In the News

When the Inter-American Development Bank invested US$242 million in a garment factory complex in Northeast Haiti, it did not account for the project’s threat to food security – the ability of local families to reliably access sufficient, nutritious food. In a region and country that suffers regular food crises, that oversight had grave consequences.

Few places in the world exude a sense of timelessness as Lamu, an island off of Kenya’s northern coast home to the oldest and best preserved Swahili settlement in East Africa. Lamu’s old town, a UNESCO World Heritage site and an epicenter of Indian Ocean trade for centuries, is a maze of narrow winding streets that cut through neighborhoods of limestone and coral houses, past elaborately carved mahogany doors and several dozen mosques and churches. Only a handful of motor vehicles are allowed on the island; transportation is mainly the domain of donkeys or men pushing wooden carts through the tropical swelter.

Natalie Bridgeman Fields, who is the founder and executive director of a nonprofit called Accountability Counsel, isn’t so sure. Accountability Counsel is one of several small nonprofits–others include the Bank Information Center, EarthRights International, SOMO and Inclusive Development International–that work to make sure that the World Bank, and other financial institutions and global companies, respect the rights of the poor to help shape the development projects that affect them.

After years of repeatedly raising issues with the World Bank about accountability, Natalie Bridgeman Fields finally had her chance to speak with its president, Jim Kim. She approached him at the Skoll World Forum, following a screening of Bending the Arc, a documentary that follows his path from co-founding Partners in Health to taking one of the most influential positions in development finance. But the conversation did not go as she had hoped.

In September 2016, the Compliance Advisor Ombudsman (CAO) for the World Bank’s private investment arm, the International Finance Corporation (IFC), issued a striking report on the Bank’s investment in Indian tea plantations part- owned by the massive Tata conglomerate and employing more than 30,000 workers. For a decade, the Bank had been involved with Tata in a project to spin the plantations off into a separate company.

For the past month, local communities such as the indigenous people of the Sindhuli District have been obstructing the works of the Khimti-Dhalkebar 220KV electricity transmission line project. It is the highest-capacity line in Nepal that is funded by the World Bank and is working in collaboration with Nepal Electricity Authority (NEA).

Nestled among the glaciers and plentiful freshwater systems of the Himalayas, Nepal is a rich source of alternative energy. Recently, the government of Nepal has introduced a host of ambitious projects to tap its vast hydropower potential. In February 2016, the government endorsed the National Energy Crisis Reduction and Electricity Development Decade Plan, which aims to produce 10,000 megawatts of energy. Currently, as many as 70 hydroelectricity generating plants (ranging in capacity from 6 to 750 megawatts) are in operation across the country.

An Adivasi woman working in Assam’s tea plantations will carry her baby on her back as she has nowhere to leave her children, and she’ll bring another child along to help her pick tea leaves. She will spend eight to nine hours picking leaves and gather a total of 24 kilograms a day, with few or no breaks. In breach of the state’s legal minimum wage of 250 Indian rupees per day, she will receive only 126 rupees (about £1.52). Failure to meet her daily target will further reduce her wage. Aggravating her poor working conditions, there is no toilet accessible in her workplace, and the housing and sanitation facilities provided for her in the plantation are in disrepair.

In a stunning display of recklessness, newly released State Department documents reveal that the U.S. Overseas Private Investment Corporation (OPIC)—the government’s development finance institution—blatantly disregarded red flags as it continued to pour millions into a risk-laden biofuels project in Liberia. This news coincides with a flurry of criticism involving the agency’s failed investments in Afghanistan.

Tea workers are trapped in a cycle of dependence that began way back when the first tea estates were planted in India in the 1830s. Very little has changed since then, says Anirudha Nagar, of Accountability Counsel, an organisation supporting the APPL workers. “With housing tied to their job, they are practically held hostage by their employer,” he says. “With abysmally low wages, they face a daily struggle to survive and have no means for advancement. And with poor access to education, their children are left with no option but to become workers themselves.” So what can be done? Here is what campaigners such as Anirudha Nagar want to see happen…

GUWAHATI: A tea plantation company has been found to be reneging on its commitment to provide housing and other services to workers on its tea estates, according to a report by the compliance advisor ombudsman (CAO) for the International Finance Corporation (IFC).

A World Bank investigation into a tea plantation project in India that it jointly finances with tea giant Tata Global Beverages has found that it has failed to tackle alleged abuses of impoverished workers, the group said on Wednesday. The International Finance Corporation (IFC) – a member of the World Bank Group – said its accountability office began a probe into the project, run by Amalgamated Plantations Private Limited (APPL), after reports tea pickers were being exploited.

During coffee breaks at the past two annual Social Capital Markets (SOCAP) conferences, I’ve asked dozens of impact investors: Do you evaluate and mitigate the risk of social or environmental harm that your investments might cause?

The World Bank has found serious shortcomings in the way Amalgamated Plantations Pvt. Ltd (APPL), India’s second largest tea producer, treated workers at its Assam plantations, said a study released on Monday. After a two-year-long investigation, the World Bank found that its arm, International Finance Corporation (IFC), had not followed due process while investing $7.8 million in APPL’s Assam tea plantations and that workers had not been given promised benefits by the tea producer.

In a major blow to the tea industry, particularly the Amalgamated Plantations Private Limited (APPL) and World Bank group, the Compliance Advisor Ombudsman (CAO), which holds the World Bank Group accountable to its own policies, has found that low wages and poor working conditions on APPL plantations do not protect and promote the health of workers, and thus do not provide a way out of poverty.

The Assam tea industry produces half of India’s tea and employs nearly 800,000 workers. Just a few companies dominate the landscape, with Tata Global Beverages, McLeod Russel and Unilever especially powerful. Tata own[s] almost half of Amalgamated Plantations Private Limited (APPL), a further 17% of which is owned by the International Finance Corporation (IFC) – the World Bank’s private sector arm – which invested $7.87 million in the company in 2009.

A World Bank Group lender’s credibility has been threatened over questions involving its investment in the tea plantation unit run by Indian conglomerate Tata group, following complaints that the company pays workers just half the minimum wage. The World Bank Group’s International Finance Corp. is an investor. However, several of the company’s plantations have come under criticism from local nongovernmental organizations as workers toil long hours for less than minimum wage.

On August 10, ESCR-Net sent a letter to the Government of Nepal to express concern regarding the reported and threatened human rights violations in connection with the World Bank-funded Khimti-Dhalkebar 220 kV Transmission Line Project (Project), in the Sindhuli District, which is operating on the lands of indigenous peoples.

Residents of Giddijhopri clash with police as they try to stop work on a water treatment plant in their village. Work started on Friday after the CM took note of report that Jamshedphur SDO Suraj Kumar had to face sedition case when he tried to expedite the Bagbera-Chotagovindpur water supply…

In April, World Bank President Jim Yong Kim gave a talk in New York where he addressed development-induced environmental and human rights abuses. While referring to such abuses, President Kim reasoned “[y]ou cannot do the kind of work we are trying to do and not have some of these incidents happen.” Although he framed rights violations as regrettable, President Kim’s implication — that human rights violations and loss of life are sometimes an inevitable part of achieving development — is false.