JOIN JULY 22 GLOBAL DAY OF ACTION!

A SEED Europe
CEE Bankwatch Network
Friends of the Earth International
Jubilee USA Network
Oilwatch International
Rios Vivos Coalition
Sustainable Energy and Economy Network
50 Years is Enough Network

Dear friends,

On July 22, the World Bank will celebrate its 60th birthday. That day will
mark 60 years of failed policies, 60 years of misguided loans, 60 years of
increasing debt, and 60 years of dubious development projects.

July 22 will also be at the eve of a crucial decision at the World Bank. The
groundbreaking Extractive Industries Review - which demands an end to all
oil and coal financing - will be discussed by the Board of Directors. The
board will decide whether to end Bank business as usual, which puts
corporate profits before people and the planet.

World Bank Management has already let it be known that they intend to
continue using billions of tax dollars to subsidize the oil, gas, coal, and
mining industries. But it's not up to them. The final decision rests with
our government representatives on the World Bank's Board. They need to hear
loud and clear that the time for change is now.

Join the Global Day of Action on J-22 and call for the World Bank to:

- give communities the right to decide their own development path;
- stop investing in oil, mining and gas;
- respect human rights;
- exclude large dams from renewables initiatives;
- operate in full transparency;
- cancel 100% of impoverished country debt.

Suggestions for your local action include targeting your government or local
World Bank offices with a banner hanging, marching, leafleting, street
theatre, media work, bicycle demonstrations, and any other creative and
effective non-violent actions you may think.

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BACKGROUND

The World Bank and oil, mining and gas: winds of change?

Following decades of world wide protest against the destructive impacts of
large scale oil, mining and gas projects, of which mainly big corporations
benefited, the World Bank decided to embark on a unique review of its
operations. Three years of consultations, research and project visits within
the framework of the Extractive Industries Review (EIR) led to a report that
was published in December 2003. It suggests radical changes for World Bank
practices and policies. However, World Bank management threatens to ignore
most of these suggestions. A July 2004 decision will be a major test case
for the Bank: is it ready to change or will it continue business as usual?

The debate over extractive industries in the developing world is often
framed, particularly by international financial institutions such as the
World Bank and International Monetary Fund, as a trade-off between
environmental protection and economic growth. Increasingly, however, studies
including the World Bank's own Extractive Industries Review, are concluding
that not only are extractive industries not good for the environment, they
are failing to produce economic gains for the poor. In other words,
investing in the extractive sector has been shown to be inconsistent with
the World Bank's goals of poverty alleviation and sustainable development.

In addition, there appears to be a link between extractive industries and
debt in the developing world. Many oil-producing developing nations are also
countries wracked with some of the worst external debt. "Six of the world's
25 most oil-dependent nations are classified by the World Bank as
'highly-indebted poor countries' (HIPC) - the most troubled category of
states", according to an Oxfam analysis. The historical relationship between
oil production and external debt, as well as contemporary examples of
developing oil-producing nations, suggests that extractive industry
development often perpetuates poverty and debt.

What did the EIR recommend?

The Extractive Industries Review recommended that the World Bank ask for the
consent of affected communities before they embark on any oil, mining or gas
projects. Furthermore, pipelines and mines should not be financed in
countries whose governments are corrupt or untransparent, where there is
armed conflict, or where human rights are not respected. This recommendation
was repeated in a parallel report by the World Bank's own internal
evaluation department. The EIR furthermore suggests that the Bank must
protect areas of high biodiversity and ban oil and coal projects altogether.
It also recommended a massive infusion of investment in renewable energy.

What does the World Bank propose in response?

The World Bank management's draft response is big on promises and small on
commitments. It agrees with many of the principles of the EIR report, but
does not explain how and when these will be transformed into policies and
practices. The World Bank proposes a consultation process instead of a
consent process, says it will 'consider' governance issues without
explaining what that means, and announces a minimal target for renewable
energy. The Bank management is determined to continue investing in oil and
coal projects - even those which are designed to fuel Northern consumption -
and defers the issue of human rights to other discussions, simply because
the subject is too big. This is not good enough!

What do we want?

In the last week of July, the World Bank Board will meet for a crucial
discussion on extractive industries. They should commit to clear and
concrete measures in line with the recommendations of their own reports and
the calls from communities around the world. The World Bank should phase out
of oil, mining and gas, respect human rights and listen to the voices of the
people it is supposed to serve. And to reduce the perceived need for cash
strapped countries to drill and dig, the World Bank should immediately
cancel 100% of impoverished country debt.

Act now! Join the Global Day of Action on the World Bank on J-22!

For more information visit: www.eireview.info [2]