The Inspection Panel
In 1993, the World Bank became the first multilateral development bank to establish an independent body with oversight over the Bank’s operations. This mechanism, known as the Inspection Panel, was put in place by the Bank’s Board of Directors as a response to the criticism the institution faced over its funding for road projects in tropical rainforests and dams in highly populated areas. (See Part 2 box: “Investing in Infrastructure: Inroads into the Amazon.”) The Inspection Panel is a three- member body with a permanent secretariat, housed at the Bank’s headquarters in Washington, DC. The Panel receives and investigates eligible complaints from (any two or more) people who feel they have been or could be harmed by any activity financed by the World Bank (IDA or IBRD), because of a violation of the Bank’s own policies or procedures. The Panel does not have jurisdiction over projects funded through the private sector arms of the World Bank Group – the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). For harms related to their operations, another mechanism was created.
The Compliance Advisor Ombudsman
With growing public concern about the negative impacts of investments supported by its private sector arms, in 1999 the World Bank Group established an Office of Compliance Advisor/Ombudsman (CAO) for oversight of the IFC and MIGA. Whereas the Inspection Panel only investigates whether the Bank has violated its own policies, the CAO has a broader mandate. In addition to examining the compliance of IFC and MIGA projects with the institutions’ policies and procedures, the CAO also plays a problem solving (ombudsman) role and an advisory role to IFC/MIGA management.
Although both the CAO and the Inspection Panel are part of the WBG and physically located within the institution’s headquarters, they are both considered to be independent because they are not connected to the management of the Bank, IFC or MIGA. The Inspection Panel reports to the World Bank Board of Directors; the CAO reports directly to the World Bank President.
Both the Inspection Panel and the CAO can only investigate and offer corrective actions for lapses in compliance on the part of the WBG. They have no authority over actions of the Bank Group’s clients, i.e. borrower governments or private companies. This limitation means that the mechanisms may not fully address the needs of some complainants, since the local implementing agency, be it a government or private sector company, should also be held accountable for harms to people and the environment.
See BIC's Accountability at the IFC & MIGA webpage for more information on the CAO.
For more detailed information about how the mechanisms work and the pros and cons of using them, see BIC's Tools For Activists.
Information on How to File a Complaint.