What do the safeguards do?
The safeguard policies establish mandatory standards and procedures that the borrowing government and the Bank must follow in preparing and implementing Bank-financed investment projects. For example, the environmental assessment safeguard requires that a project's potential impacts must be analyzed and that affected communities must be consulted before the project is approved.
Why are the safeguards important for civil society groups?
The safeguard policies establish minimal procedural rights and important opportunities for participation and access to information. Civil society groups have use the safeguards to alter project designs and the extent of social and environmental impacts as well as to secure better project benefits for communities. When the Bank or the borring government fails to comply with any of the Bank's policies (not only safeguards), communities can lodge complaints to the Bank's independent Inspection Panel.
Safeguards as leverage
The Bank's safeguards provide critical leverage points for local communities. Safeguard obligations - such as the types and levels of compensation that mus tbe provided to local communities - are written into loan agreements, converting Bank policy into a legal obligation of the borrower. Where local authorities are reluctant to uphold these commitments, communities can turn to the Bank as another means of applying pressure to assert their rights.
Do the safeguard policies apply to all the Bank's Operations?
The Banks safeguard policies only apply to investment projects - such as the construction of public works, industrial development schemes, agriculture programs or natural resource extraction. They do not apply to the Bank's policy lending or reform of national laws, regulations or institutions, even though policy reforms can cause significant social and environmental impacts. The Bank has developed a separate, quite weak policy regarding social and environmental reviews of policy loans.