Law Commons^™

Exiting The Disaster, Evading The Responsibility? Wadi Al-Qamar -- The Moon Valley, Suzan Nada

Perspectives

This essay explores a case that delivered no results for the complainants, where harm was not prevented, and where stakeholders who filed the complaint were not compensated. Investigated by the Compliance Advisor Ombudsman (CAO) of the International Finance Corporation (IFC), the Wadi al-Qamar case illustrates some of the limitations of accountability mechanisms in limiting the harms caused directly or indirectly by projects in which the International Financial Institutions (IFIs) invest.

Ending 30 Years Of Imf Exceptionalism: A Call For An Accountability Mechanism At The International Monetary Fund, Luiz Vieria

Perspectives

This year marks the 30^th anniversary of the World Bank’s Inspection Panel (WBIP or Panel), created as the result of grass-roots and international pressure on the Bank to address the well-documented negative impacts on marginalised communities of the Bank-financed Narmada dam and similar projects.

The establishment of the world’s first independent accountability mechanism (IAM) at the World Bank led to the creation of similar mechanisms at nearly all international financial institutions (IFIs), with the IMF an important exception. The establishment of the WBIP and other IAMs was a step-change in accountability, as previously IFIs were only accountable to shareholders …

The River Of Accountability Mechanisms: Then And Now, Suresh Nanwani

Perspectives

In 1993, the river of international accountability mechanisms (IAMs) commenced from its source – the World Bank Inspection Panel (The Panel). In its journey the river was fed by the tributaries of similar accountability mechanisms from other development institutions, including four regional development banks – the Inter-American Development Bank in 1994, the Asian Development Bank in 1995, the European Bank for Reconstruction and Development in 2003, and the African Development Bank in 2006. It also welcomed other entities – bilateral institutions like Japan Bank for International Cooperation (2003) and Proparco (2018), United Nations Development Program (2014) and other organizations like …

Thirty Years Of Accountability In International Development: Insights From The General Counsel Of The World Bank Group, Christopher H. Stephens

Perspectives

The creation of the World Bank’s Inspection Panel in 1993 was a groundbreaking moment in international development. The first accountability mechanism of its kind, it established a precedent for accountability in development that has been followed by multiple development banks and international financial institutions over the last decades. Today, the credibility of international financial institutions rests significantly on the mechanisms that they put in place to check their own behavior and the avenues they offer for affected communities and individuals to raise questions of harm related to the projects financed by these institutions. This essay is a reflection on the …

Legal Risk And Accountability In Development Finance: Lessons From Jam V. International Finance Corporation, Michelle Harrison, Shannon Marcoux

Perspectives

In a landmark decision in 2019, the U.S. Supreme Court ruled in Jam v. International Finance Corporation that international organizations like the International Finance Corporation (IFC), the private lending arm of the World Bank Group, can be sued in U.S. courts, ending the “absolute immunity” from suit that they had long claimed. The Jam lawsuit arose out of IFC’s gross mishandling of the Tata Mundra coal-fired power plant project in Gujarat, India, which has destroyed the livelihoods, environment, and way of life of local communities living in its shadow. The lawsuit, and especially the clash between IFC’s sweeping assertions of …

World Bank's Roadmap And The Inspection Panel's Human Rights Responsibilities, Juan Pablo Bohoslavsky, C.P. Chandrasekhar

Perspectives

The World Bank has been under pressure to devise a process for “evolving” its mission, operations, and resources, acknowledging that decades of engagement with low- and middle-income countries has resulted, paradoxically and contrary to its official mission, in a “crisis of development.” The Bank bluntly notes in the opening to its paper “Evolving the World Bank Group’s Mission, Operations, and Resources: A Roadmap,” issued in December 2022, “after decades of progress, growth and poverty reduction have stalled.” Indeed, this “crisis of development” threatens to unleash political instability around the world.

Fostering Resilience Within Ecological Civilization: Contributions Of Environmental Law, Nicholas A. Robinson

Elisabeth Haub School of Law Faculty Publications

My presentation will examine water, to illustrate the questions that Ecological Civilization presents. I shall address five points: (1) Often proposals for attaining Ecological Civilization raise issues relevant to environmental law, but do not examine the roles that environmental law can serve; (2) environmental law is essential to resolving unsustainable water management issues; (3) scientific studies indicate that trends in global environmental degradation limit the time available for implementing reforms to attain Ecological Civilization; (4) environmental legal systems for environmental impact assessment (EIA) can accelerate efforts to attain Ecological Civilization; and (5) For Ecological Civilization to ensure a firm foundation …

Reflections On The Role Of The Panel, Charles Di Leva

Perspectives

Over the past thirty years, the World Bank and the Inspection Panel have had a supportive relationship regarding the principle of accountability, particularly as applied to the field of development finance operations and the role and responsibility of the Bank as a multilateral public sector financial institution. This relationship has been apparent in at least three key aspects: i) following the Bank’s lead, many development institutions around the globe have taken steps to improve their own accountability and developed independent accountability mechanisms (IAMs) modeled on the Inspection Panel; ii) the Bank and other development institutions have been supporting the development …

Can Mediation Provide Remedy For Human Rights Violations? A Quest For Justice Using A Development Bank Accountability Mechanism, Natalie Bugalski, David Pred

Perspectives

This essay describes what it takes—the enormous tenacity, solidarity, courage and skill required—for communities and their civil society partners to seek recourse through the dispute resolution processes of development bank accountability mechanisms. While these mechanisms can be the crucial centerpiece of an effective strategy, their critical shortcomings mean that community advocates must often engage in Olympian advocacy gymnastics to achieve even a small measure of redress. The essay makes recommendations for strengthening community-centered accountability in development finance, so that remediation and prevention of harm become the norm, and not the rare exception.

The Critical Contribution Of Independent Accountability Mechanisms (Iams) To The Global Governance Paradigm, Owen Mcintyre

Perspectives

For several decades now, the environmental and social safeguard policies adopted by international financial institutions (IFIs), along with the related accountability frameworks provided by the independent accountability mechanisms (IAMs) established by each, have been at the very forefront of a global movement to extend good environmental and social governance values to the practice of international development finance. The complex of substantive and procedural standards of institutional conduct required under multilateral development bank (MDB) safeguard policies in respect of the assessment and implementation of bank-funded development projects or activities exemplifies the phenomenon of so-called “transnational” or “global” law - the rich …

An Increased Normalization Of Iams Faces Ground Realities: Lack Of Transparency Impedes Access To Iams, Hamid Sharif

Perspectives

The creation of the Inspection Panel at the World Bank has led to the emergence of a norm that international financial institutions (IFIs) must hold themselves accountable to project-affected people through independent accountability mechanisms (IAMs). AIIB as a 21^st century bank reflects this normalization of IAMs. As a new MDB, AIIB’s charter mandates creation of an oversight body that includes the independent accountability mechanism or the Project-affected People’s mechanism (PPM). The PPM is aligned with many features of IFI’s IAMs while incorporating some innovations.

The central question asked by civil society and board members across IFIs is why there …

Between Disruption And Legitimation Of Development: A Critical Perspective On The Inspection Panel And A Call For More Radical Thinking Within The Accountability Community, Dustin Schäfer

Perspectives

The essay explores the Inspection Panel’s (the Panel) conflicting role of providing accountability for negatively affected people while facing political limitations. The Panel has proven its potential to disrupt harmful development practices. However, by reproducing “dev-speak” it also continuously contributes to legitimizing the same assumptions of “how to do development”, and thus to the continuation of harmful development practices. This ambivalent effect is inherent to the Panel because of its politically inhibited and depoliticized (i.e. technocratic) environment. To overcome this long-lasting and structural condition will require critical examination of the concept of development and the role it plays in …

Rethinking 'What Counts' As Accountability, Jonathan Fox

Perspectives

The current accountability impasse suggests it may be time to rethink core concepts, as well as the field’s underlying theories of change. The idea of accountability is malleable, ambiguous — and contested. This fuzziness poses challenges for both theory and practice – how do we know what strategies bolster accountability – or whether accountability produces its expected effects? This think piece recognizes the challenge of defining ‘what counts’ as accountability, unpacks a longstanding theory of change - that sunshine is the best disinfectant - and considers some information-based reform initiatives to identify missing links in the causal chain between transparency …

Ending Violence In Development Finance Actions To Affirmatively Prevent And Stop Reprisals Against Rights Defenders, Gregory Berry

Perspectives

This Essay makes a case for stronger enforcement and implementation of zero-tolerance policies on reprisals within Development Finance Institutions. It argues that for DFIs to inculcate any hopeful vision of a just and inclusive transition to a sustainable future, they must begin by affirmatively cutting at the roots of reprisals. The essay particularly emphasizes two essential changes. First, Independent Accountability and Audit Mechanisms must be empowered to protect the safety of defenders by self-initiating investigations where there are credible concerns of reprisals, and by accepting anonymously submitted complaints. Second, DFIs must evolve to grow teeth for enforcing measures against retaliatory …

The Promise Of Collaborative Problem Solving In Enhancing Iam Effectiveness, Gina Barbieri

Perspectives

This essay analyses the effectiveness of collaborative problem-solving through mediation within accountability mechanisms, and considers ways in which western mediation principles should be enhanced to ensure fair outcomes given the power imbalance at play in development disputes. It also considers whether there is any scope to use problem solving principles to address questions of compliance, arguing for consideration of a hybrid approach to bolster tools available to IAMs, and so strengthen outcomes for communities.

Thirty Years Of Community-Centered Accountability In International Development Key Developments At The World Bank Inspection Panel, Dilek Barlas

Perspectives

Through the lens of important cases, this essay reflects on major developments that occurred at the Panel during the tenure of the author as the Executive Secretary of the World Bank Inspection Panel and shows how the Panel has evolved to improve accessibility, has influenced overall development policies, and has become a catalyst for institutional change. The essay observes that the Panel’s success has largely been due to its structural and operational independence, reporting as it does directly to the Bank’s Board of Executive Directors. However, there are challenges facing the Panel on certain issues, including most importantly its independence, …

Three Decades Of Seeking Elusive Remedies, Richard E. Bissell

Perspectives

Remedy is a topic to be approached with some trepidation in the area of accountability. Throughout three decades of proliferating International Accountability Mechanisms ( IAMs), remedy has been the issue least addressed by leadership. Most management and board members find it threatening, wherever a remedial action falls on the spectrum, from an apology for error to financial compensation. The pursuit of remedy builds on the demonstrated existence of harm, which is embarrassing at the least, and brings a focus on consequences and actionable steps for those people whose lives have been damaged as well as for environmental violations. This short …

Glass Half-Full Or Glass Half-Empty? Thirty Years Of Accountability At The Inspection Panel--The Impact Of Its Work And What The Data Tells Us, Ramanie Kunanayagam, Mark Goldsmith, Ibrahim James Pam, Serge Selwan, Richard Wyness, Ayako Kubodera, Camila Jorge Do Amarel, Rupes Dalai

Perspectives

“A stroke of a genius”, “a bold experiment in transparency and accountability that has worked to the benefit of all concerned”, “a precedent under international law”, and a “citizen-based accountability mechanism” are some of the ways in which close observers have described the World Bank Inspection Panel, which celebrated its thirtieth anniversary in 2023.

Good Governance And Civil Service Reform In Egypt, Ahmed Atef Labib

Theses and Dissertations

Governments in different states and even different governments within the same state may pursue different goals. To achieve their goals they apply administrative reforms, including civil service reforms, to adjust the government for achieving the intended goals. Pursuing different goals entails applying different administrative reforms. In the 2000s, the World Bank and the International Monetary Fund (IMF) suggested the Egyptian government, through loan conditionality, an administrative and civil service reform to promote economic growth based on their concept of good governance. In this paper, I argue that the suggested reform does not target economic growth but targets debt repayment. To …

Imf's Loan Conditionality: Negative Consequences In The Borrower Country And The Burden Of Responsibility, Sara Mohamed Osama Abdalla Atta

Theses and Dissertations

People often think that IFIs, such as the World Bank and the International Monetary Fund are prominent players in the global economy by providing funds to countries in need of development and sustainment of welfare, unfortunately these institutions can cause devastating effects in the borrower country. The harsh conditionality of the IMF plays a huge role in the negative economic consequences incumbent upon the borrower country. Meanwhile, the lack of legal remedies for private individuals suffering from the conditionality aggravates the consequences for these people. On the one hand, conditionality may strain the economy of the borrower country which leads …

Investor-State Dispute Prevention: A Critical Reflection, Lise Johnson, Lisa E. Sachs, Ella Merrill

Columbia Center on Sustainable Investment Staff Publications

With the rise of treaty-based investor-state dispute settlement (“ISDS”) which has taken place over the last two decades, a number of governments have adopted varying approaches to avoid those arbitration cases. Countries including Bosnia and Herzegovina, Colombia, Mexico, Mongolia, and Peru have pursued such initiatives, often with the support of intergovernmental organizations such as the United Nations Convention on Trade and Development (“UNCTAD”) and the World Bank.

In the context of discussions on ISDS reform taking place at the United Nations Commission on International Trade Law (“UNCITRAL”), some states have identified development and implementation of such ISDS-avoidance strategies and tools …

Rule Of Law, Neoliberalisme Dan Proyek Reformasi Hukum World Bank: Perspektif Critical Legal Studies, Syahriza Alkohir Anggoro

Jurnal Hukum & Pembangunan

The emergence of World Bank legal reform projects in promoting the rule of law has been successful to encourage third world countries to reform their legal aspects to help formulate market friendly policy. This article tries to question the concept of rule of law that is materialized in many World Bank legal reform projects by using critical legal perspective to analysis legal scholarship on the role of law in the context of development. It trying to present an alternative explanation of World Bank’s rule of law which we are hypothetizing as a neoliberal concept. World Bank’s rule of law are …

On The Issue Of Increasing The Position Of The Republic Of Uzbekistan In International Ratings And Indices, I. A. Xamedov

International Relations: Politics, Economics, Law

The article discusses measures to create a favorable investment climate, improve the business environment and improve the position of the Republic of Uzbekistan in the international Doing Business index.

International Financial Institutions And Their Human Rights Silent Agenda: A Forward-Looking View On The “Protect, Respect And Remedy” Model In Development Finance, Antonio Morelli

American University International Law Review

No abstract provided.

Contextual Accountability, The World Bank Inspection Panel, And The Transformation Of International Law In Edith Brown Weiss' "Kaleidoscopic World", David Hunter

Articles in Law Reviews & Other Academic Journals

No abstract provided.

The Rule Of Law, Legal Pluralism, And Challenges To A Western-Centric View: Some Very Preliminary Observations, Peer Zumbansen

Peer Zumbansen

Despite hundreds of “Rule of Law” projects at the World Bank and a host of research into the foundations and content of the Rule of Law, we are still nowhere near an altogether satisfactory definition. While the Rule of Law is repeatedly being referred to in ‘legal assistance’ and ‘law reform’ projects and lives as a guiding principle in constitutions around the world, we don’t seem able to settle on a commonly agreed-upon approach to its nature and institutional form. In this context, the Rule of Law provides an opportunity to engage critically with the differences in perception and bias …

Legal Instruments Of State Practice And International Initiatives Undertaken To Fight Corruption In The Banking And Financial Sector, N. D. Nodirxonova

International Relations: Politics, Economics, Law

In this article we analyze the legal aspects of leading international experience in countering corruption in bank and financial sectors. It must be noted that these issues have gained even more importance given the universal character of corruption related criminal activities. The trans-boundary character of this kind of crimes makes it significant to properly study and learn foreign expertise in the sphere. Having analyzed experience of various countries we have come up with relevant conclusions, regarding institutional base, legal tools, involvement of civil society actors, significance of transparency and etc.

Venezuela Undermines Gold Miner Crystallex's Attempts To Recover On Its Icsid Award, Sam Wesson

Loyola of Los Angeles International and Comparative Law Review

No abstract provided.

Original Nation Approaches To "Inter-National" Law (Onail): Decoupling Of The Nation And The State And The Search For New Legal Orders, Hiroshi Fukurai

Indiana Journal of Global Legal Studies

To elucidate the basic tenet of ONAIL, this paper is structured in the following way.5 The first section defines the nation and the state, as the misuse of these terms and related concepts has gravely obscured, distorted, and misrepresented the identity, role of law, geography, history, and reasons and causes behind conflicts and wars, regional struggles, refugee flows, genocide, human rights violations, and rapidlydegrading condition of natural environment and ecosystems. Terms such as the state, nation, and nation-state have been used interchangeably, despite the fact that their origins, geographies, histories, and relations to the role of law are quite distinct. …

Strengthening Of Uzbekistan Position In The Rating Of “Doing Business”, M.A. Berdikulov

Review of law sciences

this article is about large scale reforms in business sphere in Uzbekistan and its’ steps towards strengthening its position in World Bank “Doing Business” ranking. Economic reforms of 2019 in business sector and their positive consequences for businessmen have been discussed and analysed. Besides most of the normative legal documents adopted by the Head of the state – President and Government – the Cabinet of Ministers of Uzbekistan to improve the enterpreneural and investment climate in the country for internal and foreign investors have been considered and analysed. Some conclusions were made at the end of the article to improve …