The Toachi River in northeast Ecuador holds immense significance for the residents of Santo Domingo de los Tsáchilas. It serves as a source of healing medicine and cleansing rituals for the Indigenous Tsáchila people, who have relied on its waters for centuries. However, the river’s importance has been threatened by the presence of a pig farm operated by Proanaca, a food company that established a farm of 2,000 pigs in the area in the 1990s.
Over time, the expansion of Proanaca’s operations led to increased pollution in the river, causing skin rashes, gastrointestinal illnesses, and an overall decline in water quality. The health effects were particularly severe in children, who began developing various illnesses. As a result, some residents started to migrate away from the area, while others hesitated to speak out against the powerful company.
Efforts to address the pollution and environmental damage caused by Proanaca’s operations have included filing complaints with local and national governments, as well as holding community gatherings to protest the company’s activities. The International Finance Corporation (IFC), a World Bank Group organization that invested in Pronaca in 2004, has been under scrutiny for its role in financing the company’s expansion.
Despite the concerns raised by affected communities, IFC continued to invest in Pronaca, totaling $170 million in loans, with the most recent investment made during the COVID-19 pandemic. The affected communities have called for greater accountability from IFC and Pronaca, demanding that the company acknowledge the harm caused by its operations and take steps to mitigate pollution.
In response to the complaints, IFC has stated that Pronaca’s environmental performance has improved over time, with the company implementing measures to address non-compliances with IFC guidelines. However, residents and activists continue to push for more transparency and accountability from both Pronaca and IFC.
The case of Pronaca in Santo Domingo de los Tsáchilas highlights the complex relationship between development banks, industrial agriculture, and environmental sustainability. While IFC has made efforts to align its investments with climate goals, questions remain about the impact of funding industrial animal agriculture on local communities and the environment.
Moving forward, there is a growing call for development banks to prioritize investments in sustainable agricultural practices, such as agroecology, that promote food security without compromising the health of ecosystems and communities. By shifting away from funding industrial animal agriculture and supporting more environmentally friendly farming methods, development banks can play a crucial role in addressing the challenges of climate change and promoting sustainable development.
