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World Bank modifies the conditions for lending to countries
Wednesday, August 5, 2015
Abu Dhabi - Sky News Arabic
World Bank announced, Tuesday, for social and environmental conditions of a new package Member States should Al188 met if they are to get loans from these major financial institution in the field of economic development.
The World Bank said that the adoption of these new rules after long years of negotiations constitutes a "major step forward" on the road to "protect the environment and the population."
However, the non-governmental organizations were quick to condemn the new measures, saying they represent a "serious return to the back."
The new rules package 10 key principles will apply for a trial period, including the requirement that the State seeking a loan from the bank to finance a project on the "approval" of the local population to get the project if it affects the circumstances of their lives.
The World Bank approved in early March that some development projects have led to the displacement of residents from their homes.
Under the new rules, the World Bank would be required from now on, for the first time, the borrowing countries to ensure workers' rights, particularly their right to form trade unions or join them in the conduct of collective bargaining.
The bank also amended the former proposal on environmental standards, which already angered many civil society organizations in July 2014.
Thus, the bank is asking for "compensation" when the cause of projects, funded by the damage to the environment, with emphasis on that this compensation can only be "another drug" and that it could be rejected "in some cases".
And it denounced the 19 non-governmental organizations, including Oxfam, the new terms, saying in a joint statement that these amendments "weaken" the criteria that financing mechanisms used in the bank's control.
The organizations said in a statement that the rules "will weaken considerably the protection of the populations concerned and the environment at the same time, at a time when the bank intends to engage in high-risk projects."
The World Bank is a sister institution the International Monetary Fund as it faces increasing competition from other financing institutions created by the emerging countries, particularly China.
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Wednesday, August 5, 2015
Abu Dhabi - Sky News Arabic
World Bank announced, Tuesday, for social and environmental conditions of a new package Member States should Al188 met if they are to get loans from these major financial institution in the field of economic development.
The World Bank said that the adoption of these new rules after long years of negotiations constitutes a "major step forward" on the road to "protect the environment and the population."
However, the non-governmental organizations were quick to condemn the new measures, saying they represent a "serious return to the back."
The new rules package 10 key principles will apply for a trial period, including the requirement that the State seeking a loan from the bank to finance a project on the "approval" of the local population to get the project if it affects the circumstances of their lives.
The World Bank approved in early March that some development projects have led to the displacement of residents from their homes.
Under the new rules, the World Bank would be required from now on, for the first time, the borrowing countries to ensure workers' rights, particularly their right to form trade unions or join them in the conduct of collective bargaining.
The bank also amended the former proposal on environmental standards, which already angered many civil society organizations in July 2014.
Thus, the bank is asking for "compensation" when the cause of projects, funded by the damage to the environment, with emphasis on that this compensation can only be "another drug" and that it could be rejected "in some cases".
And it denounced the 19 non-governmental organizations, including Oxfam, the new terms, saying in a joint statement that these amendments "weaken" the criteria that financing mechanisms used in the bank's control.
The organizations said in a statement that the rules "will weaken considerably the protection of the populations concerned and the environment at the same time, at a time when the bank intends to engage in high-risk projects."
The World Bank is a sister institution the International Monetary Fund as it faces increasing competition from other financing institutions created by the emerging countries, particularly China.
[You must be registered and logged in to see this link.]
