Additions to IDA Resources: Twelfth Replenishment
A Partnership for Poverty Reduction
December 23, 1998
International Development Association Excerpts addressing Core Labor Standards 18. Labor. Child labor, often exploitative and harmful, limits children's education
possibilities and degrades their health and welfare, while forced labor damages the health and
welfare of workers and undermines their future productivity. Deputies noted the recent inclusion
of a condition in the Multilateral Investment Guarantee Agency’s (MIGA) general rules for
guarantees requiring the investor to refrain from using forced labor or employing harmful child
labor and the steps towards ensuring that harmful child labor will not be employed in World
Bank-financed projects. They also noted the World Bank paper “Child Labor: Issues and
Directions for the World Bank” and urged that the World Bank further strengthen its efforts in
this area. Where country practices and policies have a negative impact on the country's
development prospects, these issues should be part of the World Bank's dialogue with that
country and addressed in the CAS. Deputies welcomed IDA's consultations with international
organizations, such as the International Labour Organization (ILO), in its work with countries on
labor issues and parallel work being carried out with the International Monetary Fund. They
proposed further collaboration on core labor standards, possibly including the exploration of core
labor standards in a conference with broad participation. 35. The country performance criteria used by IDA are periodically reviewed and refined to
reflect experience, and the Deputies recommended that modifications be made to these criteria as
described in Annex A. The Deputies asked Management to ensure that the method for evaluating
country performance be kept under review to strengthen the emphasis on policies leading to
sustainable, pro-poor growth and requested annual reviews on the criteria and indicators used in
the performance assessment, and the lending implications of performance assessments. They
also asked Management to share country performance assessment information with development
partners while safeguarding confidential information. Three issues are of particular importance
and will be the focus of further work: the need to take fully into account the role of participatory
processes in “sustainability” assessments; the need to incorporate access to resources and
opportunities by the poor, particularly women and minorities, in all relevant criteria -- including
the role of factor markets and core labor standards; and the consideration of the extent and
impact of non-developmental expenditures. In addition, further work will take into account
lessons emerging from operational experience and advice from inside and outside the World
Bank, including from IDA borrowers. Deputies requested an annual review of the country
performance assessments and the criteria used for IDA allocations , including their implications
for poor performers and turn-around countries and the treatment of governance. 49. In addition to careful analysis of the poverty and macroeconomic situation, CASs need to
be grounded in a systematic analysis of key issues with an impact across many economic and
social sectors, including governance, gender, environment, core labor standards, and the financial
sector. Deputies recommended that CAS diagnostic treatment of these cross-cutting issues
should be improved. These analyses should draw as warranted on the expertise and support of
the entire World Bank Group, including the World Bank's thematic networks, and of institutions
such as the IMF, ILO and World Trade Organization (WTO).[...] Where these are identified as
priority issues, they should be addressed in the operational program. Top |
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