Clarification on the GEF grant
Clarification on the GEF grant
The Mining policy may lead to lower grants article published on
Oct. 22 was evidently based on discussions during and after the
recent Country Dialogue Workshop on the Global Environment
Facility (GEF) held in Jakarta. It quoted statements from our
Senior Biodiversity Specialist, Dr. Kathy MacKinnon.
The article covers several important issues related to
Indonesia's future ability to attract funds from the GEF and
other donors. However, its title is misleading, and so is the
implication that the World Bank or the GEF have a policy that
would lead to the withholding of grant funds because of
legislative approval for six open-pit mining operations on forest
land.
The topic at the workshop related to the article was
Indonesia's credibility as a future recipient of grants to
support biodiversity conservation. Indonesia is receiving
considerably less grant funding from GEF than its status as
arguably the world's foremost country for both terrestrial and
marine biodiversity would merit.
The point Dr. MacKinnon was making is that grants for
biodiversity conservation are limited and that in choosing where
to use them, donors no longer consider only the ecological value
of the resource. The probability that the conservation effort
will be successful and sustainable is also an important aspect of
the grant funding decision.
The illegal logging in many of Indonesia's national parks is
well-known to the donors, and they also understand that the
factors that make it difficult to control are not so much limited
technical capacity as they are weak law enforcement and lack of
political will. Donors can assist with capacity-building but not
with political will, and they can be expected to remain skeptical
about future grant funding for national parks in Indonesia until
they see some progress in that area.
Similarly, if there is a risk that a conservation area could
be opened for mining, donors like GEF will likely choose to put
their money elsewhere.
That the legislative approval for six companies to resume open
pit mining operations in forested areas set aside for watershed
protection would trigger a reduction in grant funding for
conservation was not a part of Dr. MacKinnon's message, nor is it
the opinion of the World Bank.
The Bank has, however, for a long time urged that any
decisions regarding land use changes in Indonesia's official
forest estate be made transparently, in consultation with all
stakeholders, and in consideration of all relevant information
including potential environmental, social and economic impact.
TOM WALTON, Environment and Safeguards, Coordinator,
World Bank Office, Jakarta