Banking on the Environment: Multilateral Development Banks and Their Environmental Performance in Central and Eastern Europe (Global Environmental Accord: Strategies for Sustainability and Institutional Innovation)

282 Pages·2002·3.08 MB·English

by  Tamar L. Gutner

Banking on
the Environment
Multilateral Development
Banks andTheir Environmental
Performance in Central and
Eastern Europe
Tamar L. Gutner
Banking on the Environment
Global Environmental Accord: Strategies for Sustainability and
Institutional Innovation
Nazli Choucri, editor
NazliChoucri,editor,GlobalAccord:EnvironmentalChallengesandInternational
Responses
PeterM.Haas,RobertO.Keohane,andMarcA.Levy,editors,Institutionsforthe
Earth:SourcesofEffectiveInternationalEnvironmentalProtection
RonaldB.Mitchell,IntentionalOilPollutionatSea:EnvironmentalPolicyandTreaty
Compliance
RobertO.KeohaneandMarcA.Levy,editors,InstitutionsforEnvironmentalAid:Pit-
fallsandPromise
OranR.Young,editor,GlobalGovernance:DrawingInsightsfromtheEnvironmental
Experience
JonathanA.FoxandL.DavidBrown,editors,TheStruggleforAccountability:The
WorldBank,NGOS,andGrassrootsMovements
DavidG.Victor,KalRaustiala,andEugeneB.Skolnikoff,editors,TheImplementation
andEffectivenessofInternationalEnvironmentalCommitments:TheoryandPractice
MostafaK.Tolba,withIwonaRummel-Bulska,GlobalEnvironmentalDiplomacy:Ne-
gotiatingEnvironmentalAgreementsfortheWorld,1973–1992
KarenT.Litfin,editor,TheGreeningofSovereigntyinWorldPolitics
EdithBrownWeissandHaroldK.Jacobson,editors,EngagingCountries:Strengthening
CompliancewithInternationalEnvironmentalAccords
OranR.Young,editor,TheEffectivenessofInternationalEnvironmentalRegimes:
CausalConnectionsandBehavioralMechanisms
RonieGarcia-Johnson,ExportingEnvironmentalism:U.S.MultinationalChemicalCor-
porationsinBrazilandMexico
LasseRingius,RadioactiveWasteDisposalatSea:PublicIdeas,TransnationalPolicyEn-
trepreneurs,andEnvironmentalRegimes
RobertG.Darst,SmokestackDiplomacy:CooperationandConflictinEast-WestEnvi-
ronmentalPolitics
UrsLuterbacherandDetlefF.Sprinz,editors,InternationalRelationsandGlobalCli-
mateChange
EdwardL.Miles,ArildUnderdal,SteinarAndresen,JørgenWettestad,JonBirger
Skjæseth,andElaineM.Carlin,EnvironmentalRegimeEffectiveness:ConfrontingThe-
orywithEvidence
ErikaWeinthal,StateMakingandEnvironmentalCooperation:LinkingDomesticand
InternationalPoliticsinCentralAsia
CoreyL.Lofdahl,EnvironmentalImpactsofGlobalizationandTrade:ASystemsStudy
OranR.Young,TheInstitutionalDimensionsofEnvironmentalChange:Fit,Interplay,
andScale
TamarL.Gutner,BankingontheEnvironment:MultilateralDevelopmentBanksand
TheirEnvironmentalPerformanceinCentralandEasternEurope
Banking on the Environment
Multilateral Development Banks and Their
Environmental Performance in Central and
Eastern Europe
Tamar L. Gutner
The MIT Press
Cambridge, Massachusetts
London, England
 2002MassachusettsInstitueofTechnology
Allrightsreserved.Nopartofthisbookmaybereproducedinanyformbyany
electronicormechanicalmeans(includingphotocopying,recording,orinforma-
tionstorageandretrieval)without permissioninwriting fromthepublisher.
ThisbookwassetinSabonbyAchornGraphicServices,Inc.,withtheMiles33
system andprintedandboundinthe UnitedStates ofAmerica.
LibraryofCongressCataloging-in-PublicationData
Gutner,TamarL.
Bankingontheenvironment:multilateraldevelopmentbanksandtheirenviron-
mentalperformanceinCentralandEasternEurope /TamarL.Gutner.
p. cm.—(Globalenvironmentalaccord)
Includesbibliographicalreferences(p. )andindex.
ISBN0-262-07235-1(hc.:alk.paper)—ISBN0-262-57159-5(pbk.:alk.paper)
1. Development banks—Europe, Central. 2. Development banks—Europe,
Eastern. 3.Environmentalpolicy—Europe,Central. 4.Environmentalpolicy—
Europe, Eastern. 5. Economic development—Environmental aspects—Europe,
Central. 6. Economic development—Environmental aspects—Europe, East-
ern. I.Title. II.Globalenvironmentalaccord.
HG1976.C36G88 2002
333.7′0943—dc21
2002021917
Contents
Acknowledgments ix
1 Introduction and Overview 1
2 Intellectual Context: Understanding MDB Greenness 19
3 Bargaining and Delegation: The Birth of Environmental
Mandates 47
4 Policy Process: Institutionalizing Environmental Objectives 75
5 MDB Environmental Policies and Practice in Central and Eastern
Europe 131
6 Conclusions 193
Notes 203
References 241
Index 259
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Series Foreword
Anewrecognitionofprofoundinterconnectionsbetweensocialandnatu-
ral systemsis challengingconventional constructsand thepolicy predis-
positions informed by them. Our current intellectual challenge is to
developtheanalyticalandtheoreticalunderpinningsofanunderstanding
oftherelationshipbetweenthesocialandthenaturalsystems.Ourpolicy
challenge is to identify and implement effective decision-making ap-
proaches to managing the global environment.
TheseriesonGlobalEnvironmentalAccordadoptsanintegratedper-
spectiveonnational,international,cross-border,andcross-jurisdictional
problems,priorities,andpurposes.Itexaminesthesourcesandtheconse-
quencesofsocialtransactionsastheserelatetoenvironmentalconditions
andconcerns.Ourgoalistomakeacontributiontobothintellectualand
policy endeavors.
Nazli Choucri
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Acknowledgments
ThisbookbeganasadissertationprospectusinthePoliticalScienceDe-
partment at MIT. At the time, I was struck by the World Bank’s efforts
tofashionitselfaleadingactoringlobalenvironmentalgovernanceamid
unrelenting criticism from nongovernmental organizations. As a former
financialjournalistwhocoveredbankinganddevelopmentfinanceissues
forAP–DowJonesinNewYorkandLondon,Iwascuriousaboutwhat
being ‘‘green’’ meant in a large international financial institution. What
wastheexplanationfortheseeminggapbetweentheBank’srhetoricand
its alleged actions?
Idecidedacomparativestudywasnecessarytounderstandthefactors
that shape the ability of a multilateral development bank (MDB) to re-
spond to environmental mandates. I also felt it was important to focus
on the activities of a set of these institutions in a common geographical
region. Central and Eastern Europe was the obvious choice, because it
most challenged an MDB’s ability to harmonize its economic develop-
ment and environmental protection and management strategies. The
WorldBankandtwootherMDBs—theEuropeanBankforReconstruc-
tion and Development (EBRD) and European Investment Bank (EIB)—
wereamongthetopdonorsintheregion.AsIdevelopedthetopic,Iwas
surprisedtolearnthatvirtuallynoresearchexistedontheenvironmental
behavior of the EIB. This was curious, given the level of attention and
criticism that surrounds the World Bank’s actions, while the EIB now
lendsmoreeachyearthantheWorldBankbuthasmadefarfewerefforts
to reform itself in ways that increase its performance and transparency.
The EIB is a global actor, even though the majority of its lending is to
European Union member states.