The environmental and social impacts of international financial institution (IFI) projects and programs are among the most controversial aspects of these publicly-backed development institutions. Deforestation caused by road building through tropical rainforests, forced resettlement due to mega-dam projects, social dislocation from macro- and sectoral economic reform programs are just some of the past and present impacts of IFI financing that have attracted international attention and advocacy.
Many critics have charged that past lack of attention to environmental and social impacts has led not only to social hardship and ecological destruction, but has also contributed to weak overall development effectiveness of MDB lending. Past development doctrines based on the premise “grow now, fix it later” have been widely discredited. Environmental and social impacts need to be thoroughly identified and avoided through rigorous assessment at the earliest stages of MDB project and program planning.
The promotion of transparent, accountable and sustainable environmental and social policies at the MDBs is at the heart of BIC’s mission. BIC’s involvement in this area includes engagement with key policy review processes at the institutions, such as the IFC’s Performance Standards, and facilitation of affected community engagement with MDB-funded projects impacting their lives and livelihoods.