The International Finance Corporation (IFC) proposal to establish a special economic zone (SEZ) in Papua New Guinea (PNG) has caused concern. SEZs are geographical regions within a state that have more business friendly rules than the rest of the country. The IFC claims the SEZ would boost PNG’s attractiveness to foreign investors, however PNG-based bloggers fear that, “the zones are notorious for low wages, inhuman living and working conditions and other human rights violations. They also contribute little to local economies as most raw materials are imported and finished goods exported duty free.”
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.