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This report reviews the experience and outcomes of the funding by International Financial Institutions (IFIs) of projects in the extractive industries. It presents short case studies of experiences in the Philippines, Laos, Papua New Guinea, Peru, Romania, Colombia, Chad, Cameroon, Nigeria, Benin, Togo, Ghana, which then uses to make recommendations. The report argues that:IFIs have pressured governments in poor countries to rigorously open up to foreign investment in the extractive industries, and have channelled billions of dollars directly to large transnational corporations (TNCs) to finance the construction of drilling platforms, pipelines and large-scale mineswhile the external debt continues to grow and on the ground development benefits have yet to materialise, the coal, oil, gas and minerals are exported out of the countriesthis export-led development paradigm has been devastating for local communities: poverty is soaring, and ecosystems are ravagedcorporations, which rake in large profits, benefit the most from this lopsided arrangementRecommendations include:IFIs should establish a plan to phase out investments in the extractive sectors, including structural adjustment lendingas a first and immediate step, IFIs should establish no-go areas such as protected areas, indigenous peoples’ zones and areas of armed conflict, where they will not promote oil, mining and gas projectsIFIs should focus their remaining investments in extractive industries on the closing down of mines, on helping displaced industry workers to find new jobs, on restoring degraded ecosystems and communities, and on the shift towards renewable energy projectsall actors involved should cooperate in repairing the damage done by past projectsgovernments should shift their financial support to decentralised and participatory initiatives that truly benefit people and the environment (i.e. a transition to renewable, efficient and decentralised energy production for sustainable societies)[adapted from author]
