The multilateral development banks (MDBs)¹ spend more than $20 billion annually to promote economic development in less developed nations, and leverage billions more. The MDBs are the world's largest institutions financing economic development.

The project selection processes of these banks, however, often promote nonsustainable development projects. All too often, the MDBs' predisposition to promote the outlay of capital takes precedence over the need for in-depth assessment of economic and environmental impact. It is essential for these influential institutions to realize that economic development is dependent on environmental protection. For long-term sustainable economic development to occur, basic environmental resources must be protected. Development gains that lack environmental safeguards all too often cannot be sustained, and result in systematic economic collapse.