Old whine in new bottle
The International Finance Corporation (ifc), the private sector arm of the World Bank, has recently adopted a new set of regulations for companies borrowing from it. The new rules, called the policy and performance standards on environmental and social sustainability, add to the existing framework of the Equator Principles, (see box: Managing risk ) which addresses issues of labour rights, community health, safety and security and disclosure of information. Issues of natural habitat, indigenous peoples, involuntary resettlement, dam safety and cultural sites already find a place in the Equator Principles, an agreement chalked out to adhere to social and environment safeguards of the bank. While the ifc maintains that the new regulation would make business more accountable and minimise the negative impact of projects on environment and affected communities, environmental watchdogs say it is not enough.
According to Lars Thunell, ifc 's executive vice president, The new ifc standards are stronger, better, and more comprehensive than any other international finance institution working with the private sector. Our aim is to increase the development impact of projects in which we invest.' However, not everyone agrees. While labour groups term the guidelines as a