World Bank Group and IFC palm oil framework

http://www.ifc.org/ifcext/agriconsultation.nsf/AttachmentsByTitle/Rimisp_lead+discussants/$FILE/E-Consultations_Lead+Discussants+Comments.pdf

Summary of Feedback from Lead Discussants
WORLD BANK GROUP PALM OIL FRAMEWORK 2010

(a) the strongest positive points of the draft strategy
In general the draft framework has laid down the key fundamental pre-requisite and guidance for the World Bank Group and IFC in dealing with the palm oil industry.
The draft strategy helps to lay down basic crucial aspect for the World Bank Group and IFC in engaging with palm oil industry and external stakehlolders.
The draft framework is very useful whenever the World Bank Group and IFC can make the most of it for better and continual improvement of the existing oil palm plantations and palm oil industry.
The draft framework becomes strategic bench-marking for the World Bank Group including IBRD, MIGA, IFC and other Equator Banks

(b) the weakest points
Social issues, civil and political human rights, labour issues – migrant workers and stateless children, and gender issues of exploitation.
Food security and indigenous livelihoods. There is unclear on how WBG/IFC focus on yield improvement programs for smallholders and optimising existing oil palm plantations – zero deforestation and toward low GHG emissions
Vulnerable groups: still need clear framework, procedure and measures as pre-condition before any new investments and services;
climate change responsibilities of all services, clients and intermediaries including supply chain of client: still unclear how the World Bank Group and IFC undertake role in the reduction of emissions from historical projects and clients
free, prior and informed consent – IFC is an ordinary member of the RSPO which fully adopts FPIC in principles and criteria on sustainable palm oil (criterion 2.3, criterion 6.5, criterion 7.4). IFC should undertake an upward harmonisation on FPIC consistent with RSPO standard and UNDRIP.
Historical issues and failures in nucleus estates and smallholders schemes (NES) and palm oil transmigration programme in 1980s had triggered deforestation and violation of human rights of indigenous peoples in Indonesia.
There must be internal enforcement mechanism to deal with violations committed by the staff of the IFC and World Bank Group in order to make sure the World Bank Group's new palm oil sustainability engagement framework is credible with effective enforcements.

What does this statement stand for?
Page 24 … In Indonesia some smallholder groups referred to what they called a “black” campaign by some environmental groups that they felt grossly exaggerated the environmental issues in their area.
They expressed the fear that this could affect the global demand for palm oil from Indonesia…
The final framework should use an impartial sentence wording. Unclear supply chain mechanisms the only way in which World Bank Group can achieve avoid reputational risks, gain credibility and enhance positive image in the public and private sector.

(c) missing issues and gaps
It is still not clear on how the framework will address labour issues in particular migrant workers and stateless children, and gender issues of exploitation in producing countries in Indonesia and Malaysia.
Non-land acquisition aspects of oil palm plantation development including access to health and clean water streams, air and spaces for the needs and activities of local communities.

World Bank Group and IFC still need to undertake upward harmonisation with other international norms, rules and voluntary standards: still unclear how World Bank Group will deal with all ongoing cases and unresolved problems in the sector in the different producing countries.