ESPM 169: International Governmental Organizations and the Global EnvironmentFacilityOctober 1 2002Big Points:1. International Governmental Organizations and their role2. Funding international environmental politics - capacity building - GEF1. IGOs - examples and roles - UN, world bank, IMF, WTO - comparing IGOs: functions, funding, voting, size, legal capacity (decision-making, dispute resolution, etc.)2. Money long time to connect international aid programs with environmental issues - e.g. policies of world bank, IMF3. World Bank and IMF- The WB has historically operated more like a fund, and the International Monetary Fund more like a bank- Both do crisis intervention - WB more policy, rural development oriented- IMF: created as part of the post WW2 international economic system, to supervise the international monetary system, and engage in medium term lending to countries experiencingtemporary balance of payments difficulties (role in fixed exchange rate system - undermined by shift to floating exchange rates in 1973 - found its role again after the debt crisis of the late1970s, as countries had to be rescued from bad loans from commercial banks) - members deposit money, therefore like a bank - now spearheading the neoliberal revolution – conditionalities debt crisis as catalyst of changing role: move into restructuring, in particular, micro level restructuring, not just macro (so, privatization as well as balance of payments and money supply adjustment) restructuring imposes heavy adjustments on recipient countries, and these costs are highly uneven with respect to environment, poor, women IMF remains fairly impervious to demands that it takes environmental and social concerns directly into account currently fairly chagrined- World Bank: makes loans and channels aid and development assistance from DCs to LDCs - especially known for funding large scale development projects - has provided c. $400bn in loans to LDCs and economic institutions, plus c. $100bn via the International Development Agency (zero or low interest) - part of a set of MDBs - Asian, Inter-American, African, European (the set to which the US belongs) it has of necessity been dragged kicking and screaming into the environmental arena.The World Bank in More Depth - lends money, imposes structural adjustment2- International Bank of Reconstruction and Development - post WWII reconstruction role - International Development Association - also: investment guarantee organization and International Finance Organization: which make loans and deal with private sector actorsIBRD: lends at the market rate, funds itself through investing on international financial markets, accounts for roughly 4/5 of WB lending backed by guarantees from member countries (shareholders), who gave initial capital, and have refinanced, according to their income. - this allocates votes: each country has an Executive Director US, Japan and EU control over half the vote in the WB and most MDBs - US has 16.52% of the vote - lends money in environmentally critical sectors: Energy and power, transport, agricultureIDA: Lends at zero or low interest; funded by donations from member countries- funds development projects FY01 Top Ten IDA BorrowersCommitments $millions Ethiopia 667 Vietnam 629 India 520 Pakistan 374 Uganda 358 Kenya 350 Bangladesh 280 Madagascar 268 3Senegal 255 - Has come under heavy criticism for:failing to examine environmental and equity implications of the projects it financesfocus on export led growth and technocratic solutionsdebts - HIPCs - highly indebted poor countries (the 41 HIPCs only pay on average 40% of their debt SERVICE obligations on an annual basisPressures from NGOs, Exec. Directors, US Congress (Barney Frank)“Good, Bad, and Ugly” projectsroad building in Amazon: Polonoroeste project in Brazilc. $1bn loans to India’s coal industryrelocation projects in IndonesiaNarmada Dam, Three Gorges etc.1987: The Bank responds, creating an environment department(in 1970 had created Office of Environmental Advisor) - makes policy recommendations - oversees GEF, along with UNEP - environmental subdivisions for each of its 4 regional offices - environmental impact assessments and review processes4- Herman DalyMorse Commission, appointed in 1991 to investigate Narmada Dam - report HIGHLY critical1993: Created an independent appeals panel (the Inspections Panel) that allows citizens adverselyaffected by bank projects to file claims regarding Bank policies etc.4-fold agenda: - stewardship: help countries develop environmental priorities and strategies - mainstreaming - safeguards - global environment: GEF, WCDStaffing: a handful before 1990 to 70 in 1990 and 300 in 1995. Leveled off at 250 in 2000 (in line with cutbacks all round the Bank) - funding problematic: relies on cumbersome "charge-back" system, whereby country program units contract for environmental staff time - thus fragmenting environmental work, damaging staff morale, reducing ability to do cross-cutting workEnvironmental Sector Total Lending (IBRD and IDA):1996: $882.7m1997: 246.71998: 902.1 lending has focused on the "brown" issues, aid on the "green" (resource management) has pulled out of several controversial projects, tried to do good on several others - coastal zone management in China, Rondonia national park and resource management in Brazil, Arun IIIhydroelectric dam project in Nepal continued pressure from NGOs and donor nations to improve transparency and accountability - need to mainstream environmental issues5- has done better globally - i.e. GEF4. The GEFwww.gefweb.orgIn 1990: GEF set up as an experimental program to supply funds to LDCs - grants –or very favorable terms – for projects with global benefits. - in response to demands for aid in order to fulfill international environmental commitmentsGermany and France: suggestedWorld Bank: fundedUNEP and UNDP administered15 member Scientific and Technical Advisory Board an unusual example of collaboration between UN agencies and WB clearly a very important project and institution: has it lived up to its potential?4 priorities:1. protection of the stratospheric ozone layer2. limiting emissions of greenhouse gases3. preservation of biological diversity4. protection of international waters  Now, also land degradation and POPs6First phase: July 1991 – July 1993 - allocated $750 million to projects in (potentially) 25 countries: 80%