Time for a new approach to environmental and social protection at multilateral development banks

The existing multilateral development bank (MDB) safeguards do not tackle the primary developmental issue in environmental and social oversight, which is rooted in weak legal structures and the capacity to implement them. Efforts to guard against the negative social and environmental impacts of infrastructure projects frequently fall short in numerous developing countries. Neglecting such impacts can risk not only the success of an investment project itself but also weaken a nation's social coherence and environmental sustainability more broadly, with potential global consequences involving climate change, conflict, and migration. While a number of countries increasingly acknowledge this and are thereby enhancing their oversight frameworks, others maintain a short-term view by advancing with projects first and addressing problems afterwards. The current safeguard system does not yield the best developmental results, which increasingly motivates countries to outright avoid MDBs for projects that might trigger safeguards. MDBs must shift to a new strategy, focusing on bolstering the national laws and regulations of developing countries rather than shielding themselves from criticism. This shift requires major adjustments in MDB policies and operations, but most importantly, it demands a change in the mindset concerning the best way to achieve optimal developmental outcomes for the planet's welfare.