Interview with Ann-Kathrin Schneider, WEED

Extractive Industries Review:
“We place little hope in the World Bank”

Ms Schneider, the World Bank defined environmental and social standards some years ago. Have they changed the bank’s policies?
Right up to the 1990s the World Bank promoted mega projects in the infrastructure sector such as road-building in the Amazon Basin and dams in India. It was only because of ongoing criticism of NGOs, who put a spotlight on the impacts of this policy – human rights violations, and so on –, that World Bank reconsidered its position. Since the mid-1990s the World Bank has begun discussing social and ecological standards. The bank has clearly changed in both respects.
As a result, investment in large-scale infrastructure projects has halved. But over the last two years we have noted that the World Bank has watered down these standards.

How does that show?
The World Bank has recently signed up to a High Risk-High Reward strategy. A new fund is to promote high-risk large-scale projects from 2005 on. Another example of backing off from previous standards is the bank’s new forest policy. Since the mid-1990s, its focus was on protecting resources, but now the bank it is once again promoting commercial logging.

What are the chances for the World Bank adopting the recommendations of the Extractive Industries Review?
Based on task and composition, the World Commission on Dams was similar to the Extractive Industries Review. At that time, the World Bank did not implement the recommendations. The bank’s new resettlement policy as well as its water strategy are in conflict with the recommendations of the Dams Commission. Therefore we have little hope. First reactions of the World Bank management to the Extractive Industries Review also suggest that the bank has no interest in implementing the recommendations and opting out of promoting fossil fuels.

Taking this into account, will the report produce any result?
We believe that the report is emphasising important issues – such as the World Bank’s practice in terms of human rights –, which cannot simply be swept under the carpet. In our view, it would make sense to have UN human rights organisations monitor the World Bank's policy.

The Social Democrat-Green coalition government in Germany has repeatedly expressed itself in favour of a shift towards renewable energy sources. What do you expect of the Federal Government now?
We would like the government to be active in forming a “coalition of the willing” for implementing the recommendations within the World Bank. Only then would there be a chance for them to shape the bank's operations. But that would require very robust lobbying by the German government, which, for the time being, I don’t see happening. It would be a hugely important signal if an organisation with the esteem of the World Bank would stand up for an international change on energy policy.