This book shows how environmentalists have shaped the world's largest multilateral development lender, investment financier and political risk insurer to take up sustainable development. It challenges an emerging consensus over international organisational change to argue that international organisations (IOs) are influenced by their social structure and may change their practices to reflect previously antithetical norms such as sustainable development. The text locates sources of organisational change with environmentalists, thus demonstrating the ways in which non-state actors can effect change within large intergovernmental organisations through socialisation. It combines an account of international organisational change with detailed empirical evidence of change in one issue area across three institutions.
This volume compares how the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) have responded to sustainable development norms espoused by transnational environmental advocacy network (TEANs). It examines the process and extent of environmental change within three institutions of the WBG and proposes a holistic and a dynamic account of international organisation (IO) change that recognises the mutual constitution of IOs and international norms promoted by non-state actors. This chapter argues that while lending patterns fluctuate, how the WBG promotes and practises development depends upon what they understand ‘development’ to mean.
This chapter provides an overview of the debates over causes of international organisation (IO) change in relation to constructivist and rationalist accounts. It argues that a constructivist account establishes a more comprehensive and dynamic analysis of IO and World Bank Group (WBG) change by examining how international norms shape IOs through interactions between IOs, states and non-state actors. This chapter also outlines the concept of transnational environmental advocacy networks (TEANs) and discusses the key concepts of socialisation and avenues of socialisation.
This chapter analyses the ‘World Bank’ comprised of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). It traces how transnational environmental advocacy networks (TEANs) used campaigns to oppose the Bank's operations in order to prevent or mitigate the negative environmental impacts of Bank-backed projects and provides a history of the first high profile cases of Polonoroeste in Brazil and Narmada in India where TEANs first challenged the WBG. This chapter also assesses how the networks pressured for institutional mechanisms to ensure greater environmental accountability and adherence to strengthened safeguards and examines the ongoing process of identity change within the World Bank and its affiliates.
This chapter investigates how the International Finance Corporation (IFC) became embroiled in environmental debates over its loans and guarantees. It explains that though the IFC operates separately and has different role and function than the World Bank, it has overlapping member states with similar power structures and espouses the same development norms of economic growth and poverty alleviation. This chapter describes the IFC's first big project, the controversial Pangue Dam in Chile, and examines how transnational environmental advocacy networks (TEANs) pushed for IFC to have its own environmental and social safeguard policies and information disclosure.
This chapter focuses on transnational environmental advocacy networks' (TEANs) criticism on the Multilateral Investment Guarantee Agency (MIGA) over its role as a political risk guarantor of private sector capital in developing countries that have a negative environmental impact. It investigates how TEANs attempted to influence MIGA again through project campaigns, particularly on the Freeport mine in West Papua. This chapter also explains how identity shapes how international organisations (IOs) internalise international norms and shows how sustainable development norms espoused by TEANs increasingly shape private sector-oriented financial institutions with similar development goals but distinct professional identities.
Lending, investing and guaranteeing sustainable development
This chapter assesses the broader implications of environmental shifts in the World Bank Group (WBG) organisation identities for the future of international development lending and environmental activism. It discusses the role of socialisation in the formation of the identity of WBG organizations and explains how they were influenced by norms of sustainable development. These organizations include the World Bank, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). This chapter suggests that new paths to socialisation will need to be forged to reconstitute radically the broader international political economy towards ecologically driven development for all states, IOs and non-state actors alike.