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                                                       NUMBER 075
                                                                                              the Environment




                               January 2016
                                                                                              First World Bank Strategy Statement on



                                                       ORIGINALLY PUBLISHED: SEPTEMBER 2011
The World Bank Group Archives Exhibit Series contains exhibits originally
published on the Archives’ external website beginning in 2002. When the
Archives’ website was transferred to a new platform in 2015, it was decided that
older exhibits would be converted to pdf format and made available as a series
on the World Bank’s external database, Documents & Reports.

These exhibits, authored by World Bank archivists, highlight key events,
personalities, and publications in the history of the World Bank. They also bring
attention to some of the more fascinating archival records contained in the
Archives’ holdings.

To view current exhibits, visit the Exhibits page on the Archives’ website.
First World Bank Strategy Statement on the Environment

The World Bank Group recognized the importance of the
environment in its development work -- not in the 1980s
or 1990s -- but over 40 years ago in 1970.

Currently, it is the policy of the Bank Group that careful
attention must be given for the consequences to the
environment and to the health and well-being of affected
peoples in the planning of its development projects.
Though the Bank had, in the past, concerned itself with
the environmental effects of its activities, no systematic
procedure existed to identify and examine those effects.
More importantly, methods to prevent and mitigate
                                                                   James A. Lee
adverse environmental consequences had not yet been
devised.

The World Bank created the Office of the Environmental Advisor in 1970 in
reaction to externally voiced concerns. James A. Lee became the first
Environmental Advisor. His office had a small staff, reviewed all projects, and
recommended changes where necessary. Its impact was modest, and project
officers widely regarded it as an “adversary.” It remained isolated from the
                              mainstream so that, by the mid-1980s, the Bank was
                              lagging behind other multilateral agencies in
                              implementing environmental policies and practices.

                                Several Bank projects (including the Polonoroeste
                                Project in Brazil and the Narmada Project in India)
                                elicited strong negative public reactions due to
                                adverse environmental and social impacts.
                                Complaints were registered by the Bank’s major
                                shareholders and from environmental NGOs. In
                                response, the Bank created an Environment
                                Department in the 1987 reorganization, sharply
                                increased the number of environmental staff,
                                instituted environmental safeguard policies, and
                                launched a program of environmental lending. The
                                new department was given wide responsibilities for
 September 1971 - The first     research, developing new environmental initiatives,
  public statement by the
 Bank about its strategy for   regular environmental reviews of projects (including
     the environment.          authority over environmental design aspects), and
strengthening the Bank’s environmental policies. Under the leadership of
President Conable, the Bank’s allocation of resources to environmental activities
increased substantially after the 1987 reorganization, and by 1995 there were
300 staff in the Environment Department.

The Office of the Environmental Advisor in 1970 was the seed that gave rise to
the robust growth of the Environmental Department beginning in 1987. The first
report issued by the Bank Group on the environment, The World Bank and the
World Environment, was written in September 1971. The importance of this 1971
report marked the beginning of a strategic change in World Bank policy. One of
the first ventures of the Office of the Environmental Advisor was to ensure that
sewer outlets were designed to keep waters clean for swimming and boating in
the tourist areas surrounding Dubrovinik, Yugoslavia. In the 30 month period
between July 1, 1971 and December 31, 1973, the Bank Group reviewed 434
loans and credits from an environmental standpoint. 275 of these revealed no
potential problems. Environmental problems were identified for 135 and were
handled by Bank staff. The remaining 24 projects required special studies by
outside consultants.

While the Bank continues to address country-specific issues with respect to the
environment, it has now responded to the global challenges as well by forming
partnerships with other institutions.