1. LAW, JUSTICE AND DEVELOPMENT WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT November 14-17, 2011 Washington DC LJD LAW JUSTICE and DEVELOPMENT

2. A dispute resolution system for IBRD/IDA Amar Inamdar, Operations Policy & Country Services 2LJD WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT Enhanced Responsiveness Capacity for Dispute Resolution Risk Analysis

3. Investment Conflict Risks: Land, water and labor  “Land, water and labor are the source of the majority of complaints” – CAO at 10  “70% of 192 major infrastructure projects are stalled because of land issues” – Goldman Sachs  Experience of 60/70 major investment projects around the world  Principal at IFC’s CAO – led the dispute resolution team  Effective dispute resolution can be a key strategic approach to addressing complex development issues LJD WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT3

4. Why a risk management approach to grievances & conflict? LJD WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT4 The result is high costs and a ‘chilling effect’ on innovation: there is a lower appetite for addressing challenging development issues The current complaints framework is costly, with little assurance of effective outcomes for people on the ground More importantly, there is increasing risk aversion to sectors that are seen as controversial Developmental and reputational risks are complex and hard to quantify The current approach to addressing these risks typically hinges on procedural / legalistic compliance Yet the compliance framework leaves little room for innovation or flexible problem solving in pursuit of results or tangible outcomes for people on the ground The Bank is in the business of taking risks Effective prediction and responses to feedback, grievances and operational disputes are an inherent part of the risk management paradigm.

5. A framework to promote innovation and more sustainable outcomes LJD WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT5 Projects need mechanisms Organizations need systems From ‘mechanism’ …...to ‘system’ Effective incidence response is important But improved predictive capacity creates value for the Bank, clients, and communities Engaging on better design is a key operational improvement that has wide reaching consequences From ‘reactive’… …to ‘predictive’ Problem solving approaches are inherently more flexible and adapted to reaching locally-owned agreements – the focus is on relationships Compliance supports innovative solution-seeking by parties on the ground, but does not define it. Using better dialogue processes in design stages allows for better development outcomes From ‘ procedural/legalistic’……to ‘relationships and results’

6. Enhanced management support for dialogue and dispute resolution in operations LJD WEEK 2011 INNOVATION AND EMPOWERMENT FOR DEVELOPMENT6 Enhanced Responsiveness Capacity for Dispute Resolution Risk Analysis Internal support function – part of Management Triggered based on risk Predictive, up-front work Flexible, problem solving approach focused on outcomes Non-judgmental Does not change right of access to Inspection Panel or external justice systems Does not require any policy revision Improves accountability and responsiveness Focus is on sustainable development outcomes and impact