
Extractive Industries
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- Cover
- Extractive Industries: The Management of Resources as a Driver of Sustainable Development
- Copyright
- Dedication
- Foreword
- Preface
- Acknowledgements
- Contents
- List of Figures
- List of Tables
- List of Abbreviations
- Notes on Contributors
- Part I: Overview
- 1: Extractives for Development: Introduction and Ten Main Messages
- 1.1 Introduction
- 1.1.1 This Book
- 1.2 The Main Messages of This Book
- 1.2.1 Message 1: Extractive Industries Are Important in Developing Economies and Will Remain Important
- 1.2.2 Message 2: Developing Economies Have Great Potential to Develop their Extractive Resources Further
- 1.2.3 Message 3: Strategies Should Be Guided by Realism: Neither Euphoria Nor Despair Is Helpful
- 1.2.4 Message 4: Diversifying Economies Is Critical, But Hard to Achieve
- 1.2.5 Message 5: Better Institutions Are Vital to Success But Technocratic Institution-building Has its Limitations
- 1.2.6 Message 6: Effective and Inclusive Government Working with Enlightened Companies Is the Ideal Combination. Ineffective and Divisive Government Combined with Rogue Companies Is the Worst
- 1.2.7 Message 7: Delivering Effective and Inclusive Governance Is Vital to Improving Outcomes in the Extractives Sector
- 1.2.8 Message 8: Improving the Practices of Companies Can Now Draw upon a Great Deal of Accumulated Experience
- 1.2.9 Message 9: There Are Now Many More Ways in Which Interventions by External Stakeholders, Especially Aid Donors, Can Improve Outcomes
- 1.2.10 Message 10: Climate Action Will Create New Winners and New Losers among the Extractives Sectors
- 1.3 Conclusions
- References
- Part II: Minerals and Oil and Gas in the Global Context
- 2: Dependence on Extractive Industries in Lower-income Countries: The Statistical Tendencies
- 2.1 Introduction
- 2.2 Current Levels of Dependence on Extractives
- 2.2.1 Minerals
- 2.2.2 Oil and Gas
- 2.3 Changes in Extractives Dependence since 1996
- 2.4 The Impact of the End of the Commodity Price Cycle
- 2.5 Implications of High Extractives Dependence
- 2.5.1 Short-term Consequences
- 2.5.2 The Longer-term Perspective
- 2.6 Conclusions
- References
- 3: Mining's Contribution to Low- and Middle-income Economies
- 3.1 Introduction
- 3.2 Methodology
- 3.2.1 Mining Contribution Index WIDER
- 3.2.2 Indicators
- 3.2.2.1 EXPORTS
- 3.2.2.2 VALUE OF MINE PRODUCTION
- 3.2.2.3 MINERAL RENTS
- 3.2.2.4 EXPLORATION
- 3.2.3 Calculation
- 3.3 Current Levels of Mining Contribution to National Economies
- 3.3.1 Country Rankings
- 3.3.2 Value of Mine Production
- 3.3.2.1 CHANGE OF MINING CONTRIBUTION OVER TIME, 1996-2014
- 3.3.3 Export Contribution
- 3.3.4 Exploration
- 3.3.5 Mineral Rents
- 3.3.6 Other Factors
- 3.3.6.1 GOVERNMENT REVENUES FROM MINING
- 3.3.6.2 EMPLOYMENT
- 3.4 Changes in MCI-W since 1996
- 3.5 The Impact of the End of the Super-cycle
- 3.6 Future Implications of Extractives Dependency
- 3.7 Conclusions
- 3.7.1 Contribution of Mining Industries in Low- and Middle-income Countries
- 3.7.2 Change in Contribution over the Past Twenty Years
- 3.7.3 Impact of the End of the Super-cycle
- References
- 4: The Role of Oil and Gas in the Economic Development of the Global Economy
- 4.1 Introduction
- 4.1.1 Recent History
- 4.1.1.1 AS A FACTOR INPUT
- 4.1.1.2 IN GLOBAL TRADE
- 4.1.1.3 PRICES AND THE MACRO ECONOMY
- 4.1.1.4 GEOPOLITICS AND THEIR ECONOMIC IMPACT
- 4.2 Current Conventional Views of the Future for Oil and Gas
- 4.3 Drivers of Future Trends: What Economic and Technical Factors Might Derail Conventional Views of the Future?
- 4.3.1 Technology
- 4.3.2 Incomes
- 4.3.3 Energy Pricing
- 4.3.4 Climate Change Policies
- 4.4 Drivers of Future Trends: How Geopolitics May Derail the Conventional Views of the Future
- 4.5 Conclusions
- References
- Part III: The Academic Literature and the Resources Curse
- 5: The Curse of the One-size-fits-all Fix: Re-evaluating What We Know about Extractives and Economic Development
- 5.1 Introduction
- 5.2 An Evolution in Thinking about the Use of Extractive Resources for Economic Growth
- 5.3 The Extractives-led Growth Agenda Emerges
- 5.3.1 Has the Remedy Worked?
- 5.4 What Are the Extractives-led Development Narrative's Flaws?
- 5.4.1 There Is a Tendency to Prescribe a One-size-fits-all Solution
- 5.4.2 Political and Psychological Impacts Can Overpower Attempts at Good Governance
- 5.4.3 Development Is Too Rapid
- 5.5 Considerations for Revising the Advice to Producers
- 5.5.1 Diversification as Key
- 5.5.2 Understanding Linkages-and their Limitations
- 5.5.3 The Pace of Development Matters
- 5.5.4 Alternative Measures of Performance and Models of Development Overlooked
- 5.6 Conclusions
- References
- 6: Political Economy and Governance
- 6.1 Introduction
- 6.2 The Political Economy of Extractive Resources and Institutions
- 6.2.1 Explaining Negative Outcomes
- 6.2.2 Explaining Variance in Outcomes
- 6.2.2.1 STRUCTURAL EXPLANATIONS
- 6.2.2.2 STRUCTURAL CHARACTERISTICS
- 6.2.3 Guiding Policy Interventions
- 6.3 What Are Institutions?
- 6.3.1 Taking Stock of Institutional Analyses
- 6.3.2 Gaps in Knowledge
- 6.3.2.1 HOW INSTITUTIONS CONNECT ACROSS THE LEVELS
- 6.3.2.2 INSTITUTIONAL CHANGE AND HOW INSTITUTIONS EVOLVE
- 6.3.2.3 HOW TO BRING ABOUT POSITIVE INSTITUTIONAL CHANGE
- 6.3.2.4 BUREAUCRACY AND STATE CAPACITY
- 6.3.3 Application to the Extractive Resources Sector
- 6.3.4 Gaps in Knowledge Applied to the Extractive Resources Sector
- 6.3.4.1 HOW DO INSTITUTIONS CONNECT ACROSS THE LEVELS?
- 6.3.4.2 INSTITUTIONAL CHANGE: HOW DO INSTITUTIONS EVOLVE?
- 6.3.4.3 BRINGING ABOUT POSITIVE INSTITUTIONAL CHANGE: WHERE ARE THE LEVERS?
- 6.3.4.4 WHAT ROLE DOES STATE CAPACITY PLAY?
- 6.4 Discussion
- 6.5 Summary
- References
- 7: New Industrial Policy and the Extractive Industries
- 7.1 Introduction
- 7.2 The Case for Industrial Policy
- 7.2.1 The Risks of 'State Failure'
- 7.2.2 Industrial Policy as a Discovery and Learning Process
- 7.2.3 Setting and Pursuing Socio-economic Objectives
- 7.2.4 Improving Productivity
- 7.2.5 Building Comparative Institutional Advantages
- 7.2.6 The Political Economy of Transaction Costs and Institutional Change
- 7.3 Industrial Policy and the Extractives-led Development Agenda
- 7.3.1 The Unfulfilled Promise of State-led Industrialization
- 7.3.2 Sector Liberalization in the Ascendant
- 7.3.3 The Promise of the Extractives-led Development Agenda
- 7.4 What Next on New Industrial Policy and Extractives-led Development?
- 7.4.1 A Positive Role for the Extractive Industries
- 7.4.2 Much Theory, Less Practice
- 7.4.3 Local Content as Industrial Policy
- 7.4.4 Secondary Impacts of International Environmental and Social Policies
- 7.5 Conclusions
- References
- Part IV: Policy Challenges in the Macro-management of Extractives
- 8: The Macroeconomic Management of Natural Resources
- 8.1 Introduction
- 8.2 The Nature of the Basic Problem
- 8.3 Macroeconomic Management and Dutch Disease
- 8.4 Fiscal Policy as the Main Instrument
- 8.5 The Hierarchy of Fiscal Policy Choices
- 8.6 Early-stage Borrowing
- 8.7 To Spend or to Save?
- 8.8 To Invest or to Consume?
- 8.9 Where Should Any Financial Savings Be Placed?
- 8.10 Chapters 9, 10, and 11
- References
- 9: Extractive Revenues and Government Spending: Short- versus Long-term Considerations
- 9.1 Introduction
- 9.2 Inter-temporal Efficiency and the Present Value Budget Constraint
- 9.3 Benchmark Management of Windfalls: The Permanent Income Hypothesis
- 9.4 The Case for Investing Resource Windfalls in the Domestic Economy
- 9.4.1 Using the Resource Windfall for Domestic Investment and Foreign Assets
- 9.4.2 Capital Scarcity and the Optimal Choice between Saving and Consumption
- 9.5 Absorption Constraints and the Case for a Parking Fund
- 9.6 Volatility of Commodity Prices and the Case for a Stabilization Fund
- 9.7 Conclusions
- Appendix: Optimization Problem in the Presence of Capital Scarcity
- References
- 10: The Copper Sector, Fiscal Rules, and Stabilization Funds in Chile: Scope and Limits
- 10.1 Introduction
- 10.2 Brief Historical Background of a Mineral-exporting Economy and Cycles Related to the Copper Sector
- 10.2.1 The Copper Sector, Policy Shocks, and Macroeconomic Cycles
- 10.3 The Evolving Institutional Framework of the Mining Sector: The Cycle of Foreign Ownership, Nationalization, and de facto Privatization
- 10.4 A Macroeconomic Perspective: Orthodoxy, Fiscal Rule, and Stabilization Funds
- 10.4.1 Asset Management of SWFs
- 10.4.2 Macroeconomic Effects: Growth Volatility and Country Risk Reductions
- 10.5 Conclusions
- References
- 11: Oil Discovery and Macroeconomic Management: The Recent Ghanaian Experience
- 11.1 Introduction
- 11.2 Ghana before Oil
- 11.3 Discovery of Oil
- 11.4 Deterioration of Public Finances
- 11.5 Rising Levels of Public Debt
- 11.6 Declining Capital Expenditure
- 11.7 Declining Real GDP Growth
- 11.8 Corruption, Post-discovery
- 11.9 Ghana's Political System in the Context of Oil
- 11.10 What Could Ghana Have Done Differently?
- 11.10.1 Anchoring Fiscal Discipline
- 11.10.2 Fiscal Rules and Budget Institutions
- 11.10.3 Anchoring Monetary Discipline
- 11.10.4 Bank of Ghana Act and Central Bank Independence
- 11.10.5 Transparency
- 11.10.6 Strengthening the Law on the Management of Oil Revenues
- 11.10.7 Forecasting Government Oil Revenues
- 11.11 Conclusions
- References
- Part V: National Institutions of Extractives Management
- 12: The Regulation of Extractives: An Overview
- 12.1 The Basic Frameworks
- 12.2 The Regulatory Challenge in Low-income Countries
- 12.3 Outline of Part V
- References
- 13: Regulatory Structures and Challenges to Developmental Extractives: Some Practical Observations from Ghana
- 13.1 Introduction and Background
- 13.2 The Role of Regulatory Structures in Mineral Resource Development
- 13.3 Trajectory of Mining Regulations in Ghana
- 13.4 The Regulatory Structures of the 1980s and Beyond
- 13.4.1 Mining Legislation
- 13.4.2 Investment
- 13.5 Contribution and Benefits Stream
- 13.5.1 Capital Injection and Production of Minerals
- 13.5.1.1 DOMESTIC REVENUE GENERATION
- 13.5.1.2 FOREIGN EXCHANGE
- 13.5.1.3 EMPLOYMENT GENERATION
- 13.5.2 Local Content: The Evolution of Regulatory Approaches
- 13.5.2.1 THE STATE OF IMPLEMENTATION
- 13.6 Key Regulatory Challenges
- 13.6.1 Multiple Regulations and Inter-institutional Conflicts
- 13.6.2 Capacity of Regulators
- 13.6.3 Political Will and Interference
- 13.6.4 The Balancing Act of Dealing with Large-scale Multinational and Local Small-scale Mining Sectors
- 13.7 Conclusions
- References
- 14: The Taxation of Extractive Industries: Mining
- 14.1 Mineral Taxation: A General Overview
- 14.1.1 Introduction
- 14.1.2 Mineral Rents
- 14.1.3 Evolution of Mineral Taxation Schemes
- 14.1.4 Revenue Distribution
- 14.1.5 Special Aspects of the Mining Industry and the Tax Policy Response
- 14.1.6 Transparency
- 14.1.7 Revenue Stabilization Funds
- 14.1.8 Sovereign Wealth Funds
- 14.1.9 Double Taxation Treaties
- 14.2 Direct Taxes and Indirect Taxes
- 14.2.1 Direct Taxes
- 14.2.2 Indirect Taxes
- 14.3 Tax Incentives and Income Tax Adjustments
- 14.4 Transfer Pricing and Other Tax Minimization Schemes
- 14.5 Conclusions
- References
- 15: Doubling Down: National Oil Companies as Instruments of Risk and Reward
- 15.1 Introduction
- 15.2 SOEs: Context and Core Characteristics
- 15.3 Analysing Risk and Reward
- 15.3.1 Key Choices and Lenses of Analysis
- 15.3.2 Categorization of Risks
- 15.3.2.1 COMMERCIAL/FINANCIAL RISK
- 15.3.2.2 GOVERNANCE RISKS
- 15.3.3 Assessment of Potential Rewards
- 15.3.4 Putting the Pieces Together
- 15.4 Mitigating Risks and Making Rewards More Likely to Materialize
- 15.5 Conclusions
- References
- 16: Protecting the Environment during and after Resource Extraction
- 16.1 Introduction: Resource Extraction Has High Potential for Immediate and Long-term Environmental Damage
- 16.2 Countries with Weak Institutions and Poor Success Rates in Addressing their Other Environmental Challenges Face Significant Challenges in Regulating Extraction
- 16.3 Commonly Used Approaches to Work around Domestic Legal, Institutional, and Experiential Deficiencies
- 16.3.1 How a Combination of Approaches Was Put to Work in a Liberian Mining Contract
- 16.3.2 How Effective Are Voluntary Standards for Improving Environmental Performance?
- 16.3.3 The Limits of CSR
- 16.3.4 Falling Commodity Prices: Some Consequences for Environmental Regulation
- 16.4 A Bigger Tool Box: Alternatives to Improve Environmental Performance in Extraction
- 16.5 Conclusions
- References
- 17: Enhancing Sustainable Development from Oil, Gas, and Mining: From an 'All of Government' Approach to Partnerships for Development
- 17.1 Overview
- 17.2 Evidence Base to Facilitate 'All of Government' Coordination
- 17.2.1 Context/Issue
- 17.2.2 Objectives
- 17.2.3 Action in Support of the Objectives
- 17.2.3.1 SHARED UNDERSTANDING OF THE EVIDENCE BASE
- 17.2.3.2 CROSS-GOVERNMENT COORDINATION
- 17.2.4 Early Results
- 17.2.4.1 RESULTS
- 17.2.4.2 CHALLENGES
- 17.3 Building Trust through Multi-stakeholder Dialogue
- 17.3.1 Context/Issue
- 17.3.2 Objectives
- 17.3.3 Action in Support of the Objectives
- 17.3.3.1 CREATE A NEUTRAL SPACE TO VOICE DIFFERENT PERSPECTIVES
- 17.3.3.2 IDENTIFY CHALLENGES AND OPPORTUNITIES
- 17.3.3.3 DEVELOP A SHARED UNDERSTANDING OF, AND ACCOUNTABILITY FOR, RESPONSIBLE INVESTMENT
- 17.3.4 Early Results
- 17.3.4.1 RESULTS
- 17.3.4.2 CHALLENGES
- 17.4 Partnerships for Development
- 17.4.1 Context/Issue
- 17.4.2 Objectives
- 17.4.3 Action in Support of the Objectives
- 17.4.3.1 ENHANCE ECONOMIC AND SOCIAL OUTCOMES BY FILLING GOVERNANCE CAPACITY GAPS
- 17.4.3.2 STRENGTHEN ACCOUNTABILITY
- 17.4.3.3 UNCOVER LOCAL CONTEXTUAL ISSUES
- 17.4.4 Early Results
- 17.4.4.1 RESULTS
- 17.4.4.2 CHALLENGES
- 17.5 Conclusions
- References
- Part VI: International Regulatory Concerns and Structures
- 18: Towards Contribution Analysis
- 18.1 Introduction
- 18.2 Conceptual Foundation
- 18.2.1 Substance
- 18.2.1.1 MEANS ASSESSMENT
- 18.2.1.2 ENDS ASSESSMENT
- 18.2.2 Process
- 18.3 Generic Assessment Cycle
- 18.3.1 Story
- 18.3.2 Measurement
- 18.3.3 Synthesis and Judgement
- 18.3.4 Communication
- 18.3.5 Explicitly Bringing Values into 'Technical' Assessment and Decision-making
- 18.3.6 Need for an Interdisciplinary Team
- 18.4 The Tough Challenge of Attribution
- 18.5 Steps towards Contribution Analysis
- 18.5.1 The 1997-2002 Assessment and Approval of the Labrador-based Voisey's Bay Nickel Project Based on Assessment of Projected Contribution to Sustainability
- 18.5.2 A First Nation's Assessment of Mining's Contribution: Past, Present, and Future
- 18.5.3 Strengthening Mining's Contribution to Poverty Alleviation
- 18.6 Progress Made, Progress Needed
- References
- 19: The Role of Governance and International Norms in Managing Natural Resources
- 19.1 Introduction
- 19.2 What Is the Rationale for Improving Governance in Resource-rich Economies?
- 19.2.1 The Emergence of Governance Initiatives
- 19.3 What Are the Governance Challenges Posed by Resource Wealth?
- 19.4 What Is the Rationale for Codes and Standards?
- 19.4.1 The Policy Makers' Dilemmas
- 19.5 What Is at Stake?
- 19.6 Examples of Codes and Standards
- 19.6.1 The Benefits of Transparency
- 19.6.2 Extractive Industries Transparency Initiative
- 19.6.2.1 HAS EITI HAD A POSITIVE IMPACT?
- 19.6.2.2 HAS EITI IMPROVED THE AVAILABILITY OF INFORMATION ABOUT PUBLIC REVENUE FROM EXTRACTIVE RESOURCES?
- 19.6.2.3 HOW HAS GOOD GOVERNANCE EVOLVED IN EITI ADOPTING COUNTRIES?
- 19.6.2.4 REFLECTING ON THE FIRST DECADE OF EITI
- 19.6.3 The Regulation of Conflict Minerals
- 19.6.4 Best Practices and Economic Policy Guides for Policy Makers
- 19.6.4.1 AFRICA MINING VISION
- 19.6.4.2 NATURAL RESOURCE CHARTER
- 19.7 Critical Reflections
- 19.7.1 Downsides of Codes and Standards
- 19.7.2 Looking Ahead
- References
- 20: Oil and Gas Companies and the Management of Social and Environmental Impacts and Issues: The Evolution of the Industry's Approach
- 20.1 Introduction
- 20.2 The Initial Industry Response
- 20.3 Laggards Catching Up: The Impact of International Standards
- 20.4 Environmental and Social Performance in the Industry Today: The Realities and Problems of Practice
- 20.5 Moving beyond Corporate Social Responsibility and Common Misunderstandings
- 20.6 Conclusions
- References
- 21: The Role of Gender in the Extractive Industries
- 21.1 Overview
- 21.1.1 Scope
- 21.1.2 Content
- 21.2 The Many Facets of Gender and the Extractive Industries
- 21.2.1 Women and Gender: What Do We Mean?
- 21.2.2 Aspects of Gender in the Extractives Sector
- 21.2.3 Gendered Impacts
- 21.2.4 Gender-based Violence and Sex Work
- 21.2.5 Women's Resistance to Extractives Projects
- 21.2.6 Industry Efforts towards Gender Balance
- 21.3 Conclusions
- References
- 22: Climate Change and the Extractives Sector
- 22.1 Introduction
- 22.2 Looking to the Energy Future
- 22.2.1 Natural Gas, Carbon Sequestration, and Energy Efficiency
- 22.2.2 Stranded Assets
- 22.2.3 Implications for Extractives Companies
- 22.3 Impact of a 'Net Zero-carbon' Future for Minerals and Metals
- 22.3.1 Supply Concerns
- 22.3.2 Development Impacts and Concerns
- 22.4 Conclusions
- References
- Part VII: Leveraging the Direct Impacts of Extractives into Sustainable Development
- 23: FrameworkThe Channels for Indirect Impacts
- 23.1 Introduction
- 23.2 Channels of Impact
- 23.3 Industry Channel: Downstream and Upstream Multiplier Effects
- 23.4 Estimates of Impact Multipliers for Mining Activity
- 23.4.1 Measuring the Size of Secondary Impacts
- 23.4.2 Input-Output (I-O) Modelling
- 23.4.3 CGE Modelling
- 23.4.4 Econometric Modelling
- 23.5 Public Spending Channel
- 23.5.1 Direct Impacts on Human Development
- 23.5.2 Indirect Effects via the Public Spending Channel
- 23.5.2.1 INVESTING IN INFRASTRUCTURE
- 23.5.2.2 INVESTING IN STRUCTURAL TRANSFORMATION AND ECONOMIC DIVERSIFICATION
- 23.6 Conclusions
- References
- 24: Local Content, Supply Chains, and Shared Infrastructure
- 24.1 Introduction
- 24.2 Scope and Background
- 24.3 Local Procurement: The Corporate Perspective
- 24.3.1 Corporate Procurement
- 24.3.2 Supplier Development
- 24.3.3 Some Conclusions
- 24.4 Policies for Influencing Supply Chains
- 24.4.1 Trade-offs and Constraints
- 24.4.2 Government Policies
- 24.4.2.1 QUANTITATIVE TARGETING
- 24.4.2.2 NON-COERCIVE APPROACHES AND THE ENABLING ENVIRONMENT
- 24.5 Infrastructure
- 24.6 Conclusions
- References
- 25: Downstream Activities: The Possibilities and the Realities
- 25.1 Introduction
- 25.2 Explanations for the Lack of Downstream Integration in Extractive Industries
- 25.2.1 Declining Terms of Trade and Unequal Market Power
- 25.2.2 Tariff Escalation
- 25.2.3 Economies of Scale
- 25.2.4 Availability of Inputs
- 25.2.5 Size of Domestic Market
- 25.2.6 Closeness to Market
- 25.2.7 Business Environment
- 25.2.8 Conclusions
- 25.3 Economics and Geography of Downstream Processing: Some Empirical Data
- 25.3.1 Extent of Vertical Integration in Selected Mineral Industries
- 25.3.2 Processing Margins
- 25.3.3 Some Conclusions
- 25.4 Review of Policies
- 25.4.1 Policy Objectives and Means
- 25.4.2 Indonesia's Unprocessed Mineral Exports Ban
- 25.4.3 Export Taxes on Iron Ore in India
- 25.4.4 Processing of Copper in Zambia
- 25.4.5 Exports or Local Use of Natural Gas in Tanzania
- 25.5 Conclusions
- References
- 26: Choices for Spending Government Revenue: New African Oil, Gas, and Mining Economies
- 26.1 Introduction
- 26.2 Estimating Revenues from Extractives Projects in Africa
- 26.3 Comparison with Spending Gaps and Current Funding for Social Sectors
- 26.3.1 Opportunities in the Health Sector
- 26.3.2 Opportunities in the Education Sector
- 26.3.3 Opportunities in Social Protection
- 26.4 Policy Choices: What to Consider When Spending Natural Resources in Social Sectors
- 26.4.1 Importance of Addressing Demand-side Barriers in Conjunction with Supply
- 26.5 Conclusion
- References
- 27: Donor-supported Approaches to Improving Extractives Governance: Lessons from Nigeria
- 27.1 Introduction: The Rationale for Donor Engagement
- 27.2 The Political Economy of Reform: Thinking and Working Politically
- 27.3 Facility for Oil Sector Transparency and Reform (FOSTER)
- 27.3.1 Context
- 27.3.2 Programme Design
- 27.3.3 How FOSTER Worked
- 27.3.3.1 BEING DRIVEN BY THE PREVAILING POLITICAL ENVIRONMENT
- 27.3.3.2 EMPLOYING LOCALLY EMBEDDED 'DEVELOPMENT ENTREPRENEURS'
- 27.3.3.3 USING FLEXIBLE AND ADAPTIVE PROGRAMMING
- 27.3.3.4 EMBRACING RISK . . .BUT ALSO MANAGING IT
- 27.3.3.5 OPERATING 'UNDER THE RADAR'
- 27.3.3.6 TAKING AN 'ARM'S LENGTH' APPROACH TO AID
- 27.3.4 What Has Been Achieved?
- 27.3.4.1 RAISING THE STATE OF KNOWLEDGE AND CALIBRE OF PUBLIC DEBATE ON OIL AND GAS POLICY
- 27.3.4.2 ACHIEVING SIGNIFICANT AGREEMENT ABOUT WHAT THE LEGAL FRAMEWORK FOR THE SECTOR SHOULD BE
- 27.3.4.3 MAKING LARGE REVENUE SAVINGS FOR THE GOVERNMENT OF NIGERIA
- 27.3.4.4 INSTITUTIONALIZING TRANSPARENCY AND ACCOUNTABILITY
- 27.4 Challenges in Applying the Approach, and Lessons for Donors
- 27.4.1 Challenges in Applying the Approach
- 27.4.1.1 DISRUPTING THE STATUS QUO CAN CREATE CONFLICT
- 27.4.1.2 SPENDING TIME AND MONEY BUILDING RELATIONSHIPS VS SHOWING HOW SUCH AN APPROACH IS EFFECTIVE
- 27.4.1.3 WORKING ON SUPPLY AND DEMAND AT THE SAME TIME
- 27.4.1.4 ACTING POLITICALLY VS MAINTAINING DONOR POLITICAL RELATIONS
- 27.4.1.5 ADHERENCE TO DONOR PROGRAMMING INCENTIVES VS USING PEA AND FLEXIBLE PROGRAMMING
- 27.4.2 Lessons for Donors
- References
- Part VIII: Capturing Economic and Social Benefits at Community Level
- 28: The Role of Participation in Sustainable Community Development Programmes in the Extractive Industries
- 28.1 Introduction
- 28.1.1 Scope
- 28.1.2 Structure
- 28.2 The Conceptual Dimensions
- 28.2.1 Literature Review
- 28.2.2 Conclusion
- 28.3 The Practical Aspects
- 28.3.1 Industry Efforts to Improve Local Community Development Performance
- 28.3.2 Practical Participation
- 28.3.3 Participatory Planning in Action: Tanzanian Examples
- 28.3.3.1 CASE STUDY: PARTICIPATORY PLANNING IN NZEGA DISTRICT, TANZANIA
- 28.3.3.2 BUZWAGI GOLD MINE
- 28.3.4 Summary
- 28.4 Conclusions
- References
- 29: Approaches to Supporting Local and Community Development: The View from Zambia
- 29.1 Introduction
- 29.1.1 Historical Context of Social Responsibility in Zambian Mining
- 29.1.1.1 CORPORATE SOCIAL RESPONSIBILITY BEFORE PRIVATIZATION
- 29.1.1.2 THE ZCCM PRIVATIZATION AND ITS CONSEQUENCES FOR CSR
- 29.1.1.3 CSER SHORTCOMINGS FOLLOWING PRIVATIZATION
- 29.1.1.4 CHINA'S MINING FOOTPRINT IN ZAMBIA
- 29.1.1.5 THE AUDITOR GENERAL'S 2014 REPORT ON ENVIRONMENTAL DEGRADATION
- 29.1.2 The Zambian Policy Context
- 29.2 Mining Impacts and CSER
- 29.2.1 The Growing Prominence of CSER in Zambia
- 29.2.2 The Lingering Crisis of Expectations Following the Privatization of ZCCM
- 29.3 Case Studies in Zambia's Mining Communities
- 29.3.1 FQM's Kansanshi Mining
- 29.3.1.1 KANSANSHI MINING'S CSER INTERVENTIONS
- 29.3.1.2 PERSPECTIVES AND REACTIONS OF THE SOLWEZI COMMUNITY
- 29.3.2 Nonferrous Company Africa Mining
- 29.3.2.1 NFCA'S CSER INTERVENTIONS
- 29.3.2.2 PERSPECTIVES AND REACTIONS OF THE CHAMBISHI COMMUNITY
- 29.4 Advantages and Disadvantages of the Mining Companies' Approaches
- 29.4.1 Key Shortcomings in CSER Approaches
- 29.4.2 Tripartite Dialogue and Other Success Factors for CSER
- 29.5 Conclusions and Recommendations
- 29.5.1 The International Drive to Integrate CSER in Business Strategies
- 29.5.2 Towards a Community Self-help Approach
- References
- 30: Approaches to Supporting Local and Community Development: Brazil and the Vale SA Model of Corporate Interaction
- 30.1 Vale SA: An Overview
- 30.2 Vale's Social Investment Evolution
- 30.3 Public-Private Social Partnership
- 30.4 Southeast Pará (Geography, Economy, Vale's Presence)
- 30.5 The PPSP in Southeast Pará: The Canaã dos Carajás Case
- 30.5.1 A Few of the Main Results of the Cross-sector Partnerships by 2014/15
- 30.6 Challenges Faced and Critical Success Factors for the PPSP Approach
- References
- 31: Capturing Economic and Social Benefits at the Community Level: Opportunities and Obstacles for Civil Society
- 31.1 Introduction
- 31.2 Role of Civil Society in Communities Affected by the Extractive Industries
- 31.3 Origins of the Extractives Revenue Transparency Movement
- 31.4 The Politics of Extractive Industries Revenue Distribution
- 31.5 Ghana
- 31.6 Peru
- 31.7 Strengthening the Role of Civil Society in Capturing Local Benefits
- 31.7.1 Strengthening Technical Capacity
- 31.7.2 Providing Civic Education
- 31.7.3 Focusing on Appropriate Countries
- 31.7.4 Promoting Positive Examples
- 31.8 Conclusions
- References
- 32: How Do We Legislate for Improved Community Development?
- 32.1 Challenges of Non-renewable Resources-led Development
- 32.2 Respective Roles of Government and Investors in Community Development
- 32.3 Voluntary vs Mandatory Approaches
- 32.3.1 Legal Mandates: Acts of Law and State Mining Agreements
- 32.3.2 World Bank Model CDA Regulations and Later Improvements
- 32.4 Legislated Requirements
- 32.4.1 What Is a CDA?
- 32.4.2 Parties to a CDA
- 32.4.3 Participatory Processes: Meeting the Needs of Disparate Communities
- 32.4.4 Community Contract Negotiating Capacity
- 32.5 Mining Act and Mining Regulations Provisions
- 32.5.1 Which Operations Require CDAs?
- 32.5.2 Which Communities Qualify for a CDA?
- 32.5.3 Mandatory CDA Obligations under the Mining Act
- 32.5.4 Enforcement, Offences, and Penalties
- 32.5.5 Applicability to Pre-existing Mining Rights
- 32.5.6 Legal Effect of a CDA
- 32.5.7 Effect of Transfer of the Underlying Exploration/Mining Right
- 32.6 Conclusions
- References
- 33: Conclusions
- 33.1 Challenges
- 33.2 Articulating and Implementing a Vision
- 33.3 Final Words
- Index
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