International Environmental Oversight: U.S. Agencies Follow Certain Procedures Required by Law, but Have Limited Impact
Highlights
The World Bank Group lends about $40 billion annually to developing countries. Critics have claimed that some projects have harmed the environment and the local population. Title XIII of the International Financial Institutions Act of 1977 outlines in part the U.S. government's requirements for reviewing potential environmental and social impacts of proposed multilateral development bank projects. GAO was asked to assess the U.S. government's international environmental oversight efforts by examining (1) how U.S. agencies implement legislative requirements to review the potential environmental concerns associated with proposed World Bank Group projects, and (2) agencies' ability to identify and address these concerns. GAO reviewed Title XIII, World Bank Group reports, and U.S. agency documents and met with representatives from U.S. government agencies, the World Bank Group, and nongovernmental organizations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | In order to improve U.S. agencies' ability to effectively contribute to the interagency effort to evaluate World Bank Group proposals that are likely to have significant adverse environmental and social impacts, the Secretary of the Treasury, in his capacity as the chair of the Working Group on Multilateral Assistance, should routinely identify all proposals of concern in advance of working group meetings with other agencies in order to maximize the ability of all participants to contribute to the evaluation of World Bank Group proposals. |
The Department of the Treasury has taken steps to increase efforts to provide agencies with earlier warning on environmentally sensitive projects. To this end, it now disseminates information on upcoming multilateral development bank projects in advance of weekly interagency meetings, including the environmental category for each project.
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