The Role of NGOs and Civil Society

Beyond Holding Companies and Governments Accountable

Rees WarnePolicy Advisor for Extractive Industries

Catholic Relief Services

February 29, 2008

Civil Society as an Ally

• NGOs like CRS have to care about mining because mining affects the people we work with at many levels

• Involvement of NGOs/civil society can support common interests and improve outcomes for everyone

• Sustainable development requires governments, companies and civil society to work together

Publish What You Pay

The Publish What You Pay campaign (a coalition of more than 300 NGOs worldwide) aims to help citizens of resource-rich countries hold their governments accountable for the management of revenues from the oil, gas and mining industries.

When properly managed these revenues should serve as a basis for poverty reduction, economic growth and development rather than exacerbating corruption, conflict and social divisiveness.

• Australia• Azerbaijan• Cameroon• Canada• Chad• Congo Brazzaville• Côte d'Ivoire• Democratic

Republic of Congo• France• Gabon• Georgia• Germany• Ghana• Guinea• Indonesia

• Kazakhstan• The Kyrgyz Republic• Liberia• Mali• Mauritania• Mongolia• The Netherlands• Niger• Nigeria• Norway• Peru• Sierra Leone• Timor-Leste• United States • United Kingdom

Catholic Relief Services (CRS)

Founded in 1943 – By the Catholic Bishops of

the United States – To serve World War II

survivors in Europe

CRS Now – Works in more than 100 countries nad has

offices in 50 countries– Reaches more than 80 million people– Works through local partners– Is part of Caritas Internationalis – Serves people based solely on need,

regardless of race, religion or ethnicity

CRS cares about mining because

– Mining affects the people that we work with

– Exploitation of national natural wealth has not had as many benefits as it could

– Our constituents in many countries where we work have asked us to

Why CRS Cares about Mining

The Resource Curse

Resource-rich countries tend to have

– High (and growing) levels of poverty

– Extreme income inequalities

– Greater risk of conflict (33% vs. 6%)

– Low levels of citizen participation

– High levels of corruption

Key Issues for Civil Society

People tend to want

– Health

– Secure livelihood

– Balance between costs and benefits

– Positive relationships with others

– Respect and a say in their own lives

Local Impacts of Mining

Health• Contamination of water, air and soil

• HIV/AIDS

– Environmental contamination

– Displacement/resettlement

– Loss of livelihoods

– Mine closing

– Responsibility for long-term impacts

Balance of Costs and Benefits

Amount and Use of Mining Revenues

– Basic public services– Government accountability– Transparency– Corruption– Safety of those who advocate

for improvements– How decisions are made on the

local use of revenues– Conflict over access to mineral wealth

Local Relationship with Mining Companies

– Human rights– Labor standards

• Wages• Working conditions• Worker Safety

– Corporate Social Responsibility Funds

Self-Determination

Important not to underestimate:

– People’s participation in decisions that affect them

– Social license for mining companies

– Free prior informed consent

Social, Political, and Financial Risks

Can be Reduced

By effectively engaging Civil Society

Civil Society Participation

Participation and communication must– Be Meaningful

– Include the representatives of a variety of key stakeholders

– Be an on-going process

Working with Civil Society– Minimizing interactions with stakeholders does not minimize

problems with stakeholders– Information meetings are not the same as “participation”– Participation is an on-going process – not just for the EIA– Problem solving should take place before conflicts erupt – The effectiveness of CSR can not be measured by the amount

of money spent– Addressing people’s basic needs can be more important than

building flashy projects– Working with local communities takes time, but not working

with communities can lead to costly delays– Manipulation creates a risky environment– Civil society can support government and corporate goals

Roles of Government, Companies and Civil Society

Government Companies Civil Society EITI Laws Regulating the Mining Industry

Monitoring and Enforcement of Regulations

Environmental Impact Assessments

Contracts

Use of Mining Revenues to Benefit ALL Citizens

Corporate Social Responsibility

Crucial Points of Collaboration

When civil society holds government and the private sector to account - it can lower risks and benefit everyone