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The World Bank Ignores Africa Concerns
President Zoellick Doing the Bidding of
Environmental Zealots and other Vested Interests
November 24, 2010 (Lagos, Nigeria)—The
Initiative for Public Policy Analysis (IPPA), the
Nigeria-based public policy think-tank, today decried
recent comments by an IFC official on the sidelines of a
Roundtable on Sustainable Palm Oil meeting in Jakarta.
IFC Agribusiness official
Atul Mehta recently stated, "If we reach a point
which we don't think [palm oil loan recipients] have the
commitment or they don't meet it, we can invoke
contractual requirements to exit."
IPPA believes this statement is inexcusable. The World
Bank and IFC have demonstrated a heavy-handed attempt to
impose sustainability standards, which would hamper
economic prosperity among smallholders and contradict
the Bank’s mandate of alleviating poverty through
economic development.
“The
World Bank’s stylish evolut! ion to become a global
environmental regulator continues to underscore ! that
efforts to alleviate poverty are no longer the Bank’s
priorities,” said Thompson Ayodele, Director
of IPPA and author of a recent
New York Times editorial, The World Bank’s Palm Oil
Mistake.
“The
World Bank’s new rules have far-reaching consequences
beyond palm oil and will impact small farmers across
Africa making them unable to expand their production or
enhance their yields. These conditions run contrary to
the Bank’s stated goals of helping people help
themselves.”
“In a
recent response to IPPA and seven other African
economists, President Zoellick again reaffirmed a
misplace! d commitment for green lending standards. He
writes, ‘…when sustainability criteria are not followed,
palm oil production has led to negative environmental
and social impacts.’ This is flimsy and ignores palm
oil’s proven record of reducing poverty and protecting
forested land.
“It’s
unfortunate President Zoellick is moving to impose these
standards. This evolution in the Bank’s priorities
plays directly into the hands of Environmental Zealots,
whom have captured the World Bank and use it to promote
their own skewed environmentalist agendas. It’s sad that
the World Bank has become a willing tool in the hands of
environmentalists’ campaign to limit and restrict
economic growth.
“The Bank’s freezing of palm oil l!
ending, and the evolution of the Bank’s prioritization
of sustainability criteria, could likely have grave
consequences for all commodities such as soybeans,
sugar, coffee and all fruit and vegetable industries
seeking loans – the victims of this misguided policy
will not only be farmers in Africa but all developing
world agricultural workers and producers.”
Nigeria is the third largest producer of palm oil
following Indonesia and Malaysia. The country provides a
clear example of how palm oil, as a result of its high
yield and low production costs, is a highly effective
means of alleviating poverty and promoting economic
development, the primary reason for the existence of the
World Bank and International Finance Corporation.
The Initiative for Public Policy Analysis (IPPA), the
2005 award-winning organization, is Nigeria's public
policy research institute! or think tank. Its major
concern is with the principles and institutions that
enhance economic development and wealth creation, with
particular focus on Africa and Nigeria.
For media enquiries, please contact the author of the
report Thompson Ayodele on +234.1.791.0959,
+234.80.2302.5079 or
thompson@ippanigeria.org.
IPPA News Coverage:
New York Times
Op-Ed by Thompson Ayodele, The World Bank’s Palm Oil
Mistake, October 16, 2010
The Guardian,
World Bank Suspends N19.8b Palm Oil Investment in
Nigeria, Others, October 7, 2010
Business Day
Op-Ed by Thompson Ayodele and Richard Tren, Bank's Palm
Oil Cop-Out Thwarts Its Goals, September 30, 2010
The Guardian,
Nigeria’s Palm Oil Industry Has Lots of Potential for
Economic Growth, Says Expert, September 7, 2010
The Nation,
IPPA Highlights Benefits of Palm Oil, August 26, 2010
The Hindu Business Line,
Palm Oil Can Alleviate Poverty, Foster Growth: Report,
August 23, 2010
IPPA Press Releases:
African Economists Urge
World Bank President t! o Halt Palm Oil Investment
Freeze, October 6, 2010
Nigerian Think-Tank Lauds Liberia Palm Oil Investment,
Will Create New Jobs and Economic Growth, September 13,
2010
IPPA Report Frames African Case for Palm Oil, Urges
Renewed World Bank Focus on Poverty Reduction, August
23, 201! 0
IPPA Resources:
African Economists Letter to World Bank President Robert
Zoellick, October 6, 2010
African
Case Study: Palm Oil and Economic Development in Nigeria
and Ghana; Recommendations for the World Bank’s 2010
Palm Oil Strategy, August 2010
Initiative for Public Policy Analysis
Address: 9A, Adekunle Odunlami Street, Off Aina George,
Ilupeju, Lagos, Nigeria
Phone: +234-1-791-0959, +234-(0)80-2302-507 | URL:
www.ippanigeria.org
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