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Publication / 18 June 2024

Displaced in name of development

For public development banks that see it as their mission to fight poverty, you would think that the way they finance infrastructure, such as power plants or dams, would involve the resettlement and full economic rehabilitation of the people affected.

In reality social and environmental safeguards policies in place for the protection of people and the environment far too often are treated as add-ons.
  
You as well might expect that safeguards policies that do not lead to environmental and social results on the ground for the people and communities that are the intended beneficiaries of development projects, would be tightened.
  
Both ENDS over two decades has been following safeguards reviews at the various banks, and time after time instead found that latest drafts for policies to protect the environment and people's livelihoods looked weaker than the existing policy.
 
This policy brief uses the ADB review of its 2009 environmental and social safeguard policies as the most recent example of this trend over time.
  
The safeguard policies that international financial institutions have had in place for several decades once were designed to guarantee certain standards of environmental, social and gender protection in projects, even when these protections are not provided in national laws of host countries. Development banks over time tend to regress concerned resettlement of populations, partly due to the fact that client governments and companies prefer fewer strings attached.
  
Two cases from Indonesia, that are critically followed by Both ENDS partners Just Finance International and the Koalisi Pemantau Pembangunan Infrastruktur Indonesia, illustrate that the social and environmental protections are nor adequately provided by safeguards, neither by national law or corporate regulations.
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