isis universaluniversal acceptanceacceptance ofof thethe importanceimportance ofof thethe environmentalenvironmental andand socialsocial issuesissues highlightedhighlighted byby thethe WCD,WCD, andand allall governmentsgovernments reportreport onon markedmarked progressprogress inin practicepractice inin recentrecent decadesdecades HowHow environmentalenvironmental assessmentassessment hashas improvedimproved Decade % impacts anticipated ‘50s 17% ‘90s 65% HowHow socialsocial actionaction hashas improvedimproved The evolution of dam development practice 1940 Engineers 1950 + Economists 1960 1970 + add on EIS 1980 1980 + Environmentalists and sociologists 1990 + Affected people 2000 MessageMessage #3#3:: ThereThere isis strongstrong commitmentcommitment amongamong allall ofof ourour borrowersborrowers toto continuecontinue toto learnlearn andand improveimprove practicepractice ---- technical,technical, economic,economic, environmental,environmental, social...social... MessageMessage #4#4:: TheThe engagementengagement ofof thethe WorldWorld BankBank hashas mademade aa bigbig positivepositive differencedifference inin bringingbringing inin bestbest practicepractice This is what governments tell us (Brazil, China….) Many of the “best practice cases” in the WCD Report are in World Bank-financed projects MessageMessage #5#5:: GreatGreat concernconcern aboutabout thethe apparentapparent exitexit (prior(prior toto thethe WCD)WCD) ofof thethe WorldWorld BankBank fromfrom thethe damdam businessbusiness 1970s 1990s Total number of dams built 5500 4000 % in which World Bank involved 3.5% 1% Wide resonance among our borrowers with the sense of the post WCD editorial in the FT... … If the best social, economic and environmental assessments are undertaken ... governments have a right to build (dams). …..International financial institutions have a duty to support these projects. ….. A purpose of organisations such as the World Bank is to be an honest broker. Controversy is no excuse to wash their hands of dams. MessageMessage #6#6:: BroadBroad acceptanceacceptance ofof thethe WCDWCD corecore valuesvalues andand strategicstrategic prioritiespriorities Towards shared values, objectives & goals… • equity • efficiency • participatory decision-making • sustainability • accountability TurningTurning ConflictConflict IntoInto ConsensusConsensus SevenSeven StrategicStrategic prioritiespriorities •• GainGain publicpublic acceptanceacceptance •• AssessAssess optionsoptions •• AddressAddress existingexisting damsdams •• SustainSustain riversrivers andand livelihoodslivelihoods •• RecogniseRecognise entitlementsentitlements andand shareshare benefitsbenefits •• EnsureEnsure compliancecompliance •• ShareShare riversrivers acrossacross boundariesboundaries MessageMessage #7#7:: UniversalUniversal concernconcern amongamong ourour borrowingborrowing governmentsgovernments withwith thethe 2626 “guidelines”“guidelines” I: If the WCD II: If taken as a check list recommendations and of requirements to be guidelines are taken “not “complied with” and (as) a blueprint, but a “conformed to” then starting point for good are strongly opposed faith discussions” in by all the governments countries and elsewhere we have consulted (including financing agencies), then have already proved to be very useful MessageMessage #9:#9: GreatGreat concernconcern amongamong governmentsgovernments thatthat thethe resultresult willwill bebe “more“more conditionalityconditionality”” byby thethe WorldWorld BankBank andand others...others... Indigenous People Resettlement International waterways Natural Habitats Cultural resources Safety of Dams Environmental assessment Project preparation to the Board Same orlessdetailed Different different Significantly in WCD World Bank standard World Bank process is not yet complete, but is very unlikely that there will be new “laws” (and conditionalities) as a result of the WCD Report... • Developing countries unanimously reject the idea of “new conditionalities” by the MDBs •Concern with “new conditionalities” hampers discussions of the WCD Report • Once we “get the elephant out of the room” (no new conditionalities), then • there are a host of ways in which countries are anxious to engage with the many good ideas in the WCD Report, and to work with the World Bank (and others) in improving practice HowHow thethe BankBank plansplans toto buildbuild onon thethe WCDWCD ReportReport :: 1. The Bank will use it as a valuable reference to inform its decision making process when considering projects that involve dams. 2. The Bank will continue to support dams that are economically well justified and environmentally and socially sound. 3. The Bank will, upon request, support strategic planning processes by borrowers to evaluate options and alternatives, and will support borrowers in financing the priority investments emerging from such processes. 4. The Bank will not adopt the twenty-six WCD guidelines, but will review how the principles of these guidelines may be put into individual use in the context of specific projects. 5. The Bank will continue to strengthen implementation of its safeguard policies, use of consultation and disclosure of information for all projects including those with dams. 6. The Bank will undertake measures in the form of a Preliminary Action Plan to strengthen its own work (and its work with others) in the water and energy sectors and to improve the evaluation, implementation and operation of dams when they are the appropriate development option. 7. The Bank will continue to disseminate and discuss the WCD Report with its borrowers, recognizing its broad interest for development issues. Preliminary Action Plan ElementElement 1:1: WorkWork withwith borrowersborrowers inin movingmoving upstreamupstream ¾consider the findings of the WCD Report and the consultations with borrowers in the forthcoming Water Resources Sector Strategy ¾explore additional mechanisms for expanding support for borrowers in dealing with strategic “upstream” issues in water and energy planning and management ¾upon request, work with other development partners in helping strengthen national legal and institutional capacity for water and energy management ¾continue to support evaluation of structural and non-structural investments, including management, conservation and rehabilitation activities ¾continue to promote policy, institutional and technical measures to encourage conservation of energy and water and increase efficiency ¾continue to promote the use of consultation and disclosure processes as an integral element of energy and water options assessments ¾upon request, assist borrowers in taking into account the recommendations of the WCD Report in the specific situations found in individual countries and river basins. Preliminary Action Plan ElementElement 2:2: EffectivelyEffectively implementimplement thethe BankBank safeguardsafeguard policiespolicies ¾use strategic environmental and social assessments as a tool for evaluation of options at the national or river basin level ¾integrate use of environmental assessment and evaluation of social issues more effectively in project design processes ¾increase emphasis on evaluation