BIC comments on ADB safeguards 2nd draft

4 December 2008 | Washington, DC

The 2nd draft, contrary to Asian Development Bank President Kuroda’s standard-setting public assertions that no weakening of the policy would occur, represents a significant dilution of the Bank’s existing safeguards.

In April 2008, BIC provided extensive commentary on the first Consultation Draft of the Safeguard Policy Statement of October 2007. Our comments emphasized two themes. First, we expressed disappointment that the Asian Development Bank (ADB) had not used the SPS process to help define the next generation of best environmental and social practices for its peer development finance institutions. We noted that the Consultation Draft did not improve upon the existing standards of peer institutions in any notable way, and frequently adopted policies that lag far behind those of its peer institutions. Second, we noted that the Consultation Draft made little effort to align ADB policies with relevant international conventions, codes, action plans, soft law instruments, and sectoral ―best practice standards regarding economic and social development and environmental protection.

We appreciate that the second draft strengthens ADB’s policy commitments in a number of areas. But for the most part, our concerns about the Consultation Draft have not been adequately addressed in the current version. Like the Consultation Draft, the current Draft seems to aspire only to an ad hoc harmonization with some of the policy commitments of ADB’s peer institutions. It continues to fall short of their environmental and social standards in a variety of areas, and does not adopt any standards that are more protective of environmental and social values than its peer institutions. Moreover, the ADB’s proposed approach to a Country Systems Strategy continues to introduce significant risks that standards will be diluted further.

Similarly, the current Draft remains generally heedless of the broad range of international legal norms and best practice standards regarding economic and social development and environmental protection. It generally fails to incorporate or explicitly reference these internationally agreed upon principles, objectives, commitments and standards.

BIC's full comments are available at: BIC Comments on 2nd Draft ADB Safeguard Policy Statement