16

30

amounts of forests, wildlife habitat and agricultural lands.'

Livestock Project, Botswana

Two livestock projects

designed to increase beef production for export have, according

to many experts, led to serious overgrazing and increased

desertification.

Concerns have also been raised about

construction of fences in the path of wildebeest migration

routes.

4. In your view, is it necessary or appropriate to amend NEPA to extend the authorities to u.s. actions involving multilateral development loans in other countries? What do you believe the effect would be in terms of influencing the scope or direction of proposed projects? How would NEPA work in this situation?

I believe that the United States should implement a

program to ensure that the MDBs themselves implement a strong environmental review process on proposed projects. This would

not require an amendment to NEPA.

Rather, I would support a

program of technical assistance and training, including

cooperatively prepared environmental impact analyses, with the

goal of developing systematic procedures to ensure that

environmental impact analysis is a central part of every loan

proposal.

I believe that such a program should include:

* establishment of an orderly, predictable process to

consider the environmental impacts of proposed

projects;

30

A report from the Agency for International Development states that environmental studies were initiated comparatively late in the planning process. "One result is that the examination of alternatives with fewer social/environmental impacts has been precluded". April, 1988.

17

* wider involvement of government agencies with

special expertise in environmental concerns, as well as

by interested members of the public sector;

* a recognition of the interrelated, global nature of

environmental impacts;

* utilization of the "Goals and Principles of Environmental

Impact Assessment" adopted last year by the United Nations

Environment Programme Governing Council.

Used in a rational and efficient way, such a program would

be one of the many tools, formulated by the executive branch, by

Congress, and by many other interested groups, to address the

significant concerns about environmental impacts of projects

funded by the MDBs.

If I make take the liberty of quoting the

Secretary of the Treasury:

"What the Reagan Administration wants the World Bank and
the other development banks to do is to make environmental
analysis a central part of every loan proposal
systematically and routinely. We want the Bank to draw on
the expertise of trained environmental analysts both on
its staff and outside consultants who know developing
countries and can assess just what impact any new project or
policy will have on the ecology of those countries.
It should then incorporate that analysis into its lending
decisions and assistance from the very beginning of the
lending process.

11 31

How NEPA would work for U.s. actions involving multilateral development loans in other countries?

I believe that the environmental impact assessment process

is better handled in the framework of MDB loans to other

31

Remarks by the Secretary of the Treasury, James A. Baker, III, at the Fourth World Wilderness Congress, Denver, Colorado, September 11, 1987.

18

countries by the type of program which I have suggested above; in other words, a cooperative program of assisting the MDBs to

develop their own environmental impact assessment programs rather

than application of NEPA as implemented for domestic proposals.

In-
Tide 3
The President

Executive Order 12714 of January 4, 1979
Eavisonmealal Effects Abroad of Major Foderal Actions
By virtue of the authority vested in me by the Constitution and the laws of the
United States, and us President of the United States, in order to further
environmental objectives consistent with the foreign policy and national
security policy of the United States. it is ordered as follows:
Section 1.
1-1. Purpose and Scope. The purpose of this Executive Order is to enable
responsible officials of Federal agencies baving ultimate responsibility for
authorizing and approving actions encompassed by this Order io be informed
of pertinent environmental considerations and to take such considerations
into account, with other pertinent considerations of national policy. in making
decisions regarding such actions. While based on independent authority. this
Order further the purpose of the National Environmental Policy Act and the
Marine Protection Research and Sanctuaries Act and the Deepwater Port Act
consistent with the foreign policy and national security policy of the United
States, and represents the United States government's exclusive and complete
determination of the procedural and other actions to be taken by Federal
agencies to further the purpose of the National Environmental Policy Act, with
respect to the environment outside the United States. its territories and
possessions.
Sec. 2
2-1. Agency Procedures. Every Federal agency taking major Federal actions
encompassed hereby and not exempled herefrom having significant effects on
the environment outside the geographical borders of the United States and its
territories and possessions shall within eight months after the effective date of
this Order have in effect procedures to implement this Order. Agencies shall
consult with the Department of State and the Council on Environmental
Quality concerning such procedures prior to placing them in effect.
2-2. Information Exchange. To insist in effectuating the foregoing purpose, the
Department of State and the Council on Environmental Quality in collabora-
tion with other interested Federal agencies and other nations shall conduct a
program for exchange on i continuing basis of information conceming the
environment. The objectives of this program shall be to provide information
for we by decisionmaken, to beighten awareness of and interest in environ.
mental conoems and, as appropriate, to facilitate environmental cooperation
with foreign nations.
2-3. Actions Included. Agencies in their procedures under Section 2-1 shall
establish procedures by which their officers baving ultimate responsibility for
authorizing and approving actions in one of the following categories encom-
passed by this Order, take into consideration in making decisions concerning
ouch actions, document described in Section 2(a):
(1) major Federal actions significanůy affecting the environment of the global
commods outside the jurisdiction of any nation (e.g., the oceans or Antarctica);
(b) mejor Federal actions significantly affecting the environment of a foreign
mation not participating with the United Sules and not otherwise involved in
the action;
(c) major Federal actions significandy affecting the environment of a foreign
nation which provide to that Dation:

no prodoch or physical projec! producing principal product or an emission
or efðuent which is prohibited or stricey regulated by Federal law in the
United States because iu toxic Sects on the environment create I serious
public bedth riak: or
(2) • physical project which in the United States is prohibited or strictly
regulated by Federal law to protect the environmeni against radioactive
substances
(d) major Federal actions outside the United States. Its territories and posses-
sions which significantly affect natural or ecological resources of global
importance designated for protection under this subsection by the President.
a. In the care of such a resource protected by international agreement binding
on the United States, by the Secretary of State. Recommendations to the
President under this websection shall be accompanied by the views of the
Cound on Environmental Quality and the Secretary of Susie.
2 Applicable Procedures. (6) There are the following types of documents to
be wed in connection with actions described in Section 2-3:
(i) environmental impact statements (including generic. program and specific
Matements);
(u) bilateral or muluilateral environmental studies, relevant or related to the
proposed action. by the United States and one more foreign nations. or by an
international body or organization in which the United States is a member or
participant: or
(lii) concise reviews of the covironmental Loves involved. including environ
mental assessmenta sommary cavironmental analyses or other appropriate
docudenta
(b) Agencies shell to their procedures provide for preparation of documents
deraibed in Section 44(0), with respect to actions described in Section 2–3.
as follows:
(l) for effects described in Section 2nd an environmental impact statement
dencribed in Section 2010)(i):
(6) for ebects described in Section 2010). a document described in Section 2
Hollü) or (i) u determined by the agency,
fii) for deco described in Section 2010). document described in Section 2-
MaXü) or fish u determined by the ency.
(iv) for effects described in Section 2010). « document described in Section 2-
Woxid (H) or (ii). u deteained by the agency.
Buede procedures may provide that an agency need not prepare a new docu-
med when documeat described is Section 410) already exists.
ke) Nothing in this Order abad serve to lovalidate any existing regulations of
any agency which have been adopted pursuant to court order or pursuant to
Judicial attement of any are to prevent any agency from providing in its
procedure for new citico bo tore provided for herein to further the
purpose of the National Environmental Policy Act and other cavironmental
lowi inchiding the Marine Protection Research and Sunctuaries Act and the
Deepwater Port Act consistent will be foretager and antional security policies
of the United Stata.
to) Proopt us proulded to Bection 256. agencies taking action encompassed
by this Onder shal, u soon u feasible, form other Federal agencies with

4.00. LIEBAT, DURANT 8, 107