Inter-American Development Bank (IDB) | Independent Consultation and Investigation Mechanism (MICI)

  • Overview

    Accountability Counsel advocates for the Inter-American Development Bank Group’s Independent Consultation and Investigation Mechanism (MICI) to be as effective as possible, meaning that it must be independent, legitimate, fair, transparent, predictable, and accessible.

    Inter-American Development Bank (IDB)

    Created In: 1959

    Headquarters: Washington, D.C., United States

    Member Countries: 48

    Largest Shareholders: United States

    Mission: Through financial and technical support for countries working to reduce poverty and inequality, help improve health and education, and advance infrastructure.

    The Accountability Office: Independent Consultation and Investigation Mechanism (MICI)

    Established in: 2010

    Functions: Consultation (Dispute Resolution), Compliance Review

    Visit Our Mechanism Resources Page to learn more about submitting a complaint to the MICI

    Visit MICI’s website

    The Inter-American Development Bank Group (IDB Group) is a regional development bank providing loans, grants, technical assistance, and guarantees to fund public (through the IDB) and private sector projects in its 26 borrowing countries in Latin America and the Caribbean. In January 2016, the IDB Group consolidated its private sector operations in the Inter-American Investment Corporation (IIC), which is also known as IDB Invest.

    In order to safeguard the efficacy of the MICI as a tool for communities to seek redress for harm caused by IDB projects, Accountability Counsel has advocated for fairness and impartiality in the consultation phase, an independent external consultative group, robust community access to development information, and private-sector safeguards.

    Accountability Counsel has advocated for greater accountability through a number of policy reviews that have taken place at the IDB in recent years. Since 2019, the IDB has completed or undertaken reviews of the IDB and IDB Invest Access to Information policies, the IDB Invest Environmental and Social Sustainability Policy, and the IDB Environmental and Social Policy Framework.

    While preparing for a future review of the MICI policy, Accountability Counsel has also sought to bolster transparency and accessibility to MICI through these related reviews. Our advocacy has resulted in revisions that more clearly highlight MICI’s role in handling complaints arising from possible non-compliance with these policies, clarify the circumstances under which MICI is available, and promote greater dissemination of MICI information during the consultation phases of a project. Together, these provisions will help raise awareness among communities about MICI and ultimately enhance accountability at the IDB.

  • Our Advocacy

    Accountability Counsel has advocated for the Inter-American Development Bank Group’s Independent Consultation and Investigation Mechanism (MICI in Spanish) to be an accessible and robust accountability office for communities in Latin America and the Caribbean to seek redress for harm caused by IDB projects. We have actively engaged in reviews of the office’s policies and other activities to ensure that the office and the larger IDB Group accountability framework are effective.

    Advocating for Fairness and Impartiality in Consultation Phase Processes

    MICI’s consultation phase facilitates a voluntary dispute resolution process for parties, including complainants, the IDB, and the client, to address community grievances about a project and reach a mutually agreeable solution. In March 2018, Accountability Counsel submitted comments on draft consultation phase guidelines, which were developed by MICI to standardize its approach to the consultation phase according to its policy requirements, and ensure ethical, transparent, and effective case management. Drawing from our extensive experience in dispute resolution processes around the world, we also provided input during an in-person civil society dialogue meeting on the draft guidelines with MICI. MICI released the final version of the guidelines in April 2018, and the document incorporated much of our input. For example, the guidelines now reflect that during a consultation phase process, parties should receive impartial and fair treatment as opposed to equal treatment. With the context of asymmetrical power relations between the parties, as is often the case for such processes, equal treatment may not guarantee a fair process.

    Promoting the Independence of the External Consultative Group

    In response to the recommendations in the publication, Glass Half Full? The State of Accountability in Development Finance, which we co-authored with 10 of our partners, MICI committed to creating an external consultative group (Grupo Consultivo Externo in Spanish or GCE) in 2016 to better reflect an understanding of the people impacted by the IDB in MICI in decision-making. In August 2016, we provided input on the GCE’s operating procedures. We successfully advocated for the removal of IDB staff as potential GCE members, contributing to the effectiveness and independence of the GCE and MICI. The list of the current GCE members can be found on MICI’s website. 

    Ensuring Robust Access to Information and Safeguards

    Accountability Counsel has advocated for greater accountability through a number of policy reviews that have taken place at the IDB in recent years. Since 2019, the IDB has completed or undertaken reviews of the IDB and IDB Invest Access to Information policies, the IDB Invest Environmental and Social Sustainability Policy, and the IDB Environmental and Social Policy Framework.

    Working with partners, we have worked to translate our community case experience in Colombia, where provisions of the IDB’s access to information policy limited the communities’ ability to fully understand MICI’s findings and what took place during the course of the project, into policy change during the access to information policy review process for both the IDB and IDB Invest, the private-sector arm of the IDB Group. Working with several partners, including International Accountability Project and FUNDEPS, we have contributed to multiple submissions on the IDB Invest policy review, as well one for the first phase of the IDB policy review. In addition, we participated in multiple in-person consultations on the policies in Washington, D.C. The final IDB Invest policy, approved by the board of directors in June 2019, reflects some of our recommendations, though the bank still needs to narrow and more clearly delineate which information the bank can keep confidential. The next phase of the IDB policy review is expected to begin later this year.

    Accountability Counsel also joined civil society partners in calling for stronger environmental and social safeguards for IDB financing during the reviews of both the IDB Invest Environmental and Social Sustainability Policy (Sustainability Policy) and the IDB Environmental and Social Policy Framework (ESPF). In multiple joint submissions on both policies, we joined civil society organizations from around Latin America to call for robust environmental safeguards, a strong commitment to Free, Prior and Informed Consent, and additional standards for stakeholder engagement and gender equality, among other recommendations. The submissions also called for the bank to more clearly highlight MICI’s role in handling complaints arising from possible non-compliance with these policies, clarify the circumstances under which MICI is available, and promote greater dissemination of MICI information during the consultation phases of a project. The final Sustainability Policy was approved in April 2020 and the final ESPF in September. The ESPF review in particular saw recommended improvements that will improve accessibility to MICI for local communities.

    We will continue to work with partners to ensure strong safeguards and that communities have the information they need to raise their voices concerning IDB projects.

    See here for more information on Accountability Counsel’s advocacy to the IDB.

  • Past Advocacy
  • Resources

    Inter-American Development Bank (IDB)

    Created In: 1959

    Headquarters: Washington, D.C., United States

    Member Countries: 48

    Largest Shareholders: United States

    Mission: Through financial and technical support for countries working to reduce poverty and inequality, help improve health and education, and advance infrastructure.

    The Accountability Office: Independent Consultation and Investigation Mechanism (MICI)

    Established in: 2010

    Functions: Consultation (Dispute Resolution), Compliance Review

    Visit MICI’s website

    Projects funded by the IDB must follow the IDB’s general operational policies, sector policies, and procurement of goods and services policy, among others. The IDB also has an Access to Information Policy, which governs public access to information related to the IDB’s operations and IDB-funded projects.

    The IDB Invest Environmental and Social Sustainability policy establishes the environmental and social commitment and requirements for IDB Invest operations. The policy is underpinned by the IFC Performance Standards. Additionally, the IDB Invest must abide by its Disclosure of Information policy.

    The Accountability Office

    The Independent Consultation and Investigation Mechanism (MICI in Spanish) is designed to address grievances from people who are or who might be negatively affected by IDB-financed operations. The accountability office is available for IDB and IDB Invest projects as well as projects financed under IDB Lab.

    MICI offers two functions:

    The Consultation Phase: in this phase, the parties are provided an opportunity to address issues related to harm caused by failures of an IDB-financed project in a flexible and consensual way.

    The Compliance Review Phase: in this phase, a panel of experts investigates IDB’s compliance with its own policies. If the panel finds instances of noncompliance the IDB board of directors will decide how to respond, which may involve altering the project.

    Submit a complaint to MICI if:

    • You are two or more people, a group, organization, or their representative;
    • You live in the country receiving IDB project support (unless the person submitting is a representative);
    • You are or anticipate being affected by the IDB project;
    • You have attempted to resolve your concerns about the project with IDB management; and
    • It has been less than 24 months since the last disbursement to the project.

    You can request both a consultation and a compliance review, but the consultation phase is conducted first. During the consultation phase, MICI will determine eligibility of the complaint and then proceed to consult with the parties. The consultation phase concludes with the filing of a report distributed to the stakeholders, board, and the public, and may include monitoring of any potential agreement reached.

    If the consultation phase has been terminated without a solution (and the complainants initially requested both functions) or if the complainants only requested compliance review, MICI will determine eligibility for compliance review. If eligible, the panel will investigate whether the bank violated its own operational policies. A compliance report is issued, and the report is given to the parties and made public. The board will decide on any necessary action to address non-compliance, and upon request from the board, the Panel will monitor any implementation actions.

    For more information, see our Accountability Resource Guide or visit MICI’s website.

  • Documents

    Institutional Documents

    IDB Environmental and Social Policy Framework

    IDB Invest Environmental and Social Sustainability Policy

    IDB Access to Information Policy

    IDB Invest Access to Information Policy

    Consultation Phase Guidelines

    2014 MICI Policy

    2010 MICI Policy

    Additional IDB Policies: Available here.

    Additional IDB Invest Policies: Available here.

     

    Key Documents by Release Date

    Feb 2023 – Accountability Counsel joined 22 organizations from Latin America and the United States to send a letter to the president of the Bank, seeking stronger human rights and environmental protections and better opportunities for civil society engagement.

    Sep 2020 – IDB Board of Directors approved the final Environmental and Social Policy Framework.

    Aug 2020 – Accountability Counsel and partners submitted additional recommendations on the second draft Environmental and Social Policy Framework.

    Apr 2020 – Accountability Counsel and partners submitted joint recommendations on the proposed draft Environmental and Social Policy Framework.

    Apr 2020 – IDB Board of Directors approved the final IDB Invest Sustainability Policy.

    Oct 2019 – Accountability Counsel and partners submitted joint recommendations on the proposed draft Sustainability Policy of IDB Invest.

    Mar 2019 – IDB Board of Directors approved the final Access to Information Policy of IDB Invest.

    Sep 2018 – Accountability Counsel and partners submitted joint recommendations on the proposed draft Access to Information Policy of IDB Invest.

    Apr 2018 – MICI released the final version of the Consultation Phase Guidelines, which incorporated much of Accountability Counsel’s input. This includes, but is not limited to, changes reflecting that during a consultation phase process, parties should receive impartial and fair treatment, as opposed to equal treatment.

    Mar 2018 – Accountability Counsel and partners submitted comments on the draft Consultation Phase Guidelines developed by MICI to standardize its approach to the consultation phase according to its policy requirements, and ensure ethical, transparent, and effective case management.

    Sep 2017 – Accountability Counsel and partners submitted joint recommendations on the Disclosure of Information Policy of IDB Invest, the private arm of the Inter-American Development Bank.

    Dec 2014 – IDB released an updated MICI Policy. This new policy replaced the original MICI policy that had taken effect in February 2010.

    Sep 2014 – Accountability Counsel and partners submitted joint comments on the IDB’s draft Revised Independent Consultation and Investigation Mechanism Policy (MICI Policy).

    Jul 2014 – IDB President’s office responded to our letter, assuring that the President and Board shared our commitment to making MICI an effective mechanism for both the institution and affected communities.

    Sep 2013 – Accountability Counsel and partners submitted joint comments on the IDB’s Independent Consultation and Investigation Mechanism Policy.

    Dec 2012 – IDB’s Office of Evaluation and Oversight (OVE) released an Evaluation of the Independent Consultation and Investigation Mechanism.

    Sep 2011 – Accountability Counsel sent a letter to the IDB President and Board of Directors, calling for action to address issues with MICI’s functioning and policies.

    Aug 2011 – Accountability Counsel submitted a briefing paper, highlighting problems with implementation of the MICI policy, and requesting action to address the concerns.

    Feb 2010 – IDB released its revised MICI policy, after adopting some recommendations from Accountability Counsel and other organizations.

    Jun 2009 – Accountability Counsel submitted comments on the IDB’s proposed Independent Consultation and Investigation Mechanism draft policy.

    Apr 2009 – IDB released a proposed independent consultation and investigation mechanism policy and invited comments on its draft policy.

     

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  • Media

    Media Coverage