Issue 9, September 2003

1. New Report Counters World Bank’s “High-Risk/High-Reward” Strategy

2. Collapse of WTO Cancún Talks Over “New Issues” Raises Warning for FTAA Investment Negotiations

3. Final Report on Exploitation of Natural Resources in the Democratic Republic of Congo Expected in November

New Report Challenges World Bank's “High-Risk/High-Reward” Strategy

Friends of the Earth, Environmental Defense and International Rivers Network released a new report entitled “Gambling With People's Lives” that counters the World Bank's new “high risk/high-reward” strategy in the water, forestry and extractive industries sectors.

One of the Bank's most important environmental reforms of the 1990s was its more cautious approach to high-risk infrastructure and forestry projects. This policy is now being reversed. The report evaluates the World Bank's ability to manage social and environmental risks in high-risk projects and to learn from its past mistakes.

“Large dam, forestry and extractive industries projects funded by the World Bank have displaced millions of people and devastated the environment,” said Carol Welch, international program director at Friends of the Earth. “The Bank's spotty implementation of its inadequate safeguard policies means that communities and the environment will continue to face the greatest risks from World Bank projects.”

For more information, contact Carol Welch at (202) 783-7400 ext. 237 or cwelch@foe.org

“Gambling With People’s Lives” can be downloaded at: www.foe.org

Collapse of WTO Cancún Talks Over “New Issues” Raises Warning for FTAA Investment Negotiations

The collapse of the World Trade Organization (WTO) ministerial meeting in Cancún occurred after developing countries refused to negotiate the “new” (or Singapore) issues. These issues included investor protections, which raises new warning signs for investment negotiations in the Free Trade Area of the Americas (FTAA).

“The Cancún collapse over the new issues is a red flag for investment talks in the FTAA,” said David Waskow, trade policy analyst for Friends of the Earth. “Developing countries, including many from the Western Hemisphere, made especially clear their strong opposition to investment rules. That opposition should be heeded as FTAA negotiators prepare for their November summit in Miami.”

On Sep. 14, the final day of the WTO Cancún ministerial, talks were halted when countries could not agree on a Sep. 13 draft text, which would have required negotiations to be initiated on several of the Singapore issues, including investment policy. Developing countries had stated their opposition to investment negotiations for many months, pointing to the potential for investment rules to undermine social and environmental policies without placing any obligations on foreign investors.

For more information, contact David Waskow at (202) 783-7400 ext. 108 or dwaskow@foe.org.

Final Report on Exploitation of Natural Resources in the Democratic Republic of Congo Expected in November

The United Nations’ (UN) Panel of Experts investigating the economic causes of conflict and exploitation of natural resources in the Democratic Republic of Congo (DRC) is set to submit its fourth and final report to the UN Security Council at the end of October.

The Panel’s third report, published in October 2002, garnered international media attention for naming 85 companies – including several well-known multinational corporations – for violating the Organization for Economic Cooperation and Development’s “Guidelines for Multinational Enterprises.”

The third report also found that “elite networks” consisting of key political and military elites and business persons continue to plunder the DRC’s natural resources and public coffers with impunity. By employing an array of criminal activities, the elite networks continue to fuel the military conflict in order to retain their economic control over the country's vast natural resources.

On Aug. 8, the Security Council approved Resolution 1499 extending the Panel’s mandate until Oct. 31, 2003, to complete its work and submit a final report. The report is expected to be publicly available in November.

For more information, contact Colleen Freeman at (202) 783-7400 ext. 121 or cfreeman@foe.org.