Financing ‘Development’, Capitalizing Inequalities

Across Asia Pacific, the Asian Development Bank (ADB) has been funding various infrastructure projects. This shows the widespread influence of the ADB as a major provider of development finance in the region, with the capacity to influence the development of the region and of specific localities.

Projects being implemented include irrigation systems, power plants and gas projects. According to the data from the  CSO Aid Observatorio , the ADB has presence in the following countries: Azerbaijan, Uzbekistan, Georgia, Mongolia, Nepal, Indonesia, Laos, Myanmar and the Philippines. 

Zeroing in on the region of Central Asia, three ADB-funded projects have been documented in the CSO Aid Observatorio, which includes the Amu-Bukhara Irrigation System Rehabilitation Project in Uzbekistan, the Shah Deniz Stage II Gas Field Expansion Project in Azerbaijan and the Nenskra Hydropower Project in Georgia. 

Projects in Azerbaijan and Georgia target access to renewable energy, while the Uzbekistan project addresses access to water. While these projects are aimed at addressing the lack of resource management in these communities, ADB only further exploited the natural resources and the people of Central Asia. In these projects, Indigenous Peoples, farmers, fisherfolk, and urban peoples remain vulnerable to the negative impacts of ADB policies and strategies. 

Lack of consultations, accountability and transparency were noted in the Central Asian projects. While there were consultations held with the affected peoples, key issues were not addressed. ADB has notably excluded civil society organizations, peoples’ organizations and communities in its development processes, exemplified in the lack of grievance mechanisms for the public. While the local CSOs and communities have raised issues regarding environmental assessments and monitoring of projects, they were suppressed or ignored.

Today, we gathered in Chuberi to support and show solidarity to locals who are protesting against the Nenskra HPP. Unfortunately, we are stuck in the past and, instead of shifting to modern technologies, the country pushes for what the modern world has rejected long ago. We say ‘No’ to big dams, as in the long run it is much more profitable for locals to keep the nature than destruct 400 hectares of forest for one single project. That is why we are saying ‘No’ to HPPs in Svaneti and in Georgia – they destruct our cultural heritage and nature [4].Dato Gulbani, a protester in Chuberi

The lack of grievance mechanisms for the affected communities, has also led to the continuing human rights violations being committed by the ADB, their corporate partners and the government.

The Amu-Bakhara Irrigation System led to the militarization of communities, due to the deployment of local armed forces. The Uzbekistan government has also been suppressing voices of dissent against the ADB project, especially regarding the state-sponsored forced labor of cotton-picking. Likewise, the Shah Deniz Project lent support to the Aliyev regime of Azerbaijan that has been targeting and detaining human rights defenders. 

The ADB has been financing the majority of these projects, allowing for these oppressive regimes to continue.

The ADB designated USD 314 million out of the USD 1 billion for the Nenskra Hydropower Plant, USD 475 million out of the USD 975 million for the Shah Deniz Gas Field Project and USD 220 million out of the USD 320 million for the Amu-Bukhara Irrigation System.  

In Central Asia alone, several human rights violations were noted such as forced displacement, eviction and demolition, insufficient compensation and lack of free, prior and informed consent (FPIC). In the case of Azerbaijan, homes and ancestral lands are being transformed to project sites, without the FPIC of the indigenous Svans. 

While infrastructure projects promise the employment of a large number of locals, labor opportunities remain scarce for these communities. Loss of livelihood and insufficient compensation serve to worsen the conditions of the local communities. In Uzbekistan, the ADB project has ignored the state-sponsored forced labor that has also led to corruption and unfair compensation.

In Uzbekistan, the ADB project has ignored the state-sponsored forced labor that has also led to corruption and unfair compensation.

The loss of livelihood being faced by the people is deeply rooted in the environmental impacts brought about by ADB projects. The farmers and fisherfolk that depend their income on natural resources and the rich biodiversity of their communities will be the most affected. Negative environmental impacts include:

• deforestation
• loss of biodiversity
• pollution
• unsanitary sewage systems and
• irrigation problems

These communities have also noted the lack of environmental assessments being conducted. The plans for the Nenskra Hydropower Project are situated in a forested and conservation site. Ninety-five percent (95%) of the proposed project site is forested and continuing the project will destroy the habitat of various species and the sedimentation of Svaneti. For the Shah Deniz Gas Project, soil pollution affects the communities’ capacity to produce their own food, leading to food insecurity.  

The various marine species present in the Nenskra River are endangered, due to the insufficient water flow. The Nenskra Hydropower Project also affects the airing and conditioning of the climate of the Chuberi and Nakra communities. Reduced water flow, coupled with climate change, can cause serious irrigation problems in the case of the Amu-Bakhara Irrigation System. These impacts on the environment worsen the living conditions of the affected communities and have far-reaching effects on the environment.