For nearly two years, the World Bank Board of Directors has fumbled what should be an easy decision to modernize its Inspection Panel, the primary institution that addresses the damage the Bank's lending can do to local communities. At issue is whether the Panel should be able to monitor the Bank's implementation of Management Action Plans developed and approved in light of Panel investigations. What to all outside observers would seem like an inherent part of closing any complaint – to ensure promised commitments were fulfilled – has been opposed by certain borrowers and Bank staff who believe they should not be held accountable for impacts on local communities in the first place.
Like other development financial institutions (DFIs), the World Bank's focus on large-scale projects leaves local communities bearing a disproportionate level of environmental and social risk. Too often, that risk turns into actual harm – harm that those who don't suffer it have persuaded themselves is absolutely necessary for the broader good. With the goal of reducing this risk, 25 years ago, the Bank had the foresight and imagination to create the Inspection Panel, an experiment in giving a voice to those communities asked to bear the greatest burden for the …