Page:Brundtland Report.djvu/329

 difficult to envisage developing countries making this transition in an effective and timely manner without their full commitment and support.

6.2.1 Reorienting Multilateral Financial Institutions
103. The World Bank, IMF., and Regional Development Banks warrant special attention because of their major influence on economic development throughout the world. As indicated in Chapres 3. there is an urgent need for much larger flows of concessional and non-concessional finance through the multilateral agencies. The role of the World Bank is especially important in this respect, both as the largest single source of development lending and for its policy leadership, which exerts a significant influence on both developing counties and donors. The World Bank has taken a significant lead in reorienting its lending programmes to a much higher sensitivity to environmental concerns and to support for sustainable development. This is a promising beginning. But it will not be enough unless and until it is accompanied by a fundamental commitment to sustainable development by the World Bank and the transformation of its internal structure and processes so as to ensure its capacity to carry this out. The same is true of other multilateral development banks and agencies.

104. The IMF also exerts a major influence on the development policies of developing countries and, as described in Chapter 3. there is deep concern in many countries that the conditions that accompany its lending are undermining sustainable development. It is theefore essential that the IMF, too, incorporate sustainable development objectives and criteria into its policies and programmes.

105. Several countries have already formally instructed their representatives on the Board of the World Bank to ensure that the environmental impacts of projects proposed for approval have been assessed and adequately taken into account. We recommend that other governments take similar action, not only with regard to the World Bank but also in the Regional Banks and the other institutions. In this way they can support the ongoing efforts within the Banks and other institutions to reorient and refocus their mandates, programmes. and budgets to support sustainable, development. The transition to sustainable development by the development assistance agencies and the IMF would be facilitated by the establishment of a high-level office in each agency with the authority and resources to ensure that all policies, projects, and loan conditions support sustainable development, and to prepare and publish annual assessments and reports on progress made and needed. A first step is to develop simple methodologies for such assessments, recognizing that they are at present experimental and need further work.

106. In making the changes, the multilateral financial institutions fortunately have some base on which to build. In 1980, they endorsed a Declaration of Environmental Policies and Procedures Relating to Economic Development. Since then they have been meeting and consulting through the Committee of International Development Institutions on the Environment /…