The World Bank Considers Stepping Back from Accountability

For nearly two years, the World Bank Board of Directors has fumbled what should be an easy decision to modernize its Inspection Panel, the primary institution that addresses the environmental and social damage the Bank's lending can do to local communities. At issue is whether the Panel should be able to monitor the Bank's implementation of Management Action Plans developed and approved in light of Panel investigations. What to all outside observers would seem like an inherent part of closing any complaint -- to ensure promised commitments were fulfilled -- has been opposed by certain borrowers and Bank staff who believe they should not be held accountable for impacts on local communities in the first place.