Synergies and Scope for Collaboration: The Example of Certification of Trading Chains (CTC) and EITI

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Information about Synergies and Scope for Collaboration: The Example of Certification of...

Published on December 9, 2008

Author: EPetrilli

Source: slideshare.net

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Nicholas Garrett, Resource Consulting Services / LSE Crisis States Research Centre (on behalf of BGR)

Exploring Synergies from Partnership The Case of the EITI and Certified Trading Chains in Mineral Production (CTC) Nicholas Garrett 8 th Annual CASM Conference Brasilia, October 2008

Partnership “ Partnership is critical to effective problem solving of the challenges facing business and the developing world. Simply put, the issues are too complex and interdependent, and the resources and legitimacy for tackling them too dispersed between sectors, for any one group to have all the solutions alone.” (Source : Jane Nelson , Director of the Corporate Social Responsibility Initiative at the Kennedy School of Government, Harvard University) © Nicholas Garrett, 2008

“ Partnership is critical to effective problem solving of the challenges facing business and the developing world. Simply put, the issues are too complex and interdependent, and the resources and legitimacy for tackling them too dispersed between sectors, for any one group to have all the solutions alone.”

(Source : Jane Nelson , Director of the Corporate Social Responsibility Initiative at the Kennedy School of Government, Harvard University)

Partnership - Caveats Not an answer to every problem Not easy to establish, sustain and scale up Face strategic, policy-related challenges Operational Obstacles © Nicholas Garrett, 2008 Think first! Does it make sense?

Not an answer to every problem

Not easy to establish, sustain and scale up

Face strategic, policy-related challenges

Operational Obstacles

Partnership - Benefits Harness the skills and resources of different sectors and actors Improve reach and impact Achieve greater efficiency Increase legitimacy © Nicholas Garrett, 2008 More effective and stronger development solutions

Harness the skills and resources of different sectors and actors

Improve reach and impact

Achieve greater efficiency

Increase legitimacy

We support transparency in natural resources sectors! © Nicholas Garrett, Resource Consulting Services Limited, 2008 We support transparency in natural resources sectors! Let’s explore potential synergies and scope for partnership!

Exploring Synergies from Partnership The EITI and CTC – why? Both initiatives: provide incentives for companies and governments to support good natural resource governance in host countries have strong emphasis on transparency are of strategic importance to German development cooperation The EITI: already enjoys widespread political support welcomes debate on possible future avenues to further transparency, also in ASM CTC: requires more widely spread political support seeks legitimacy is learning © Nicholas Garrett, 2008

Both initiatives:

provide incentives for companies and governments to support good natural resource governance in host countries

have strong emphasis on transparency

are of strategic importance to German development cooperation

The EITI:

already enjoys widespread political support

welcomes debate on possible future avenues to further transparency, also in ASM

CTC:

requires more widely spread political support

seeks legitimacy

is learning

What is CTC Step by step move from CSR system of governance and assurance towards third party verification to possibly government regulations Phased approach from voluntary towards mandatory assurance of social and environmental performance Draft Standards have been developed Not a final product, planning & consultation are ongoing Rwanda Pilot to start 2009 DRC concept developed 2009 © Nicholas Garrett, 2008

Step by step move from CSR system of governance and assurance towards third party verification to possibly government regulations

Phased approach from voluntary towards mandatory assurance of social and environmental performance

Draft Standards have been developed

Not a final product, planning & consultation are ongoing

Rwanda Pilot to start 2009

DRC concept developed 2009

CTC Intervention in the Value Chain Intervention depends on depth of implementation © Nicholas Garrett, 2008

Intervention depends on depth of implementation

© Nicholas Garrett, 2008

© Nicholas Garrett, 2008

© Nicholas Garrett, 2008

© Nicholas Garrett, 2008

The EITI The EITI Success through narrow focus on reconciliation of payments – ONE aspect of the value chain only!! © Nicholas Garrett, 2008

The EITI

Success through narrow focus on reconciliation of payments – ONE aspect of the value chain only!!

The EITI - Related Concepts The “EITI + concept” (applied in oil and gas in Nigeria) Reconciliation of Payments Capacity Building Financial Audits of Companies and Government Process Audits Public Information Campaigns © Nicholas Garrett, 2008

The “EITI + concept” (applied in oil and gas in Nigeria)

Reconciliation of Payments

Capacity Building

Financial Audits of Companies and Government

Process Audits

Public Information Campaigns

The EITI - Related Concepts The “EITI ++ concept” (World Bank and others) Intervention along the entire value chain © Nicholas Garrett, 2008

The “EITI ++ concept” (World Bank and others)

Intervention along the entire value chain

The EITI - Related Concepts “ EITI in ASM concept” History: Until 2007: sporadic discussions within DFID 2007: EITI in ASM report Imperative to distinguish between the AM and SSM value chains The AM Value Chain: © Nicholas Garrett, 2008

“ EITI in ASM concept”

History:

Until 2007: sporadic discussions within DFID

2007: EITI in ASM report

Imperative to distinguish between the AM and SSM value chains

The AM Value Chain:

The EITI - Related Concepts “ EITI in ASM concept” The SSM Value Chain: © Nicholas Garrett, 2008

“ EITI in ASM concept”

The SSM Value Chain:

CTC and the EITI – Contact Points Value Chain Intervention Biggest overlap with EITI concepts, particularly “EITI in ASM” CTC has wide focus, so actual overlap depends on depth of implementation of any of the EITI concepts © Nicholas Garrett, 2008

Value Chain Intervention

Biggest overlap with EITI concepts, particularly “EITI in ASM”

CTC has wide focus, so actual overlap depends on depth of implementation of any of the EITI concepts

CTC and the EITI – Contact Points CTC Standard 17 : “Implementing companies are required to meet fiscal obligations required by host government law and publish all payments made to government in accordance with the standards of the EITI” © Nicholas Garrett, 2008 creates and enhances the governance structures required for the implementation of the EITI and/or its related concepts does not equate to EITI implementation in ASM

CTC Standard 17 : “Implementing companies are required to meet fiscal obligations required by host government law and publish all payments made to government in accordance with the standards of the EITI”

CTC and the EITI – Partnership Synergies vary between CTC and the EITI – and CTC and the EITI concepts If the EITI concepts were to develop further, more synergies would arise and partnership could be explored further Significant synergies between the EITI and CTC already exist - scope for collaboration in specific areas. © Nicholas Garrett, 2008

Synergies vary between CTC and the EITI – and CTC and the EITI concepts

If the EITI concepts were to develop further, more synergies would arise and partnership could be explored further

Significant synergies between the EITI and CTC already exist - scope for collaboration in specific areas.

CTC and the EITI - Synergies International Mutual Learning International Secretariat Location Shared and/or Co-hosted Conferences Formal Representation Establishing the “EITI in ASM concept” National Enhancing Government Capacity and Control Functions Finding Civil Society Stakeholders to contribute to CTC Enhancing Civil Society Capacity Building Trust and Mutual Knowledge with the Private Sector National Level Process Management National and Sub-National Level Learning and Trust Building Data Gathering and Auditing Information Exchange Public Information Campaigns © Nicholas Garrett, 2008

International

Mutual Learning

International Secretariat Location

Shared and/or Co-hosted Conferences

Formal Representation

Establishing the “EITI in ASM concept”

National

Enhancing Government Capacity and Control Functions

Finding Civil Society Stakeholders to contribute to CTC

Enhancing Civil Society Capacity

Building Trust and Mutual Knowledge with the Private Sector

National Level Process Management

National and Sub-National Level Learning and Trust Building

Data Gathering and Auditing

Information Exchange

Public Information Campaigns

Muito Obrigado! Download the corresponding report from: www.resourceglobal.co.uk For further details email: [email_address] © Nicholas Garrett, 2008

Download the corresponding report from:

www.resourceglobal.co.uk

For further details email:

[email_address]

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