By Andrew Hanauer
The World Bank just announced that it did not properly monitor resettlement projects connected to World Bank-funded development programs. The news agency Reuters reported that the Bank "had no idea how many people may have been forced off their land and lost their jobs due to its projects in developing countries, and whether these people were compensated fairly and on time."
This announcement is a reminder of the urgency of implementing responsible lending and borrowing principles at international financial institutions like the World Bank and International Monetary Fund. Responsible Lending and Borrowing is a key component in addressing poverty, protecting poor communities from unsustainable debt burdens, harmful loans to repressive regimes and the unintended consequences of large development projects. Jubilee USA is at the forefront of promoting responsible lending and borrowing and played a significant role in developing the United Nations Conference on Trade and Development's (UNCTAD) major report on the topic.
Development projects that displace whole communities are a perfect example of the problem. The World Bank's internal auditor found that the Bank's projects weren't directly linked to intimidation and harassment of evicted residents, but that the Bank didn't plan to properly mitigate risk. Lenders, like borrowers, have a responsibility to ensure that their loans do not bring harm to a community. As the World Bank announces plans to address the problems, Jubilee will continue to advocate for enshrining responsibility in the lending practices of major financial institutions.
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