Should decisions of independent accountability mechanisms be binding?

Independent Accountability Mechanisms (IAMs) are essential entities tasked with delivering justice and redress with fairness to project-affected peoples, ensuring that their voices are heard, and their rights are upheld in the context of projects financed by International Financial Institutions (IFIs). However, a significant limitation of IAMs is their lack of binding decision-making power, which raises serious concerns regarding their effectiveness in addressing grievances and providing meaningful remedies. After processing a complaint, IAMs make recommendations based on their findings of non-compliance to the parent institution’s Board of Directors or to the head of the parent institution to make decisions on the outcome of the complaint. The absence of binding authority poses a fundamental problem, as it undermines the potential for IAMs to hold IFIs accountable for the harm caused by their projects.