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World bank admits failure of its forest policy - Reuters

Bittu Sahgal (on e-mail) exhorts:

Read the following report carefully if you are worried about the future of India's forests.  It confirms what many of us have been saying for years, that the World Bank/FAO/UNDP combine is acting to strip Indian forests.

Anyone who has followed the World Bank's bloody trail over the years will have seen such apparently honest internal appraisals from time to time (remember the Wapenhan's Report?).   What generally follows is a massive public relations exercise designed to improve the Bank's image ("We are trying harder.").  This is normally done by invoking its many consultants and project beneficiaries, to act as World Bank apologists and press agents.

We should now question all the Indians who have profited by taking consultancy money from the Bank's Forestry Projects in one form or another.  They are the cutting edge of the World Bank's destructive impact on India.

Bittu Sahgal
Editor, Sanctuary Magazine,
602, Maker Chambers V,
Nariman Point,
Mumbai 400 021 INDIA
FAX: +91-22-2874380


REUTERS NEWS SERVICE

World bank admits to failure of forest policy

WASHINGTON - In a damning self-indictment of its decade-old forest strategy, the World Bank has admitted it has failed to implement its own policies at the expense of the things it was supposed to protect - forests and the poor. In an unusually frank internal evaluation report, the bank admitted its lending was flawed, failed to protect forests, failed to help the poor and admitted that the bank's abilities to monitor the effects of its lending was limited. In 1991, the bank adopted a forest strategy aimed at deflecting long-standing criticisms that the bank's activities had contributed to the alarming pace of global deforestation.

The nearly decade-old policy charged the bank with conserving tropical moist forests and planting trees to meet the needs of the poor. The bank also promised to monitor the impacts of its overall lending on forests. The report admitted that the 1991 policy was, "narrowly focused on 20 moist tropical forest countries and neglected other biodiversity-rich forest types that are even more endangered, more important globally, or more in need of conservation to meet the needs of the poor."

Critics inferred from the report that the bank, through its structural adjustment loans, had vicariously contributed to deforestation.  "They have been lending massively for the same economic policies that have been identified in the report as driving deforestation, without paying attention to the impact they were having on forests," Korinna Horta, an environment economist at the Environmental Defence told Reuters.

But, World Bank spokeswoman Caroline Anstey said the report should be seen in a positive light since it was commissioned by President James Wolfensohn to help him draw up a new forest strategy more in tune with the current situation. "The important thing is the report was called for by (Wolfensohn,) who recognised there needed to be a change from the 1991 policy," Anstey said. "The report concludes that the time has come for a new bank forest policy, better attuned to the needs of developing countries and the changing dynamic of the forest sector."

The report said that the poor were not a major source of deforestation and illegal logging, as the bank believed in 1991, but that demand for fuelwood for industry, timber for housing and international demand for hardwood were the main factors destroying forests.

The World Bank has often been criticised for lending for projects such as building dams which destroy the environment. In recent years the bank, led by Wolfensohn, has attempted to shake off that image through a series of alliances with environmental groups. But despite efforts to shake its tarnished image, the bank is still under fire. Critics have asked the bank not to fund part of the proposed oil pipeline between Chad and Cameroon because, they claim, the project will destroy rain forests and harm the livelihoods of people living along its route.

Horta said that while the bank appeared to be squarely facing up to its past failings, she remained sceptical that the bank's burgeoning bureaucracy can improve itself. The report also admits that the policy was only partially implemented and that the bank failed to properly help the poor, one in four of which live in forest areas. "Even in countries where forest lending is large, forests and their development are currently not an important element of the bank's assistance strategy for poverty alleviation," the report notes.

In a particularly damning assessment, the report said that the bank's policy's actually hampered lending which the bank should have encouraged. The bank's "cautious approach had a chilling effect on bank involvement in improving forest management in forest-rich countries that wished to use their forests for economic development. 

The report was written by the bank's Operations Evaluation Department, an autonomous group which reports directly to the bank's board.