The Asian Development Bank (ADB) has approved the recommendation of its accountability mechanism, the Compliance Review Panel (CRP), for a full investigation into Tata Mundra in January. Tata Mundra, a 4,000 MW coal plant in Eastern India, funded by the International Finance Corporation (IFC), the World Bank’s private sector arm since 2007, and the ADB, has received criticism for its negative social and environmental impacts (see Update 82). In October 2013, the Compliance Advisor Ombudsman (CAO), the IFC’s accountability mechanism, concluded its investigation into the plant, finding that the project did pose significant social and environmental risks however, the IFC rejected the CAO findings (see Bulletin Dec 2013). The CRP also found evidence of noncompliance with ADB policies, concluding that this “is serious enough to warrant a full compliance review.” Madhuresh Kumar of the Indian social movement, National Alliance of People’s Movements said in January, “ADB reviewing its policy compliance in Tata Mundra gives hope that people’s concerns will be looked into. We hope appropriate and timely actions will be taken on the findings.” The compliance review is underway although it is still uncertain as to when the final report will be published.
New BWP briefing offers critical gender analysis of World Bank lending instrument to borrowing countries.
At 75, the World Bank and IMF face a crisis of multilateralism in no small part of their own making as failed economic policies have resulted in skepticism of the international order they helped to create.
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