fPcN interCultural:

friends of Peoples close to Nature

IMF WTO & WHO, Dear friends, On July 22, the World Bank will celebrate its 60th birthday. That day will mark 60 years of failed policies, 60 years of misguided loans, 60 years of increasing debt, and 60 years of dubious development projects. July 22 will also be at the eve of a crucial decision at the World Bank. The groundbreaking Extractive Industries Review - which demands an end to all oil and coal financing - will be discussed by the Board of Directors. The board will decide whether to end Bank business as usual, which puts corporate profits before people and the planet.

World Bank Management has already let it be known that they intend to continue using billions of tax dollars to subsidize the oil, gas, coal, and mining industries. But it's not up to them. The final decision rests with our government representatives on the World Bank's Board. They need to hear loud and clear that the time for change is now.

Join the Global Day of Action on J-22 and call for the World Bank to:

- give communities the right to decide their own development path;
- stop investing in oil, mining and gas;
- respect human rights;
- exclude large dams from renewables initiatives;
- operate in full transparency;
- cancel 100% of impoverished country debt.

Suggestions for your local action include targeting your government or local World Bank offices with a banner hanging, marching, leafleting, street theatre, media work, bicycle demonstrations, and any other creative and effective non-violent actions you may think.

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BACKGROUND

The World Bank and oil, mining and gas: winds of change?

Following decades of world wide protest against the destructive impacts of large scale oil, mining and gas projects, of which mainly big corporations benefited, the World Bank decided to embark on a unique review of its operations. Three years of consultations, research and project visits within the framework of the Extractive Industries Review (EIR) led to a report that was published in December 2003. It suggests radical changes for World Bank practices and policies. However, World Bank management threatens to ignore most of these suggestions. A July 2004 decision will be a major test case for the Bank: is it ready to change or will it continue business as usual?

The debate over extractive industries in the developing world is often framed, particularly by international financial institutions such as the World Bank and International Monetary Fund, as a trade-off between environmental protection and economic growth. Increasingly, however, studies including the World Bank's own Extractive Industries Review, are concluding that not only are extractive industries not good for the environment, they are failing to produce economic gains for the poor. In other words, investing in the extractive sector has been shown to be inconsistent with the World Bank's goals of poverty alleviation and sustainable development.

In addition, there appears to be a link between extractive industries and debt in the developing world. Many oil-producing developing nations are also countries wracked with some of the worst external debt. "Six of the world's 25 most oil-dependent nations are classified by the World Bank as 'highly-indebted poor countries' (HIPC) - the most troubled category of states", according to an Oxfam analysis. The historical relationship between oil production and external debt, as well as contemporary examples of developing oil-producing nations, suggests that extractive industry development often perpetuates poverty and debt.

What did the EIR recommend?

The Extractive Industries Review recommended that the World Bank ask for the consent of affected communities before they embark on any oil, mining or gas projects. Furthermore, pipelines and mines should not be financed in countries whose governments are corrupt or untransparent, where there is armed conflict, or where human rights are not respected. This recommendation was repeated in a parallel report by the World Bank's own internal evaluation department. The EIR furthermore suggests that the Bank must protect areas of high biodiversity and ban oil and coal projects altogether. It also recommended a massive infusion of investment in renewable energy.

What does the World Bank propose in response?

The World Bank management's draft response is big on promises and small on commitments. It agrees with many of the principles of the EIR report, but does not explain how and when these will be transformed into policies and practices. The World Bank proposes a consultation process instead of a consent process, says it will 'consider' governance issues without explaining what that means, and announces a minimal target for renewable energy. The Bank management is determined to continue investing in oil and coal projects - even those which are designed to fuel Northern consumption - and defers the issue of human rights to other discussions, simply because the subject is too big. This is not good enough!

What do we want?

In the last week of July, the World Bank Board will meet for a crucial discussion on extractive industries. They should commit to clear and concrete measures in line with the recommendations of their own reports and the calls from communities around the world. The World Bank should phase out of oil, mining and gas, respect human rights and listen to the voices of the people it is supposed to serve. And to reduce the perceived need for cash strapped countries to drill and dig, the World Bank should immediately cancel 100% of impoverished country debt.

Act now! Join the Global Day of Action on the World Bank on J-22!

For more information visit: www.eireview.info
Contact us with your action ideas: janneke@foei.org

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50 Years Is Enough http://50years.org