The World Bank Inspection Panel and the Forest Concession Management and Control Pilot Project Global Witness.

The World Bank Inspection The World Bank Inspection Panel and the Forest Panel and the Forest

Concession Management and Concession Management and Control Pilot ProjectControl Pilot Project

Global WitnessGlobal Witness

Brief History of Cambodia’s Brief History of Cambodia’s forest sectorforest sector

Early 1990’s start of Early 1990’s start of concession system.concession system.

Several hundred thousand Several hundred thousand rural Cambodians rural Cambodians dependent on the collection dependent on the collection of forest productsof forest products

Destructive logging in Destructive logging in pursuit of quick profits.pursuit of quick profits.

Over one million hectares of Over one million hectares of forest (10%) were lost to forest (10%) were lost to deforestation in 1990’s. deforestation in 1990’s.

Where did the money go?Where did the money go?

The Forest Concession The Forest Concession Management and Control Pilot Management and Control Pilot

ProjectProject Concessions can Concessions can

and will work in and will work in Cambodia!Cambodia!

But what about the But what about the ‘total system ‘total system failure?’failure?’ World Bank office, Phnom PenhWorld Bank office, Phnom Penh

The ComplaintThe ComplaintIf the logging concession companies’ management plans, which If the logging concession companies’ management plans, which received technical assistance from the World Bank, are accepted by received technical assistance from the World Bank, are accepted by the Government, and the companies start up their activities again, the Government, and the companies start up their activities again, there will certainly be violations even more severe than before on there will certainly be violations even more severe than before on villagers…If the companies operate, they will certainly cut resin trees villagers…If the companies operate, they will certainly cut resin trees again; if they don’t cut resin trees they won’t have any wood to cut.’ again; if they don’t cut resin trees they won’t have any wood to cut.’

Letter to the World Bank’s Inspection Panel from villagers living in the concession areas of Letter to the World Bank’s Inspection Panel from villagers living in the concession areas of Cherndar Plywood, Samraong Wood, Everbright and Pheapimex. January 2005Cherndar Plywood, Samraong Wood, Everbright and Pheapimex. January 2005

What the Inspection Panel said What the Inspection Panel said ……

‘’‘’The Panel finds that in the The Panel finds that in the project’s focus on concessions, project’s focus on concessions, other aspects that were important other aspects that were important to the Bank’s programme in to the Bank’s programme in Cambodia and to the Cambodian Cambodia and to the Cambodian government were largely ignored, government were largely ignored, or at least marginalised…In or at least marginalised…In particular, the project did not particular, the project did not seem to take on the key objective seem to take on the key objective of using the potential of forests to of using the potential of forests to reduce poverty’’.reduce poverty’’.World Bank Inspection Panel Report on the World Bank Inspection Panel Report on the FCMCPPFCMCPP

What the Inspection Panel said What the Inspection Panel said continued…continued…

Six key safeguard policies Six key safeguard policies contravened in planning and contravened in planning and implementation implementation Environmental Assessment (OP 4.01), Environmental Assessment (OP 4.01), Indigenous Peoples (OD 4.20),Indigenous Peoples (OD 4.20), Forests (OP 4.36), Forests (OP 4.36), Natural Habitats (OP 4.04), Natural Habitats (OP 4.04), Cultural Property (OPN 11.03) ,Cultural Property (OPN 11.03) , Project Supervision (OP/BP 13.05). Project Supervision (OP/BP 13.05). 

What NGOs said and did…What NGOs said and did…

Media and advocacy work aimed at BankMedia and advocacy work aimed at Bank Cancel the debtCancel the debt Personal accountabilityPersonal accountability Continued engagement in Cambodian forest Continued engagement in Cambodian forest

sector based on November 2005 letter to the sector based on November 2005 letter to the Cambodian government from the Bank.Cambodian government from the Bank.

Review of Bank approach to forestry globallyReview of Bank approach to forestry globally Re-think of anti-corruption policiesRe-think of anti-corruption policies

What the Bank said and may What the Bank said and may do…do…

‘‘Improving the Improving the management of forests, management of forests, land and other natural land and other natural resources is essential for resources is essential for the well-being of the the well-being of the Cambodian people and its Cambodian people and its economy, and the Bank economy, and the Bank should try to stay engaged should try to stay engaged to promote further dialogue to promote further dialogue and information disclosure and information disclosure to help build consensus for to help build consensus for the future.’the future.’ Paul Wolfowitz, Paul Wolfowitz, World Bank PresidentWorld Bank President

Was the Inspection Panel Was the Inspection Panel process a success?process a success?

Inspection Panel as an independent Inspection Panel as an independent ombudsman?ombudsman?

Cambodia – did anyone benefit from Cambodia – did anyone benefit from the process?the process?

Elsewhere in the Bank – are the Elsewhere in the Bank – are the ramifications wider?ramifications wider?

Next StepsNext Steps

Monitor progress in Cambodia with Monitor progress in Cambodia with forest reform.forest reform.

Continue pushing for a more Continue pushing for a more comprehensive Bank anti-corruption comprehensive Bank anti-corruption strategystrategy

Continue efforts to change Bank Continue efforts to change Bank approach to forestsapproach to forests