VVD Europarty on-line

WRITTEN QUESTION P-0439/03
by Elly Plooij-van Gorsel (ELDR) to the Commission

(07 February 2003)

Subject: European Bank for Reconstruction and Development (EBRD) draft proposal for an Independent Recourse Mechanism

The G7 laid down in 2002 in Genoa that multilateral financial institutions should set up an independent compliance mechanism. In response, the EBRD recently issued a proposal for such a mechanism. In Europe, to date, the proposal has attracted little attention.

As long ago as 1993, the Washington-based World Bank set up a comparable body by establishing the Inspection Panel. The panel was set up to operate as a public forum for individuals to submit complaints to the Bank whenever they believe that they are being harmed, or may be harmed, by a project which has World Bank funding.

The EBRD proposal has been commented on in the following terms by two former Inspection Panel chairmen:

- the proposed compliance mechanism does not guarantee independence for the panel body;

- the mechanism cover only part of the EBRD's activities;

- disclosure of information concerning drafts subject to the mechanism is conditional and vague;

- persons appointed to the compliance panel do not enjoy sufficiently clear autonomy and effectiveness;

- to judge from the proposal, much more emphasis is placed on problem solving than on compliance.

- Is the Commission aware of the EBRD proposal and, if so, has it checked the draft against the criteria laid down by the G8 in July 2000, such as independence, transparency, etc.?

- Does the Commission agree with the above criticisms?

- If so, does the Commission plan to take action in this connection vis-à-vis the EBRD?

- Does the Commission plan to draw greater attention to the proposal and, if so, in what way?