Why Do Multilateral Development Banks Finance Repeat Offenders?
In this month’s edition of the Console Newsletter, Communities Fellow Sara Jaramillo examines why multilateral development banks (MDBs) continue to empower clients that have a clear history of violating safeguards and causing harm to communities. Through analyzing MDB financing of the Nepal Electricity Authority, as well as data found in project databases, the article argues that MDBs should strengthen their commitment to doing no harm by reviewing clients’ compliance record and requiring additional safeguard measures for repeat offenders.
By Sara Jaramillo — April 3, 2023
When faced with clients who have repeatedly failed to uphold threshold social and environmental policies, MDBs must make clear that any new funding is contingent on actively protecting communities from facing the risk of repeating past harms.
Noteworthy updates on Bank and IAM policy and practice
The proposed IFC/MIGA Approach to Remedial Action and the draft IFC responsible exit principles are still available for public consultation through April 13. The feedback gathered during the consultation process will be considered as the proposed IFC/MIGA Approach to Remedial Action and the draft IFC responsible exit principles are refined.