Extractives for Development: - PDF document

Extractives for Development: Emerging
Extractives for Development: Emerging Global Trends in Extractive Industries Sustainable Energy – Oil, Gas and Mining Unit The World Bank Group Washington, D.C. USA 2 •Resource rents – amounted to 4 trillion USD or

7% of global GDP (2008) •Extrac
7% of global GDP (2008) •Extractives are leading/disproportionate source of investment and rents for many WBG clients (50+) •Extractives present massive opportunities and challenges for fragile, poor, and emerging economies

–”Paradox of Plenty” or ”Lifeli
–”Paradox of Plenty” or ”Lifelines for Development” •Intersecting country, regional, and global mega-trends –BRICs+, energy & resource security –Climate change/environment –”Digital Democracy” •Limi

ts of traditional development aid in the
ts of traditional development aid in these settings –Knowledge, Partnerships, Leverage 21st Century Trends 4 ”Prosperity” ”Resource Curse” Low-level equilibrium Performance History / Time Institutional Quality

“Absorptive Capacity” Country Diag
“Absorptive Capacity” Country Diagnosis Discovery Depletion A Shift in Perspective from creating the enabling environment for investment Development Diversification Depletion Discovery To Inter-generational Outcomes ar

ound Economic Growth & Diversification
ound Economic Growth & Diversification Communities / NGOs Client Countries Inclusive Growth Using Tripartite Dialogue Extractive Industries Discovery Depletion Development Diversification The Four “D’s” of E4D:

Discovery, Depletion, Development and Di
Discovery, Depletion, Development and Diversification through shared values – aligning private and public sector investments WBG EI Task Group  Connecting up the World Bank Group for E4D EI Sourcebook Global Knowledge Cons

ortium  One Stop Portal for Knowl
ortium  One Stop Portal for Knowledge  Providing effective development assistance to resource endowed settings (e.g., EI TAF, partnerships) Political Economy E4D Political Economy Hot Topics New Analytics and Researc

h on emerging topics A global & d
h on emerging topics A global & diverse network of E4D policy and capacity centers of excellence Frontline Engagement  Informing “good fit” priorities and options for country context realities (“Rents to Riches”) GOX

I Platform Connecting Stakeholders
I Platform Connecting Stakeholders EI Sourcebook Knowledge Gaps Global Consortium GOXI Platform World Bank Response 10 Knowledge Management Going Forward www.EISourceBook.Org 11 Reaching the Frontline www.Goxi.Org

Extractives for Development (E4D) Co
Extractives for Development (E4D) Communities / NGOs Client Countries Extractive Industries 13 GeoData Resource Corridors Public Financial Management Transparency Knowledge Gaps Pre-competitive geo-science inform

ation for improved award of contracts
ation for improved award of contracts and licenses. Aligning private and public investments through shared value e.g open access infrastructure The management of resource revenues and the expenditures that they finance.

EITI transparency of payments and O
EITI transparency of payments and Open contracting initiatives to strengthen accountability. Resource Corridors 1. A sequence of investments and actions to leverage a large extractive industry investment , into broader e

conomic growth and diversification 2
conomic growth and diversification 2. Prioritized investments (public and private) around shared infrastructure and programs 3. A defined geographic area of reference Resource Corridors Source: Jourdan, 2011 cited Hudso

n et al 2012 Resource Corridors ïƒ
n et al 2012 Resource Corridors The 47 poorest districts (red) are located in the most remote parts of the Lao PDR Strong correlation between poverty and lack of infrastructure National development plans focused on in

frastructure and supported by developme
frastructure and supported by development banks (ADB and World Bank) Realizing potential along planned resource corridors 16 16 ADB Northern Road Corridor Hongsa Lignite Power Plant Yunnan copper Agriculture/forestry N

am Theun 2 1050MW Hydro Theun Hin
am Theun 2 1050MW Hydro Theun Hinboun 400MW Sepon Gold/Copper Mine Savannaket Special Economic Zone ADB East West Road Corridor Resource Corridors 17 Aligning private and public investments to increase local linkage

s (hard & soft infrastructure) to incre
s (hard & soft infrastructure) to increase economic growth and diversification Pilbara Case Study, Western Australia Global Case Studies: G20, Africa, South Asia, East Asia Dissatisfaction within Community, Government and Industry

regarding overall economic development
regarding overall economic development impacts and low levels of economic linkages Resource Corridors 18 Pilbara Australia Case Study Resource Corridors 19 Pilbara Australia Case Study Resource Corridors

World Bank Mining Policy Group 20 M
World Bank Mining Policy Group 20 More recently aligned infrastructure (ports, rail), guided by new government policies, increases local economic linkages. Gov’t provides community infrastructure, education, health Pilbara Austra

lia Infrastructure Improvements R
lia Infrastructure Improvements Resource Corridors 21 Pilbara Australia Infrastructure Improvements Resource Corridors World Bank Mining Policy Group 22 Improved regional planning through alignment of private and

public sector investments. Spatial pl
public sector investments. Spatial planning of high and low impact areas, greater attention to alternative land uses Pilbara Australia Improved Spatial Planning Resource Corridors 23 Pilbara Case Study Lessons Learned Re

source Corridors Global Case Studies
source Corridors Global Case Studies: Next Steps Expand the G20 Global Case Study set •Carajás •Minas Gerais •Quebec Canada •Expand on Pilbara •Antofagasta – cluster analysis Build partnerships

for further discussion Summarize Cha
for further discussion Summarize Challenges and Solutions •differing time lines between industry and government •Finding shared value •Partnership structures •Stakeholder roles / responsibilities Resource Corridors

May 20, 2005 World Bank Mining Pol
May 20, 2005 World Bank Mining Policy Group 25 Transparency Benefits of Transparency in Extractive Industries: A platform to build trust between stakeholders •Demonstrating industry’s commitment to good governance

- signal to stakeholders of
- signal to stakeholders of the sector’s intention •Single-window information disclosure system - leads to increased data access + informed dialogue •Increased efficiency in collection of resource re

venues through disclosure / reconcili
venues through disclosure / reconciliation / verification (revenue transparency) •Empowers civil society to seek greater accountability •Assists in corporate risk management Transparency Outcomes Inputs / Outputs Discove

ry Depletion Development Diver
ry Depletion Development Diversification • Licensing: -Contract Transparency •Regulation and Monitoring: - Increased data access Transparency: Key Interventions Across t

he EI Value Chain • Collection of
he EI Value Chain • Collection of Taxes / Royalties -Implementing Extractive Industries Transparency Initiative (EITI) -Localize ownership: Implement at Sub-national level -Mainstreaming EITI benefits all 5 chevrons of the v

alue chain Transparency Outcomes
alue chain Transparency Outcomes Inputs / Outputs Discovery Depletion • Revenue Management and Allocation : -Data obtained through EITI can be used to inform revenue allocation • Sustainable Development Policies:

-Transparent benefit-sharing agreem
-Transparent benefit-sharing agreements -Tripartite dialogue Development Diversification Transparency: Key Interventions Across the EI Value Chain Transparency Transparency and stakeholder engagement: some of the que

stions asked (country experiences ann
stions asked (country experiences annexed) •How much has been paid / collected? •How much was produced (physical)? •What is the tax regime, exemptions etc? •How much money should have been paid (contracts)? â€

¢What were the regional revenue breakdo
¢What were the regional revenue breakdowns? •What was the money spent on (budget transparency)? •What impact did it have? Transparency www.contractroadmap.org Contract Transparency (II) Transparency World Bank Mini

ng Policy Group 31 Panel Discussion:
ng Policy Group 31 Panel Discussion: •ICMM Partnerships for Development: Case Studies of the Carajas Region - Kathryn McPhail •World Bank Extractives for Development (E4D) - Michael Stanley - Daniele La Por

ta - Javier Aguilar Thank You â€
ta - Javier Aguilar Thank You •Michael Stanley (Mining Lead) mstanley@worldbank.org •Daniele La Porta (Senior Mining Specialist) dlaporta@worldbank.org •Javier Aguilar (Senior Mining Specialist) jaguilar@worldbank.org

Oil, Gas & Mining Policy Unit 1850
Oil, Gas & Mining Policy Unit 1850 I Street, Washington D.C. USA 20043 EITI (international initiative on revenue transparency) reports currently tell us: •How much money is received by a government from its oil, gas and mining

•The difference between what the gov
•The difference between what the government says it received and what the companies says it paid Licensing - Mongolia Social and environmental protection payments in Mongolia Production and value of sales - Tanzania Subnatio