By Witness Radio team.
The World Bank’s Board of Executive Directors has approved changes to its Accountability Mechanism (AM) structure to enhance its independence and overall effectiveness, efficiency, and functioning.
The World Bank Accountability Mechanism is an independent complaints mechanism for people and communities that believe a World Bank-funded project has harmed them or is likely to be abused by one. It also houses the Inspection Panel and the Dispute Resolution Service.
This milestone, a response to the overwhelming complaints from cases handled by the World Bank’s Accountability Mechanism, including the failure to fully address concerns submitted by communities negatively impacted by World Bank-funded projects, brings hope for a more effective and responsive system.
The approved changes follow a comprehensive report by an external review team appointed by the World Bank Board last year. This thorough review explored options to improve the World Bank’s accountability process, instilling confidence in the changes made.
The report provided assessments and recommendations on issues related to accessibility to the compliance and DR functions; how the IPN can independently perform its compliance function under the present structure; options for structural changes; redundancies and efficiencies in the present AM system; and interactions between the DR and the compliance review functions, among others offering options that range from moderate to significant changes.
Based on the recommendations from the External Review Team report, the Inspection Panel (IP) and the Dispute Resolution Service (DRS) will operate as two parallel units, each independently reporting to the Board, and the Accountability Mechanism Secretary will be closed.
Additionally, a new position of Executive Secretary will be created to support both units and work under the direct supervision of the IP Chair and the Head of the DRS.
Initially, as per its founding mandate, the Inspection Panel responds to complaints from individuals affected by World Bank projects. If a Request for Inspection is deemed eligible and the Panel recommends an investigation, the Board approves. Within 30 business days of the investigation’s approval, the Accountability Mechanism Secretary will offer the Requesters and borrower the option of voluntary, independent dispute resolution. If both parties accept this offer, the Dispute Resolution Service will assist them in reaching an agreement to resolve the issues raised in the Request.
If either party declines dispute resolution or an agreement is not reached within the specified time frame, the case is transferred to the Inspection Panel. The Panel, a cornerstone of the World Bank’s accountability process since 1993, investigates to assess whether the Bank has adhered to its operational policies and procedures and to identify any harm caused.
The new Executive Secretary position will provide administrative, communication, and coordination services to the IP and the DRS. This role will ensure smooth operations and effective communication between the two units, the Board, and other stakeholders.
The World Bank has also stated that these changes will not impact current cases, and the Board will continue to explore further reforms to enhance overall accountability. The changes will be implemented following the Board’s adoption of amendments to the governing resolutions in the coming weeks.
The AM and DRS were created by the Board in 2020 to provide project-affected communities with the option of dispute resolution to address their concerns. Creating these units was a significant step towards enhancing the World Bank’s accountability and ensuring that affected communities have a voice in the project implementation process. The Inspection Panel, which carries out compliance reviews in response to complaints by affected people, was established in 1993 as the first independent accountability mechanism at an international financial institution.
