Finally, environmental and social safeguard risks are also rated as high due to the gap
between national legislation and WBG safeguards requirements, as well as labor practices in the
cotton sector. Although child labor has been largely eliminated, serious concerns remain about
risks of forced adult labor during the annual cotton harvest. In partnership with key stakeholders,
the WBG will continue to follow a holistic approach, which includes support for agricultural
diversification, cotton subsector modernization and mechanization, and implementation of the
Third-Party Monitoring and Feedback Mechanism. If any legal covenants were violated,
suspension of disbursements or cancelation of loans could also be triggered.
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