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Article

27 Jan 2016

Author:
Caitlin Daniel, Accountability Counsel, Kristen Genovese & Mariëtte van Huijstee, SOMO & Sarah Singh, Accountability Counsel (editors) & other organizations

Glass Half Full? The State of Accountability in Development Finance

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…[D]evelopment – the way it is currently practised by Development Finance Institutions (DFIs)…has been associated with the dispossession of land, loss of resources, diminished livelihoods and environmental degradation…While the aim of this report is to ensure that people who have been harmed by these development projects receive adequate remedy, the ultimate goal of the 11 organisations that have authored this report is that DFIs should pursue a development model based on human rights…[T]he accountability systems at the DFIs provide a vital but crude backstop for those people and communities that have been harmed by the current development model…Complainants are undoubtedly better off than they would be in the absence of any complaint procedure…However, the outcome rarely provides adequate remedy…Ultimately, however, these accountability mechanisms operate in a constrained environment constructed by the DFIs that administer them…The current report provides two sets of recommendations.  The first set seeks to perfect the current system by identifying best practices that should be adopted by all IAMs and DFIs…A new accountability system must be established with mechanisms that are empowered to make binding decisions and DFIs that no longer claim immunity in national courts…