Country legislation to manage social risks of investment projects
This report provides examples from around the world of ways in which social risks of investment projects are assessed and managed in national EIA legislation and in other legislation.
In national Environmental Impact Assessment (EIA) legislation, social risks of investment projects tend to be inadequately considered. This often leads to poor assessment and mitigation, worse-off outcomes for communities, and makes it difficult for investment projects to conform with international standards. Even if a project’s legal framework extends to other laws and regulations that cover aspects of social risk that are missing from EIA law (such as labour law, mineral law, forestry law, etc.), coordination between multiple regulatory agencies is typically limited and implementation capacity is weak. This leaves risks unattended, even if the impact assessment (IA) has been prepared according to international standards and may address them.
The assignment that led to this report sought to understand how such issues are addressed in different countries. Community Insights Group (CIG) was engaged by The World Bank to identify international examples of ways in which social risks of investment projects are assessed and managed in processes prescribed in national EIA legislation and other legislation and how these processes are integrated and mutually support each other.
This report has been written primarily to support The World Bank’s ongoing institutional strengthening efforts in Indonesia. Its contents are also beneficial to a broader international audience of social performance professionals.
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