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Saving What Remains
Intergovernmental Institutions
Until recently the concept of sustainable development was foreign to the principle organizations of funding development
projects, the World Bank and the International Monetary Fund (IMF). The World Bank is a multilateral development
bank which lends money to help countries develop economically through financing infrastructure and new industries.
The World Bank funded numerous projects that resulted in the destruction of rainforests.
The bank has traditionally funded "mega-projects" because they are easier to administer than a number
of small projects. Because of the size of these projects, World Bank loans to developing countries are usually
substantial, sometimes in the billion dollar range, adding further debt pressure. In 1987 the bank granted loans
exceeding US$15 billion to tropical countries. Some developing countries lack heavy equipment industries so a portion
of the loan is often returned to the contributing countries in the form of payments for industrialized products
and materials.
The influence of the World Bank is powerful, and other organizations follow their lead sponsoring similarly destructive
projects. The bank primarily used economic rate of return as its means of selecting projects, and virtually ignored
the social and ecological costs. The result has been many socially and environmentally damaging projects like the
Brazilian Tucuri Dam, which displaced 25,000 people and submerged 900 square miles of rainforest; the Polonoroeste
road-building project that promoted the colonization of the rainforests of Rondonia, Brazil, by one million peasant
farmers; and the Indonesian transmigration program.
However, in recent years, the World Bank and such organizations have designed a number of useful and successful projects
that use the rainforest sustainably, while promoting economic returns as well. Today these institutions staff environmental
consultants to raise concerns over the impacts of new projects.
The Global Environmental Facility (GEF), established in 1990 by the World Bank, UN Environmental Program, and UN
Development program, has committed hundreds of millions of dollars to setting up national parks, promoting sustainable
forestry, and establishing conservation trust funds in developing countries. In August 1994, the World Bank inspection
panel was established as a independent body to create an independent legal mechanism for individuals and organizations
whose interests are adversely affected by bank-backed projects. Through it, investigation can be conducted to correct
mistakes and ensure the bank enforces its own policies. The panel was put to the test in 1995, for the first time,
when Latin America challenged the world bank project, Planafloro, a loan of US$167 million to Rondonia, Brazil.
They cited mismanagement and social/environmental degradation from a previous loan as their reason for submitting
their claim. In 1996, the World Bank upheld a loan to Papua New Guinea after it failed to conform with its timber
regulations (although the bank has since granted the loan). In 1999 the World Bank weakened the panel.
The World Bank is currently wooing loggers to participate in sustainable forestry projects. The implementation
of these and future reforms may prevent the bank from sponsoring further Tucuri-scale projects. Environmental reform
of the World Bank lies in the hands of the developed nations since they control the majority of the votes. The
member-nations vote on what projects to finance and therefore have control over World Bank activities.
The World Bank is increasingly funding small, community projects that more directly benefit the local economy and
are often less environmentally destructive. Because decisions on made on a local level, projects can be better
adapted to the local conditions.
In June 1997, WWF and the World Bank announced a global alliance for forest conservation and sustainable use. The
plan is to protect 10% of each of the world's major forest types by the year 2000 by establishing large areas of
forests under "real" sustainable management. In December of 1997, as part of the alliance, the Brazilian
government announced its plan to protect 10% of the Amazon by 2000. The alliance looks promising because it forces
countries to live up to their conservation commitments or risk their standing with international financial institutions.
Such alliances between groups with different constituents are vital to future conservation efforts.
Intergovernmental Institutions
Involved in Rainforest Conservation
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