Meaning of AIIB's eco-social framework

The Asian Infrastructure Investment Bank's board of directors recently approved the new institution's much talked-about environmental and social framework (ESF) which lays out the levels of protections the bank will have in place to ensure that people and the environment are not inadvertently harmed in its financed projects.

The announcement of the ESF approval came as a surprise to stakeholders that have been hoping to formally weigh in on this critical process, as there was just a brief moment late last year when the first ESF draft was open to comments.

With the release of the AIIB's final ESF, we at Oxfam welcome the fact that it took on board some of our key concerns. First, the AIIB has extended protection to all communities displaced by AIIB-funded projects, giving them the right to restored or improved livelihoods. This critical addition would help prevent millions from being left vulnerable to impoverishment, at least on paper. Significantly, this also means the AIIB now leads the pack - endorsing a standard higher than the Asian Development Bank and current World Bank draft policies.