Governance of extractive industries in crisis and transition contexts
Mineral, oil and gas resources bring significant opportunities for countries to achieve development. Revenues from resource exploitation provide financing for achieving the Sustainable Development Goals (SDGs), and extractive industry investments can catalyze economic development and diversification, skills development and technology transfer.
However, with extraction also comes risks. These include: volatile economic growth; violent conflicts; corruption; environmental degradation and linked social harms; human rights violations; and gender-based violence. In a conflict/fragile environment, if not managed properly, extractive industries may increase the risk of conflict or deepen existing conflict.
UNDP has a mandate to research how extractive industries affect conflict in a context of crisis and transition, and how policies enabling good governance of the industry can strengthen resilience and sustainable development. We are currently focusing on: (i) dialogue in the extractive industries as a conflict prevention mechanism; (ii) revenue sharing mechanisms and its effect on conflict.; (iii) how the extractive industries can work towards achieving the SDGs; and (iv) the link between extractive industries and human rights.
OGC, along with colleagues in UNDP New York, has been working on increasing knowledge and dialogue through strengthening of the GOXI platform. We now encourage you to join the Environmental and Social Conflict Prevention in Extractive Sector Community of Practice and contribute to the discussions by following these easy steps:
1. If you are not already a member of GOXI, go to the website http://goxi.org and sign up to become a member.
2. Once you are a GOXI member, you can join the Group by going to http://goxi.org/group/egp and clicking on the "Join Environmental and Social Conflict Prevention in Extractive Sector" button at the top right corner.
Activities in 2017
How the extractive industries can work towards achieving the SDGs
With support from its Oslo Governance Centre, UNDP, International Finance Corporation (IFC) and IPIECA launched a new joint report, ‘Mapping the oil and gas industry to the Sustainable Development Goals: An Atlas,’ at the SDG Business Forum organized in conjunction with the UN High-Level Political Forum in July.
The report illustrates how the oil and gas industry links to and can contribute to address each of the 17 Sustainable Development Goals (SDGs) - by integrating into core business operations and by identifying opportunities for oil and gas companies to collaborate with other stakeholders, and leverage experiences and resources to implement each goal.
The Atlas illustrates how the oil and gas industry can most effectively support and contribute to the achievement of the SDGs for sustainable development through the roles and responsibilities of key stakeholders, and by providing examples of good practices and existing knowledge and resources available in the industry on sustainable development. Each chapter also includes case studies of innovative and sustained efforts by companies, often working collaboratively.
UNDP, in partnership with the IFC and IPIECA (global industry association for social and environmental issues in the oil and gas industry), have worked together over the past year to prepare the report. The preparation of the report has included wide consultations and inputs from the oil and gas industry (IPIECA member companies and other industry associations), as well as from civil society, academia, and international organizations.
Past events on governance of extractive industries
Soft Launch - Report: Natural Resources Revenue Sharing
An event was held at the Oslo Governance Centre on 15 March, 2016, to mark the soft launch of the UNDP /Natural Resource Governance Institute (NRGI) report on Natural Resource Revenue Sharing. The report will guide policymakers in establishing natural resource revenue sharing regimes or reforming existing ones.
Andrew Bauer, Senior Economic Analyst at NRGI, and Sofi Halling, Policy Analyst at the Oslo Governance Centre, presented some of the findings from the upcoming report. Among other things, the report provides 10 recommendations for designing and implementing efficient, fair and stable resource revenue sharing systems. Poorly designed revenue sharing systems can exacerbate regional inequalities and lead to violent conflicts.
The report can be found HERE. Its official launch was in September, 2016.
Lunch-seminar: Does global activism affect public debate around conflict minerals? The case of Congo
In June 2016, UNDP, together with NUPI, held a lunch-seminar on how global activism affected public debate around conflict minerals in DRC. More information about the seminar can be found HERE.
Workshop: Extractive Industries and Conflict Prevention
OGC along with UNDP’s Conflict Prevention Team and the Sustainable Development cluster hosted a full day workshop on Extractive Industries and Conflict Prevention on 17 November, 2015 in Oslo with the aim of deepening a shared understanding, exploring synergies and identifying areas for action on how to enhance the role of the extractive industries in promoting peaceful and inclusive societies.
The event attended by representatives from key UN agencies engaged in this work, IFIs and other multilateral organisations, governments, industry bodies, company representatives, think tanks and research organisations, and NGOs explored how extractives could be either a blessing or a curse, boosting development or causing conflict, depending on how such industries are managed. The day saw several country examples and initiatives that deepened the knowledge and understanding of participants on this issue including from Norway (Oil for Development Programme) and the Latin American context and country case of Peru. The event was followed online by participants from 18 countries and reaction captured on social media. Following this event, there was also a full day internal UNDP reflection attended by UNDP representatives from HQ, Regional Hubs and Country Offices on shaping and refining UNDP’s offer in this area. The full event recording for 17 November is available on OGC's YouTube channel here.
Some key resources from the workshop:
Environmental grievances along the Extractive Industries Value Chain (Dag Seierstad, Programme Management Officer, Environmental Cooperation for Peacebuilding, Extractive resources and Environmental Change, United Nations Environment Programme).
Country perspective (Rebecca Arias, Director, Panama Regional Hub, UNDP Latin-America and the Caribbean).
Institutionalizing dialogue (Luis Francisco Thais, Gerente Proyecto Prevencion de Conflictos con el Uso de Recursos Naturales, UNDP Peru).
Revenue and benefit sharing arrangements as a conflict prevention tool (Siri Rustad, Senior Researcher, Peace Research Institute Oslo (PRIO)).
Transparent and effective management of revenues (Pablo Valverde, Country Manager for the Middle East and North Africa, Extractive Industries Transparency Initiative (EITI)).
The role of women in preventing extractive industry conflicts (Caroline Ngonze, Programme Specialist, ACP-EU Development Minerals Programme, UNDP).
Global Compact’s work with the Business for Peace (Tiina Mylly, Manager Business for Peace, UN Global Compact).
How Companies are affected by the cost of conflict (Daniel Franks Programme Manager, ACP-EU Development Minerals Programme, UNDP).
Oil for Development (Ingunn Kroksnes, Senior Advisor, Oil for Development Section, Norad).