Consequences of the fragmentation of global environmental governance: the case of safeguards in the financing of large dams

Abstract

This article uses a broad framework to analyse the fragmentation of global governance architectures, and explores the consequences of such fragmentation with specific regard to the stringency of safeguards standards in the financing of large infrastructure projects, using the example of large dams. Drawing on original research, the author shows differences in safeguards stringency at the level of institutional policies, then at the level of projects financed by Public Financing Institutions (PFIs). Safeguards stringency differs substantially between different PFIs. There is fragmentation between multilateral and bilateral PFIs; and fragmentation among bilateral PFIs. The reasons are differences in coordination mechanisms among different PFIs, and diverging interest group pressure on PFIs. The article explores the key consequences of this fact for fragmentation of global governance. Key consequences are likely for ‘ambition’ (the ability of leaders to go further on the ‘standards’ they wish to set); and ‘equity’ (the ability to offer tailored solutions for specific regions or countries).

Keywords:

• Safeguards
• Dams
• Global governance

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. Safeguards systems integrate environmental and social concerns into (financial) decision-making [6].

2. A similar argument applies to social safeguards; but this article focuses on environmental safeguards. There is a related analysis by the same author regarding social safeguards [7].

3. Even poor local communities, supposedly the most important beneficiaries of extensive consultations, expressed exasperation in interview with the burden of repeated consultations and consequent delays in project delivery.

4. This argument is comparable to the one Reinstein [19] makes for the case of climate policy.

5. Caspary discusses ‘country ownership’ [20].

6. Notably Greenhouse Gas Emissions Mitigation, or HFCs (the substances that are meant to replace HCFCs and other ozone-depleting substances; these HFCs may have high global warming potential).