From a business perspective, local disputes can lead to more than US$20 million per week in losses for large-scale mines. To say nothing of the broader costs – in terms of lives lost and development stymied – when local discontent develops into violent conflict.
In response, a growing number of mining companies and governments have rolled out “Community Development Agreements” (CDAs), an umbrella term covering formal arrangements for local development between a company and designated communities. CDAs can run the gamut of the community-company relationship, including among other areas, socio-environmental impacts, benefit sharing, employment, monitoring and grievance redress.
CDAs have spread quickly in national law and policy. with nine countries currently in the process. The CDA model, it seems, is an emergent “best practice” and initiatives ranging from the Ruggie Principles to the International Council on Mining and Metals have reiterated their value.
If you live in a country where electricity never or rarely goes out, you are lucky. In my country, Nepal, we are pleased when we get uninterrupted electricity for even eight hours a day.
Like Nepal, many countries around the world struggle to deliver basic services to their citizens. But things are slowly improving.
1. Participatory budgeting
In the Democratic Republic of Congo, citizens of South Kivu Province are using “mSurvey” to obtain information about budget meetings. Using just their mobile phones, they can actively monitor, discover what was decided at meetings, and evaluate those decisions via online voting. by actively reminding local authorities of their commitments while ensuring that citizens are getting services they deserve.
At times, I ask my friends in Nepal, why they would not launch a business, especially when they have funds. A common obstacle for everyone is that they say you have to bribe government officials to even open a business.
Turns out, this isn’t unique to Nepal. According to Drivers of Corruption, a report recently published by the World Bank,
. These charts are based on surveys of more than 13,000 firms in 135 countries, by World Bank Enterprise Surveys.
Check out these charts and tell us if you are surprised.
Change is what development is all about. The hard part, as the well-chosen title of a new World Bank book makes clear, is persuading the right kind of change to put down roots and flourish.
Institutions Taking Root is a collection of success stories about building state capacity in challenging contexts. The common theme of these stories is not success in itself. They move us firmly on from the old ‘cometh the hour, cometh the leader’ cliché. A good harvest takes more than one seed; years of preparation go into the fertile ground that yields it.
The book looks at the committed group of leaders in Sierra Leone’s Ministry of Finance and Economic Development who continued to perform key functions during civil conflict. It considers the pool of leaders who have filled key positions inside and outside The Gambia’s Ministry of Basic and Secondary Education, and yet have held onto a common and consistent vision of policy and implementation.
I joined Facebook in 2007. For years, I would boast that I got all my news from Facebook and the Daily Show, an American satirical television program, which delivers fake news reports. I should be embarrassed to admit this, but perhaps it was inevitable. I certainly didn't feel connected to news sources, or government press services, so Facebook and fake news somehow felt more authentic and trustworthy than the traditional means of accessing information.
The outbreak of disease is often a latent but hard-hitting global concern, as currently exemplified by the flurry of anxiety swirling around Ebola. Many efforts have sprung up to fight spread of the disease, including the World Bank which has recently committed $400 million to said cause. While the growing human cost of the disease is distressing enough, if Ebola is not contained, the World Bank has estimated an additional economic cost of $32.6 billion to the West Africa region.
To find out, we recently spoke with Clark Freifeld, co-founder of HealthMap.org, a web-based tool that has been in the news for detecting Ebola 9 days before the World Health Organization officially announced it. Started in 2006 at Boston Children's Hospital, HealthMap uses public health, media, and open data sources to provide real-time information and alerts about disease outbreak based on a number of filters, including location.
As newly resource-rich countries grapple with how to manage their resources well, questions arise on how governments can channel natural resource revenues into smart investments, as well as lessons learned from past experiences. At a Flagship event preceding the Annual Meetings, panelists came together to discuss “Making Extractives Industries’ Wealth Work for the Poor.”
If managed well, revenue from resources such as oil and gas in Tanzania and Mozambique, iron ore in Guinea, copper in Mongolia, gas and gold in Latin America, oil, gas, bauxite and gold in Central Asia, can contribute to sustainable development. When poorly handled they can present long-term challenges for governments, communities and the environment.
The panelists included Marinke Van Riet, International Director, Publish What You Pay; Ombeni Sefue, Chief Secretary of Government, Tanzania; Samuel Walsh, Chief Executive Officer, Rio Tinto; and Tan Sri Nor Mohamed Yakcop, Deputy Chairman, Nasional Berhad, Malaysia. The session was moderated by renowned energy expert Daniel Yergin, Vice-Chairman, IHS, and bestselling author of The Quest: Energy, Security, and the Remaking of the Modern World.
Back in 2004, Extractive Industries Review noted that “the overall framework of governance within which Extractives Industries (EI) development takes place will be a major determinant of its contribution to sustainable poverty reduction.” The expert panel called for World Bank Group to do more on governance and transparency of the sector.
Source: Getty Images/Sam Edwards.
In Africa, estimates indicate that an annual investment of $93 billion is required to address the continent’s basic infrastructure needs – more than double the current level of investment.
The lack of productive investment of resource revenues, with spending of these revenues often heavily tilted towards consumption, is a critical component of the so-called resource curse, the observation that countries rich in natural resources frequently have slow long-term growth. Following oil or mineral discoveries, as the expectation of increased wealth spreads, pressures to spend typically become hard for politicians to resist, public sector salaries go through the roof, wasteful spending increases, corruption may flourish, hidden foreign bank accounts may be established, and the number of unproductive “white elephant” projects grows.
How can resource-rich countries ensure that a large share of oil, gas, and mining revenues are used for productive investment rather than excessive or wasteful consumption?
In response to such situations, development specialists typically call for sector-wide reforms. And the design of such reforms draws on sector policy analysis and on the assessment of service delivery arrangements and capacity. Increasingly, since the 2004 World Development Report, sector reforms also seek to make teachers, health professionals and other service providers accountable to citizens and communities.