World Bank - Forests

Questions on the help for eradicating poverty through certain sectors not only go for the mining, oil and gas sector but as well for the forest sector.

In February 2007 the World Bank had a review done “Forests in post-conflict Democratic Republic of Congo – Analysis of a Priority Agenda”. The report came to the conclusion: “Industrial timber production has a poor record in Africa. Over the past sixty years, there is little evidence that it has lifted rural populations out of poverty or contributed in other meaningful and sustainable ways to local and national development.”

Greenpeace looked into the role of the World Bank financing in the forest sector in the Democratic Republic of Congo where the bank failed to ensure a moratorium over dubious logging concessions was enforced. The report calls on the World Bank to take action for protecting large areas of intact rainforest through a moratorium on any new logging titles until there is comprehensive national land use planning that prioritises the needs of local people and local, regional and global environment.

• Read the report “Carving up the Congo” by Greenpeace, 11. April 2007

The World Bank showed reaction on some outcomes of the report in the case of the Singapore timber trading company “Olam”: In this case Greenpeace wrote to the IFC pointing out that Olam sourced timber from destructive and illegal operations from the Democratic Republic of Congo through subcontracting agreements. The latter were made with third-party suppliers involved in illegal logging. The letter effected in the IFC dropping its 3,35 per cent equity stake in Olam, worth up to US$7,5 million.

• “IFC to offload $7,5 million Olam stake” Financial Times 9. December 2007