Building_Infrastructure_for_21st_Century

Produced by: Jindal School of International Affairs Center for African, Latin American and Caribbean Studies at O.P. Jindal Global University Delhi NCR, India Conectas Human Rights – Brazil São Paulo, Brazil 2nd edition: November, 2017 Written by: Karin Costa Vazquez, Jindal School of International Affairs Center for African, Latin American and Caribbean Studies, India Supriya Roychoudhury - Center for African, Latin American and Caribbean Studies, India Caio Borges – Conectas Human Rights, Brazil Edition by: Amika Bawa Layout by: Manoj G.D. Anil Khumar Contacts: Center for African, Latin American and Caribbean Studies Conectas Human Rights – Brazil The publication of this case study was made possible thanks to the support Jindal School of International Affairs at O.P. Jindal Global University, Conectas Human Rights – Brazil and the Center for BRICS Studies at Fudan University. TABLE OF CONTENTS Acknowledgements 1 List of Abbreviations 3 Executive Summary 4 1. Background 8 Objectives 9 Methodology 11 2. The BRICS and the big push for infrastructure in the global 12 development agenda Addressing infrastructure needs 13 Traditional MDBs: challenges and limitations 13 An emerging consensus 15 The New Development Bank 15 Relationships 16 Projects and instruments 17 Approaches 18 3. What can the NDB learn from other organizations? 19 Lessons from multilateral development banks 19 Lessons from national development banks and private commercial bank 24 Lessons from research institutions and other organizations 30 4. Emerging opportunities for the NDB 36 Sustainable infrastructure: purpose and rationale 36 The economic/financial argument 36 The operational argument 37 The strategic argument 37 Defining 'sustainable infrastructure' 38 Fundamental principles for a NDB sustainable infrastructure assessment framework 40 Pragmatism, but not conformism 43 Incentivize, rather than regulate 43 Inclusiveness and bottom-up approach 43 Gender responsiveness 44 Strengthen country systems 45 A model for assessing the sustainability of NDB's infrastructure projects 46 5. Operationalizing sustainable infrastructure assessment in the NDB 48 Develop sustainability criteria and a sliding scale of sustainability 48 Create multi-stakeholder task forces and reference group 49 Define incentives for sustainable infrastructure projects 51 Mainstream sustainability assessment and incentive system in operations 52 Promote convergence and serve as a “South hub” of good practices 53 st 6. Building infrastructure for 21 century sustainable development 55 Endnotes 57 References 64 Annex I – Projects approved by the NDB as of September 2017 69 Annex II – Research questions 70 Acknowledgements Realizing the need to go beyond traditional government-to-government cooperation and acknowledging diversity within BRICS, this report is the result of the BRICS Sustainability Index project, an innovative collaboration between academia and non-governmental organizations in the BRICS countries. As such, this report initiates a “track 2.5 diplomacy” to lay down a development financing framework, rooted in sustainable and gender-responsive practices, and contribute to enhanced civil society-NDB interaction for the implementation of the Bank's five-year strategy. 1 2 The authors of this report, Karin Costa Vazquez, Supriya Roychoudhury and Caio Borges, acknowledge the following individuals for their support since the concept stage of the project: C. Raj Kumar and Y.S.R. Murthy (OP Jindal Global University), Sreeram Chaulia (OP Jindal School of International Affairs) and Juana Kweitel (Conectas Human Rights). The authors are deeply grateful to Amika Bawa, Rushil Anand and João Calfat for their invaluable research assistance and overall support to the BRICS Sustainability Index project. 3 We are thankful to Shen Yi, Yang Yang and Xiaochen Hou (Center for BRICS Studies at Fudan University) for receiving Prof. Karin Costa Vazquez as a Visiting Scholar at Fudan University during the month of July 2017 to conduct research and interviews for this report. We are most grateful to Paulo Nogueira Batista Jr. for his interest in the project as well as to Sérgio Suchodolski, Daniel Couto and Anna Kurguzova (New Development Bank) for sharing their valuable perspectives on the research concept and sustainable infrastructure. We are deeply grateful to the many representatives of national development banks, private commercial banks, private foundations, academia, think-tanks, non-government organizations, people's and feminist movements for the interviews they provided. In this connection, we thank Annelise Vendramini (Getúlio Vargas Foundation, Brazil) for her contribution to the model for assessing sustainable infrastructure, Luis Otávio Reiff, Andréa Campos Gomes Fernandes and Luisa Fialho (BNDES, Brazil), Rogério Studart (Brookings Institution, United States), Zhu Jiejin, Zheng Yu, Su Changhe and Chen Zhimin (Fudan University), Quan Heng (Shanghai Academy of Social Sciences, China), Zhang Haibing and Ye Yu (Shanghai Institute of International Studies, China), Yunwen Bai and Anqi Yao (Greenovation Hub, China), Hannah Ryder (Development Reimagined, China), Jayashree Sengupta (Observer Research Foundation, India), Christopher Wells (Santander, Brazil), Oliver Stuenkel and Michelle Ratton (Getúlio Vargas Foundation, Brazil), Julia Fernandes (Movimento dos Atingidos por Barragens, Brazil), Paulo Esteves, Sérgio Veloso dos Santos Júnior and Maria Elena Rodriguez (BRICS Policy Center, Brazil), Bernardo Serra and Clarisse Linke (Institute for Transportation and Development Policy, Brazil), Guilherme Teixeira and Silvia Chicarino (SITAWI, Brazil), Maiara Folly (Igarapé Institute, Brazil), Laura Waisbich (Asul), Mihaela Papa (Massachusetts Institute of Technology, United Sates), Paulina Garzón (China-LAC Sustainable Development Initiative, United States). We are also grateful to Eduardo Viola (University of Brasília, Brazil), Cyril Prinsloo (South Africa Institute for International Affairs, South Africa), and Radha Paudel (Radha Paudel Foundation, India) for their online contribution to the project. We extend our sincere gratitude to the BRICS Feminist Watch and the participants of the workshop “What Future for Development Cooperation: Building Innovative and Inclusive South-South Institutions” (Delhi, August 22-23, 2017), organized as an integral part of this research project: Amit Lahiri (OP Jindal Global University), Anthea Mulakala (Asia Foundation), Neissan Besharati (South African Institute for International Affairs, SAIIA/Institute for Global Dialogue, South Africa), Faith 1 Mabera (Institute for Global Dialogue, South Africa), Priti Darooka (Program on Women's Economic, Social and Cultural Rights, India), Dr. Govind Kelkar (Landesa Rural Development Institute, India), Rebecca Perkins (Women and the New Development Bank, Russia), Divita Shandaliya (Action Aid, India), Dr. Axel Harneit-Sievers and Shalini Yog (Heinrich-Böll Foundation, India), Anirudha Nagar (Accountability Counsel, India), Tomojit Basu (Oxfam, India). We are equally grateful for Joint Secretary Alok Dimri (MEA, India) and Sachin Chaturvedi (Research and Information Systems for Developing Countries, India) for their invitation to Prof. Karin Costa Vazquez to present the preliminary findings of the research during the Delhi Conference on South South and Triangular Cooperation (25-26 August, 2017, Delhi). We are also grateful to Anthea Mulakala (Asia Foundation) for inviting Supriya Roychoudhury to speak at the workshop “Asian Approaches to Development Cooperation: Focus on Women and Girls' Empowerment” (13-14 September 2017, Ulaambaatar, Mongolia). Special recognition goes to Aparna Raman for her administrative support to the workshop “What Future for Development Cooperation: Building Innovative and Inclusive South-South Institutions.” We are also thankful to our graphic designers Manoj G.D and Anil Kumar. We also thank Daniel Girardi Deiro for his constant support and encouragement to the BRICS Sustainability Index project. 2 List of Abbreviations ADB Asian Development Bank AIIB Asian Infrastructure and Investment Bank BNDES Brazilian Development Bank BRICS Refers to the group of countries Brazil, Russia, India, China and South Africa CBI Climate Bonds Initiative CESSTD Committee on Environmental and Social Sustainability and Territorial Development CSOs Civil Society Organizations CSR Corporate Social Responsibility DBSA Development Bank of South Africa EMDCs Emerging Markets and Developing Countries ESF Environmental and Social Framework ESG Environmental, Social and Governance G-20 Group of Twenty GRI Global Reporting Initiative GVces Getúlio Vargas Foundation Centre for Sustainability Studies, Brazil IADB Inter-American Development Bank IBRD International Bank for Reconstruction and Development ICIJ International Consortium of Investigative Journalists IDA International Development Agency IFC International Finance Corporation IFIs International Financial Institutions ILO International Labor Organization IMF International Monetary Fund LCA Life Cycle Assessment MDB Multilateral Development Bank NAPs National Action Plans NDB New Development Bank NDC Nationally Determined Contributions NGOs Non-Governmental Organizations SDGs Sustainable Development Goals UN United Nations UNFCCC United Nations Framework Convention on Climate Change