International Financial Institutions Program Accomplishments

The International Financial Institutions team at CIEL has made great strides in holding these institutions accountable to stakeholders and to the public.

In addition to some of the accomplishments highlighted below, view our Research & Publications.

• Sugarcane workers in Nicaragua
• Involuntary Resettlement In Bolivia
  
  

Sugarcane workers in Nicaragua

Sugarcane workers along the Pacific coast of Nicaragua are battling an epidemic of chronic kidney disease.  The cause of the disease is unknown, but many believe it is related to the chemicals applied to the cane or the working conditions in the field.  After being diagnosed with the disease, the sugarcane workers are no longer able to work for the sugar companies, and, because there are few other sources of employment, have no means to support themselves or their families.  Furthermore, the health and social services provided to them are vastly inadequate compared to the need. 

In 2006, a group of Yale University graduate students started to work with ASOCHIVIDA, an association of former sugarcane workers who had been employed by Nicaragua Sugar Estates Ltd.  The students discovered that the company had received a loan from the International Finance Corporation (IFC), the private-sector lending arm of the World Bank Group, in October 2006. 

Compliance Advisor Ombudsman of the IFC (CAO) Complaint

Because of the involvement of the World Bank, this is a joint project between CIEL’s L&C Program and the International Financial Institutions Program.  In March 2008, ASOCHIVIDA and other community members submitted a complaint, prepared by CIEL, to the Compliance Advisor Ombudsman (CAO) of the IFC.

Status

Since January 2009, ASOCHIVIDA and Nicaragua Sugar Estates Ltd. have been participating in a mediation process under the auspices of the CAO with the objective of determining the cause of the epidemic of chronic kidney disease and to improve the health and social services provided to the members of ASOCHIVIDA.  The dialogue table has produced significant and concrete results. 

The company has voluntarily agreed to finance monthly distribution of food to ASOCHIVIDA’s 1800 members, medical equipment and supplies for the health clinic that serves the sugarcane workers, community development projects and a microfinance facility to provide alternative sources of income. 

An epidemiological investigation conducted by Boston University School of Public Health is ongoing, with financial support from the CAO and the members of the National Committee of Sugar Producers.  Boston University presented its Industrial Hygiene/Occupational Health Assessment, "Evaluating Potential Hazards Associated with Chemicals and Work Practices at the Ingenio San Antonio (Chichigalpa, Nicaragua)" to participants of the dialogue table, August 30, 2010. 

In summary, participants posed questions focused on the work practices of the company, and Boston University has responded to these questions based on the current scientific information available. Boston University concluded that none of the current work practices or the chemicals used by ISA are generally accepted causes of CRI.This conclusion does not rule out the possibility that one or more of these agents might in fact cause CRI, but new scientific knowledge and insights will be necessary to establish whether any link actually exists. To develop this new knowledge, subsequent phases of Boston University’s work will focus on gathering additional exposure and health data and investigating their possible connection to CRI, both within ISA and in other areas of Western Nicaragua.

For more information, including the epidemiological studies and mediator summaries, please visit the CAO’s website [link to http://www.cao-ombudsman.org  

The L&C and IFI Programs are grateful for the support provided by the Mott Foundation, Jim Leitner, the Ford Foundation, and individual donors. 

Involuntary Resettlement In Bolivia

Ayllu Jesus de Machaca is an indigenous community located near the historic mining town of Potosi, Bolivia.  In 2005, Coeur d’Alene Mines Corporation resettled several families in the community in order to construct a tailings facility for its silver mine.  Because Coeur d’Alene Mines Corporation had received a political risk insurance contract from the U.S. Overseas Private Investment Corporation (OPIC) in 2004, it should have been required to apply the World Bank’s Involuntary Resettlement and Indigenous Peoples Policies, but it had not done so.  Instead, the company refused to fund the Indigenous Peoples Development Plan, which it had commissioned two years after it received the contract from OPIC.

Office of Accountability

Because of the involvement of an export credit agency, this is a joint project with CIEL’s IFI Program.  In 2008, the Centro de Estudios Aplicados y Derechos Economicos, Sociales y Culturales (CEADESC) in Bolivia requested that CIEL assist them and the community in submitting a complaint to OPIC’s Office of Accountability.  

In 2009, the Office of Accountability (OA) released its compliance review, finding that OPIC failed to require the application of the Involuntary Resettlement Policy and the Indigenous Peoples Policy.  As a result, OPIC and Coeur d’Alene have agreed to provide approximately $1.5 million of the $3.9 million needed to fund the Indigenous Peoples Development Plan. 

Status 

CEADESC and CIEL are monitoring the case to ensure that the communities receive the funds. 

This work is made possible by the support of the Mott Foundation.