Managing Conflict Through Effective Mitigation By Multilateral Development Banks

Authors:

Abstract: Learning how to manage conflict through effective mitigation measures by multilateral development banks is a new area of learning. Mirroring findings highlighting the significance of procedural justice mechanisms in the US domestic criminal and public law contexts (Tyler, 2003), global multilateral development banks demonstrate a positive “engagement effect” such that with expanded access to community grievance mechanisms, fewer claims are lodged. Statistical findings from a review of the aggregate percent of total grievances lodged out of total funded projects by seven major Multilateral Development Banks following the introduction of heightened Environmental and Social Frameworks (‘ESFs’) between 2010-2020, show that the percentage of grievances per project peaks at 15.4% in 2019 then drops significantly in 2021 to 7.1%. While this overall decline in the percentage of grievance cases could be due to a number of intervening factors including heightened environmental standards or self-help, overall the findings provide measured evidence supporting the development of increasingly robust community engagement channels, including pre-project consultation mechanisms and on site grievance channels particularly for multilateral and national development banks which have not yet implemented such policies. These engagement channels, far from aggregating complaints during the period examined, conversely appear to serve as a conduit incorporating community concerns into project design such that disputes are avoided.

Track: MED

Keywords: dispute prevention; mitigation; infrastructure disputes; community consultation; stakeholder engagement