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IX. Governance, Law & Public Sector · Claim under review

"Independent MDB safeguards remain essential because weak country systems fail to protect people and the environment"

🏛️ What does the MDB say? — WORLDBANK 2020

"In 2020, WBG imposed its own environmental, social, and procurement safeguards rather than trusting borrower country systems, even amid pandemic flexibility."

The World Bank Group in 2020 maintained its Environmental and Social Framework (ESF) and Procurement Framework as binding safeguards for all new investment project financing, requiring borrower compliance with Bank-defined standards—not delegation to borrower systems alone. While it supported capacity building and tailored procurement approaches—including flexible, fast-track options during the COVID-19 emergency—the Bank retained fiduciary oversight and mandated integration of ESF requirements into contracts and procurement processes. It permitted Alternative Procurement Arrangements (e.g., through other MDBs or UN agencies) but only under Bank approval and supervision, affirming that harmonization did not mean relinquishing safeguard responsibilities.

Original source quotes
📄 The World Bank Annual Report 2020 p. 75 Open PDF ↗

"ERS, we continuously work to improve our operations, policies, and processes; to become a more effective and efficient institution; and to maximize our development impact. The World Bank’s Environmental and Social Framework The Bank’s Environmental and Social Framework (ESF) became effective on Octo ber 1, 2018, and applies to all new investment project financing (IPF) operations with Concept Note meetings on or after this date. It offers broad and systematic coverage of environmental and social risks and makes important advances in areas such as transparency, non-discrimination, public participation, protection for vul nerable and disadvantaged people, stakeholder engagement, and accountability, including grievance mechanisms. As we implement projects under the framework, we are enhancing our capacity and staff skills, upgrading operational systems, revising processes, and strengthen ing borrower capacity to improve risk management. We have issued guidance mate rials, templates, and other resources on key topics, including non-discrimination and disability; preventing sexual exploitation, abuse, and sexual harassment; use of security personnel; road safety; and third-party monitoring. The framework has also prompted dialogue with borrowers on the new and more explicit requirements, while new project processes and documents have strengthened transparency, account ability, and stakeholder engagement. Since contractors are responsible for applying many aspects of its standards, we have integrated the ESF into procurement processes. Project contracts now reflect requirements for preventing child and forced labor, ensuring community and occu pational health and safety, managing supply chain and inspections, and addressing sexual exploitation and abuse and sexual harassment. As part of our rapid response to the COVID-19 pandemic, countries and Bank teams have prepared emergency projects while maintaining the organization’s robust environmental and social policies and risk management standards. The World Bank Procurement Framework The Bank’s Procurement Framework promotes tailored procurement approaches for investment project finance operations. It allows projects to respond quickly to emerg ing needs and helps clients determine the best value for money to ensure quality out comes and sustainability over the life of a project. By focusing on market research, needs analysis, and project-specific risks, including environmental and social issues, we help countries develop procurement strategies and plans that meet their needs and address the operating contexts of projects to ensure successful implementation. The framework has supported our emergency response to the COVID-19 pan demic; projects have adopted flexible measures for fast-track procurement while maintaining fiduciary oversight. We acted quickly to introduce Bank-facilitated procurement for clients who requested help in accessing critically needed medi cal supplies and equipment as the pandemic drove price volatility, long lead times, disruption of supply chains, risks to transparency and integrity. This option helps For more information, visit www.worldbank.org/esf. 72 THE WORLD BANK ANNUAL REPORT 2020 countries identify interested suppliers, negotiate prices and conditions, and man age outsourcing logistics, an approach that has been well received by manufac turers, suppliers, and governments alike. Countries remain responsible for signing and implementing contracts. As of July 2020, 27 contracts worth $105 million were signed or due to be signed under this approach. We have scaled up our Hands-On Expanded Implementation Support for pro curement, which helps clients implement effective processes, including for opera tions addressing the impacts of COVID-19. In fiscal 2020, we provided this support for 70 projects. Our Alternative Procurement Arrangements (APAs) allow procurement through other organizations, including other multilateral development banks (MDBs) and UN agencies, as well as Bank-approved government agencies under Bank-financed operations; we have used these arrangements with UN agencies to respond in situa tions affected by fragility, conflict, and"

⚖️ Academic verdict 2 peer-reviewed papers
🟡 Conditional 2
📚 Academic evidence
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