*{ http://www.foe.org.uk/pubsinfo/infoteam/pressrel/1997/19970611104559.html 10 septembre 2002 } *partie=titre WORLD BANK PRESIDENT CONFRONTED BY OIL COMPANY SCROUNGERS *partie=nil *{ PICTURE OPPORTUNITY 10.45am Wednesday, 11 June, 1997 Dept for International Development 94 Victoria St (across from Westminster Cathedral) London SW1 } World Bank President James Wolfensohn, visiting London today (11 June 1997), will be the target of a Friends of the Earth protest outside the Department for International Development at 10.45am. Mr Wolfensohn is due to meet Clare Short, Secretary of State for International Development, to discuss the World Bank's role in alleviating global poverty. The Bank is currently providing ever more money direct to multinational companies like Shell, Exxon, Elf rather than the world's poor and has failed to produce clear guidelines on what social and environmental standards should apply to private sector projects [1]. To highlight this new form of "corporate welfare", spoof oil company representatives will hold a street collection outside the Department of International Development and shake a giant collection tin for members of the public to put money in. Clare Short, has previously made speeches emphasising the importance of raising ethical standards in international business, but has not yet stated how the World Bank could promote rather than undermine this objective. [2] Tony Juniper, Campaigns Director at Friends of the Earth, said: "Overseas aid should go to the world's poor not scrounging oil companies who are already the richest organisations on the planet. Clare Short should take a lead and use her leverage over the World Bank's board to protect the poor and set up strict environmental and social guidelines for working with the private sector." The UK gives around ten per cent of UK aid money to the World Bank each year, in 1995/6 a total of £207million. The World Bank as a whole lends and invests around $25 billion a year in developing countries. *{ NOTES TO EDITORS: } [1] Examples of the "aid" projects which the Bank's private sector staff currently deem worthy of funding are the Chad-Cameroon oil production and pipeline project, run by a consortium of Shell, Exxon and Elf. The World Bank is being asked to provide loans and investment finance for this project totalling $275 million although there are far more pressing development and environment needs in that area. A final decision is expected later this year, but the Bank has indicated that it would like to proceed. Another dubious project is the Ukraine-Commercial Space Launch Guarantee Project, for which the Bank has provided $175 million in guarantees to backstop commercial risks. The project, which involves transnational companies Boeing and Kvaerner in joint venture with Russian and Ukrainian companies Yuzhnoye and Energia supports the launch of commercial satellites for cable TV transmissions, cellular telephones, paging and data transmission. [2] Britain is one of only five countries with its own Executive Director appointed to the World Bank board, and is thus in a strong position to ensure that, if any scarce aid resources are to back private private companies, the companies must follow tough ethical and environmental standards. Clare Short recently stated at the launch of Labour's Charter for Ethics in Business: "Business realises that it is not just morally right to introduce ethics into company practice, but that it makes good economic sense. Labour will embrace and support this growing movement." [3] The World Bank Group comprises four main organisations. The best-known World Bank agencies, are the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) which provide loans to governments for projects such as dams and roads. Less well-known are the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) which finance and insure companies investing in developing countries. Whilst IBRD lending declined by 23 per cent from 1994/5 to 1995/6, IFC financial approvals rose by 10 per cent. IFC's financial commitments have been rising by over 10 per cent a year over the last few years. In 1995/6 the IFC approved $3.2 billion in financing towards projects with a total value of over $19 billion [source IFC annual report, 1996]. In 1995/6 MIGA made 68 guarantees,facilitating an estimated $6.6 billion of foreign direct investment (MIGA annual report, 1996).