How Do Corporations Influence World Bank Lending?
In the September issue of the newsletter, Research Intern Irmak Ersoz explores the role of multinational corporations in World Bank lending and the manner in which corporate influence over loan disbursements can affect complaints in unpredictable ways. The article examines the influence of multinationals on complaint trajectories, particularly complaints closing "outside of process," and investigates whether IFIs' corporate relationships may be hindering access to accountability.
Research: The True Role of Project Contractors: The Influence of Corporations in World Bank Lending and Complaints
By Irmak Ersoz — Oct. 3, 2023
Private sector involvement in multilateral development bank (MDB) projects, both in terms of investment and implementation, undeniably affects the implementation of a project, influencing banks’ adherence to their own policies. This tends to manifest in unpredictable ways, leading to communities being impacted by higher-level decisions they may not be able to see. Accountability Counsel has been tracking and analyzing World Bank projects with corporate influence that result in complaints.
Noteworthy updates on Bank and IAM policy and practice
A new report on AIIB's Accountability Mechanism, the Project-Affected People's Mechanism (PPM) analyzes why after 5 years of operation and nearly USD 44 billion in AIIB funding, the PPM is yet to accept a single case. It finds that due to factors such as exclusion of co-financed cases from the PPM's mandate, weak implementation of disclosure requirements in financial intermediary projects, and issues around eligibility and independence in the PPM Policy, there is an accessibility crisis in the PPM that hinders accountability in the AIIB. It further provides recommendations for the upcoming PPM policy review that should result in substantial improvements in order to bring the PPM in line with international good practice.