Consequences of the fragmentation of global environmental governance: the case of safeguards in the financing of large dams

Abstract

This article uses a broad framework to analyse the fragmentation of global governance architectures, and explores the consequences of such fragmentation with specific regard to the stringency of safeguards standards in the financing of large infrastructure projects, using the example of large dams. Drawing on original research, the author shows differences in safeguards stringency at the level of institutional policies, then at the level of projects financed by Public Financing Institutions (PFIs). Safeguards stringency differs substantially between different PFIs. There is fragmentation between multilateral and bilateral PFIs; and fragmentation among bilateral PFIs. The reasons are differences in coordination mechanisms among different PFIs, and diverging interest group pressure on PFIs. The article explores the key consequences of this fact for fragmentation of global governance. Key consequences are likely for ‘ambition’ (the ability of leaders to go further on the ‘standards’ they wish to set); and ‘equity’ (the ability to offer tailored solutions for specific regions or countries).