The Compliance Advisor/Ombudsman (CAO)

 

A New Accountability Mechanism at the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA)

Why and How was the CAO Created?

In 1998 World Bank Group President Wolfensohn created the position of the Compliance Advisor/Ombudsman (CAO) for the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). The CAO – like the Inspection Panel in the World Bank – is designed to provide a mechanism for local communities adversely affected by IFC and MIGA supported projects to raise their concerns. The creation of the CAO is the result of a long process of trying to increase the accountability of the private sector side of the World Bank Group operations. 

• Proceed to CIEL's Press Release on the new CAO

What is the Role of the CAO? 

The CAO is independent of line management and reports directly to the President. The CAO serves several functions. On the one hand, the CAO is available to hear grievances from local communities in relation to specific projects financed by IFC and MIGA. In addition, the office can provide independent and objective advice to Management regarding environmental and social aspects of IFC's and MIGA's operations. It is designed to be a practical, problem-solving office.

How was the CAO selected ? Who is the CAO?

The first CAO – Ms. Meg Taylor – was appointed by President Wolfensohn in April 1999 following her identification as a leading candidate for the post by an independent six member external Search Committee, including representatives from NGOs and the private sector. Ms. Taylor is a national of Papua New Guinea. She received her LL.B. degree from Melbourne University, Australia in 1974 and her LL.M. degree from Harvard University in 1986. She practiced law for many years in Papua New Guinea and served as a member of the Law Reform Commission. She represented Papua New Guinea as its Ambassador to the United States from 1989 to 1994. She is co-founder and Chairperson of Conservation Melanesia, a community-based conservation organization working with communities on terrestrial and marine issues, and is presently a board member of the World Wildlife Fund—USA and of the World Resources Institute. She has been a member of the World Forestry Commission and has carried out a number of environmental and social reviews as a consultant. In addition, Ms. Taylor is a member of the board of several private sector companies in Papua New Guinea in the natural resources, financial, and agricultural sectors.

How can Communities use the CAO Process?

Ms. Taylor is currently in the process of developing the rules of procedure for the CAO office. She has held consultations with representatives of both the private sector and NGOs to develop the procedures and issued draft procedures for public comment which are available on her website at www.ifc.org/cao. CIEL provided general comments and a line by line analysis of these procedures. 

Does the CAO Replace the Need for an Inspection Panel Mechanism? 

No, the CAO is only part of the effort to make IFC and MIGA more accountable. The CAO, which is an advisory and informal problem-solving mechanism, does not replace the need for an effective inspection panel function. The World Bank Inspection Panel does not currently apply to the private-sector side of the World Bank. When and how the Inspection Panel will be extended to IFC and MIGA and what its relationship to the CAO will be are not yet clear. Non-governmental organizations have continued to call for the extension of the Inspection Panel to IFC and MIGA. In addition, IFC staff have recommended that the Panel be extended to IFC and MIGA and act as an appellate mechanism to the CAO. 

Proceed to CIEL's Proposal for the Extension of the Inspection Panel to IFC/MIGA