The Integration of Labour Standards Concerns into the Environmental and Social Policy of the International Finance Corporation

Franz Christian Ebert

doi:10.5771/0506-7286-2014-2-229

Contents
- Chapter Expand | CollapseAuthorsPage
- 145–146 Editorial 145–146
  - 145–145 Editorial Michael Riegner, Philipp Dann Michael Riegner, Philipp Dann 145–145
  - 146–146 Editorial Michael Riegner, Philipp Dann Michael Riegner, Philipp Dann 146–146
- 147–269 Abhandlungen/Articles 147–269
  - 147–197 The BRICS Bank’s potential to challenge the field of development cooperation Mariana Mota Prado, Fernanda Cimini Salles Mariana Mota Prado, Fernanda Cimini Salles 147–197
  - 198–228 A Pebble in the Shoe: Assessing the Uses of Do No Harm in International Assistance Adrian Di Giovanni Adrian Di Giovanni 198–228
  - 229–249 The Integration of Labour Standards Concerns into the Environmental and Social Policy of the International Finance Corporation Franz Christian Ebert Franz Christian Ebert 229–249
  - 250–269 Assessing Capacity Development in World Bank ‘Program-for-Results’ Financing Maninder Malli Maninder Malli 250–269
- 270–275 Buchbesprechungen/Book Reviews 270–275
  - 270–272 Tied Aid and Development Aid Procurement in the Framework of EU and WTO Law (Annika Engelbert) Annamaria La Chimia Annamaria La Chimia 270–272
  - 272–275 The Inter-American Court of Human Rights: Case-Law and Commentary (Simon Hentrei / Ximena Soley) Laurence Burgorgue-Larsen, Amaya Úbeda de Torres Laurence Burgorgue-Larsen, Amaya Úbeda de Torres 272–275
- 276–280 Bibliographie/Bibliography 276–280
  - Bibliographie / Bibliography
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VRÜ Verfassung und Recht in Übersee , page 229 - 249

The Integration of Labour Standards Concerns into the Environmental and Social Policy of the International Finance Corporation

Autoren

Franz Christian Ebert

DOI
- doi.org/10.5771/0506-7286-2014-2-229
- ISSN: 0506-7286
- ISSN online: 2941-9603
Abstract

The present article examines how the International Finance Corporation (IFC), the World Bank Group’s private sector finance institution, has integrated labour standards concerns into its environmental and social policy. Providing finance to companies in developing countries where available capital is often scarce, the IFC has significant economic leverage to influence the labour standards performance of private sector actors. Through its “Performance Standards”, adopted in 2006, the IFC makes compliance with a broad set of labour standards a binding condition for access to its financial support. This also involves a procedural framework to bring client companies into compliance, including an external complaint mechanism under the World Bank’s Compliance Advisory Ombudsman (CAO). However, a closer look reveals a number of shortcomings that may undermine the effectiveness of the Performance Standards in terms of fostering labour standards. These range from the Performance Standards’ coherence with the ILO’s Core Labour Standards to loopholes allowing companies to escape certain labour-related requirements by changing their business structure. Furthermore, the relevant procedures involve a high amount of discretion, which suggests that the ultimate outcomes will depend significantly on the goodwill of the body reviewing the complaint. Still, it appears that trade unions and NGOs have sometimes been able to use the Performance Standards to enforce labour standards vis-à-vis IFC client companies by triggering interventions by IFC staff and the CAO. Despite their limitations, it seems therefore that the IFC Performance Standards can at least occasionally serve as a tool for addressing labour standards problems in developing countries and should therefore be tested further.
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