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Global Accountability
The Equator Principles
Will they further develop?
‘Growth, Conservation and Responsibility’
Seoul, 27th Annual Conference IAIA
3-9 June 2007
Maartje van Putten
History of the Equator Principles
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Private banks follow Chad-Cameroon.
4 July 2003 10 banks, at present 51
IFC as the model or pressure of NGOs?
Serious Stewardship or just PR?
What is it and how will it evolve?
The Principles a Global
Benchmark?
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Globalization: Strong role private sector
Loss of the factor State?
FDI: 91% private sector 9% Public money
Stronger than any other code of conduct
Very promising IF implemented
Equator II an Improvement
• Early Community Participation with affected communities
• Stronger social and environmental Standards: child labor
• Grievance Mechanism and Independent Review of
assessment
• Periodic Reporting
• EPs apply to all new project financings (>10 Million $)
• Upgrades existing facilities
• Also project finance advisory
Still missing in the Principles
• EPs do not apply to High-Income OECD
countries
• Do not apply to corporate loans, debt and
security underwriting
• Not yet: Problem Solving and Compliance
review Mechanism as MFI’s have
• Transparency in implementation weak
Structure of EPFIs
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Principles are voluntary
EPFI’s have common website/secretariat
There are not yet clear ‘Club-rules’.
Fear for anti-trust rules.
Threats to the Principles?
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Weakening of the Standards by EPFI’s
Lack of Transparency criticism of NGO’s
A scandal of ONE EPFI affecting group
Competition with non-EPFI’s > China, India
a.o.
• Quality assurance
Concluding Remarks
• Globalization: Private Sector is taking over
from Public Sector
• Legal Liability is on its way
• Invest in Chinese, Indian etc. Private Financial
Institutions > adopt Principles
• Create an Independent Problem Solving and
Compliance Review Mechanism
Of course they can
participate as soon as
our planning is over
Global Accountability
The Netherlands
Tel. +31-651111553
How do we get there?