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In addition, A.I.D., under the Foreign Assistance Act,

takes fully into account the environmental consequences of any

proposed program or project which may significantly affect the

environment of the country concerned.

The Agency engages host

country decision-makers in a full discussion of significant

environmental effects of a proposed program or project prior to

making a decision whether to proceed.

Reflecting increased public and Congressional concern for

the environmental effects of MDB lending, the State Department

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of bank staffs to conduct environmental and socio-cultural

assessments.

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All donor countries who have responded to date favor

increased support of the MDBs to ensure in-depth analysis of

environmental and socio-cultural implications of loan

projects.

At the same time there is a strong feeling among

these countries that environmental assessments and staffing are

the primary responsibility of the banks, and that secondment of

specialists from donor countries is not sufficient to ensure

thorough environmental reviews of projects.

Several countries, including Norway, Italy and the U.S.,

have begun to second staff to the banks, recognizing the

immediate need to ensure that bank loan assessments include

environmental review.

The regional banks are following the

lead taken by the World Bank to increase staff in environmental

and socio-cultural analysis.

However, progress in these banks

has been relatively slow.

We have initiated a dialogue with principal donor countries

offering to share information from our early warning system and

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Economic Cooperation and Development (OECD) to adopt an

environmental checklist which could be used in conducting

project reviews by countries as well as the banks.

Last June,

the Governing Council of the United Nations Environment

Programme (UNEP) adopted "Goals and Principles of Environmental

Impact Assessments" consistent with NEPA and E.O. 12114.

Formulation of the goals and principles was initiated by the

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In our efforts to bring about environmentally-sound

development, we have been guided by a few foreign policy

principles.

First of all, we believe that the multilateral.

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endorse the steps already taken by the World Bank to strengthen

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sources,

we believe that long-term efforts should aim at host

country design which does not need outside supervision.

We

must not divert our efforts or attention from this objective.

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Secondly, we believe that development banks must be

reformed multilaterally.

No one country, including the United

States, has the capability to change the policies of the banks

alone.

This is why our efforts have stressed coordination

among other bank donors.

Only by pooling our efforts with

other countries can we bring about the changes necessary to

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our efforts will become less effective if the voting power of

our Executive Directors on environmentally sensitive loans is

for all intents and purposes paralyzed.

This could end the

collaborative approach that is indispensable for the efficient

operation of international organizations.

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