S OCIAL MANAGEMENT OF MINING DEVELOPMENT : K EY ISSUES FROM THE P ERUVIAN EXPERIENCE Gerardo Castillo Reversing the resource curse – Accra, Ghana 26-30.

Presentación del tema: "S OCIAL MANAGEMENT OF MINING DEVELOPMENT : K EY ISSUES FROM THE P ERUVIAN EXPERIENCE Gerardo Castillo Reversing the resource curse – Accra, Ghana 26-30."— Transcripción de la presentación:

1 S OCIAL MANAGEMENT OF MINING DEVELOPMENT : K EY ISSUES FROM THE P ERUVIAN EXPERIENCE Gerardo Castillo Reversing the resource curse – Accra, Ghana 26-30 of August 2013

2 Contemporary Context: Mining in Peru  Mining investment boom since 1990s.  Significant expansion to non-traditional extractive areas.  Simultaneous increase in social conflicts. 2 Creando conocimiento, promoviendo mejores entornos sociales

3 Content  In this context, what are the main challenges for managing the social effects of mining development? 1.Environmental regulation. 2.Distribution of benefits. 3.Country strategy. 4.Transparency. 5.Management of social impacts. 3 Creando conocimiento, promoviendo mejores entornos sociales

4 Environmental regulation  1 st challenge: build an environmental authority that is able to ensure mining will not adversely affect the environment.  Strong public perceptions of negative impact given history and legacy of poor mining.  Capacity, independence and legitimacy of environmental authority. 4 Creando conocimiento, promoviendo mejores entornos sociales

5 Distribution of benefits  2 nd challenge: reach an efficient distribution of the benefits which is perceived as fair.  Institutional design: who distributes?, how is distribution made?, how much to be distributed?, for what purpose?  Balance between the benefit of local populations and central governments. 5 Creando conocimiento, promoviendo mejores entornos sociales

6 Country strategy  3 rd challenge: ensure that resources generated through mining are translated into social sustainable development.  Minimum consensus: what is the desired outcome?, in what timeframe?, with which resources?, who is responsible and who is involved?, what are the monitoring and evaluation mechanisms? 6 Creando conocimiento, promoviendo mejores entornos sociales

7 Transparency  4 th challenge: good governance and transparent management of resources: reduce corruption and improve accountability.  Transparency at national level: revenue and taxes of the EI sector: EITI, Publish What You Pay, RWI, etc.  Transparency at regional and local level: monitoring of investments and legal agreements. 7 Creando conocimiento, promoviendo mejores entornos sociales

8 Management of social impacts  5 th challenge: minimize negative impacts and maximize positive ones.  Improve identification and management of impacts: complex and mixed experiences.  Gender and vulnerable groups approaches. 8 Creando conocimiento, promoviendo mejores entornos sociales

9 Management of social impacts  Conflict (negotiation among diverse interests and positions) do not disappear and is not necessarily negative: could lead to better agreements.  6 th challenge: avoid escalation of conflict into violence that affects social and economic development. 9 Creando conocimiento, promoviendo mejores entornos sociales

10 Management of social impacts  Redefinition of shared roles among actors:  State: mechanisms of citizen consultation, ombudsman, spaces for conflict management, overseer of agreements.  RSE: international standards (ICMM, IFC, Ecuador Principles), local content, recognition and alignment with FPIC and social license principles, approaches of sustainable development, gender and human rights, development of business case.  Civil society: institutional capacity building and training, mediation (dialogue tables: i.e. Oxfam in Tintaya mine), independent and continue monitoring. 10 Creando conocimiento, promoviendo mejores entornos sociales

11 Recommendations  Environmental regulator independent from promoting entity (i.e. Ministry of Mines).  Creation of a balanced tax regime is not enough. Also important to design an institutional framework for distribution.  Define country strategy for short, middle and long term outcomes.  Transparency at macro level (revenue and taxes of the sector) and micro level (monitoring of local investment and legal agreements). 11 Creando conocimiento, promoviendo mejores entornos sociales

12 Recommendations  Improve identification and management of social impacts, including gender-sensible and vulnerable groups approach.  Create institutional spaces for conflict management.  Define standards and complementary management actions for State, industry, and civil society.  The development of sustainable mining is an opportunity to introduce positive changes in the whole society. 12 Creando conocimiento, promoviendo mejores entornos sociales

13 Thanks www.societasconsultora.com gerardocastillo@societasconsultora.com 13 Creando conocimiento, promoviendo mejores entornos sociales