24/08/2010 (Biofuels Digest) - In Nigeria, the Initiative for Public Policy Analysis has released “Palm Oil and Economic Development in Nigeria and Ghana; Recommendations for the World Bank’s 2010 Palm Oil Strategy,” in which  highlights the importance for the World Bank to stay focused on its original mission of poverty reduction through economic development.

It argues that imposing burdensome environmental and social guidelines on investment in the production and supply chain of palm oil will unduly shift the core focus on the mission of the World Bank and IFC, and consequently undermine economic growth of developing countries.

Nigeria is the third largest producer of palm oil following Indonesia and Malaysia. Palm oil accounts for 34 percent of the world’s annual production of vegetable oil1 and 63 percent of the global exports of vegetable oils. It is produced in tropical climates and in 42 countries across the world.

Palm fruit from which palm oil is extracted is of immense value. 90 percent of global production of palm oil occurs in South-East Asia in Indonesia, Malaysia and Thailand.2 Several African nations are currently producing palm oil on a commercial scale. Uganda is currently developing oil palm plantations as tool to eradicate poverty.

According to IFFA, “the country provides a clear example of how palm oil, as a result of its high yield and low production costs, is a highly effective means of alleviating poverty and promoting economic development, the primary reason for the existence of the World Bank and International Finance Corporation.”  The report adds, “It is important to realize that enhancing economic growth will necessarily allow nations to embrace environmentally sustainable policies. However imposing environmental guidelines will not only hinder growth, but in the long term, will push developing nations towards less environmentally sustainable growth.”