Mutual reliance should balance efficiency with accountability

By Accountability Matters

The FMRF between the World Bank and the Asian Development Bank (ADB) was signed in February 2025.  Under the agreement, borrowers in World Bank and ADB co-financings can rely on one set of rules, using the policies and procedures of the lead lender, for all aspects of a project, from design and preparation through to completion and evaluation. While the FMRF has been lauded as a breakthrough for efficiency and a more cohesive multilateral development bank system, concerns have been raised about whether this could be at the expense of social and environmental safeguards…

Stephanie Amoako, Policy Director, Accountability Counsel, expressed the view that civil society consultation on FMRF had been minimal, and that communities had not been given a choice in the matter: “We saw this as a major shift in how accountability has been done in the MDB system since the Inspection Panel was created over 30 years ago. Communities that have been harmed have had the option to choose how they want to bring complaints.” Amoako provided an example of how complaints directed at multiple IAMs on the same project can lead not only to a range of agreements for the complainants, but also bring about changes at different levels within the IAMs and financing institutions concerned.