Analytical Issues in Participatory Natural Resource Management

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Finally, the difficulties of deal renegotiation underscore the importance of ensuring that initial agreements are strongly negotiated in the first place, including provisions such as fiscal terms that are sufficiently flexible to adapt to changing circumstances so as to avoid renegotiations where possible. Renegotiations can potentially be anticipated by including periodic review mechanisms in contracts. Another essential element is investing in government negotiating capacity e.

CNH now seeks to increase transparency in its monitoring of Pemex and private investor compliance with the obligations contained in the laws and agreements governing extractive rights. The government of Mexico has already made clear its commitments on several important transparency measures, most notably to ensure transparency of the beneficial owners of businesses accessing government projects; implement the open contracting data standard in a number of areas including in oil exploration and extraction tenders ; and join the EITI.

CNH has taken a number of positive steps including:. Three types of contracts are common in the oil, gas and mining sector: production sharing contracts PSC , concession agreements and technical service agreements. Oil and gas contracts, even when signed, are rarely disclosed to parliament or the public, even though they contain important information such as the financial terms of a deal, the duration of the license, procedures to renew or terminate the contract, the management of operations, right of access to resources, dispute settlement procedures, etc.

Parliaments are well placed to advance contract transparency through legislation and oversight and, in many countries, members of parliament have successfully championed this issue. This briefing provides parliamentarians with information they can use to make motions to support contract transparency and challenge contract secrecy. This report examines the points of resistance to contract disclosure by governments and companies, analyses their validity from a law and policy perspective, and comes to conclusions about whether and the extent to which contracts can legally be made public since the confidentiality clauses most commonly used in the industry do not fully prevent most forms of disclosure.

It seeks to identify what information may legitimately and reasonably be kept confidential, and how the issue can be addressed more effectively by civil society institutions. The authors argue that contract transparency is critical to addressing better resource management and bringing contract stability to an industry that sees its contracts renegotiated more than any other. Contract disclosure also enables governments to negotiate better deals as the information asymmetry between governments and companies closes.

Commodity trade refers to the international trade in primary goods that can take the form of a normal exchange of goods for money or can be conducted by means of futures. The need for raw materials and natural resources are increasing and commodities are becoming strategic goods for both producing and trading countries. However, commodity trading can only translate into development outcomes for producing countries when they receive a fair deal in the production and sale of the resources, and spend the revenues in ways that benefit the public. There are major corruption risks associated with commodity trading that have received little attention so far.

Commodity trading is also a notoriously opaque sector of activity, not least because many of the companies involved are not publicly listed and due to the absence of full reporting and clear regulatory guidelines, making the sector highly vulnerable to corruption risks. Yet, this is an area that has received little attention so far from a transparency and anti- corruption perspective. Commodity trading is a sector of significant strategic importance that is exposed to major corruption risks that are not always sufficiently known or acknowledged.

Generating high financial flows, trading companies often operate in high-risk countries with weak governance, institutions, rule of law and limited state accountability. The sector is also notoriously opaque and poorly regulated, with low levels of transparency and accountability.

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Against such a backdrop, corruption is widespread, with practices ranging from bribery, money and commodity laundering, and various forms of favouritism. A number of measures can be envisaged to mitigate corruption risks in commodity trading, including transparency of commodity sales, open and transparent tenders, transparency of payments, specific due diligence processes covering both the production conditions and trading partners, the establishment of supervisory authorities as well as transparency of beneficial ownership.

Banks and financial intermediaries can also potentially play a role in the process. Despite being an important contributor to government revenues in many developing countries, levels of transparency around commodity trading remain low. This paper explores two major questions to tackle this challenge: which actors should advance transparency, and what should be made transparent?

The authors make a number of key recommendations:.

Bibliographic Information

Existing transparency initiatives have also not been primarily designed to address the risk that revenues from natural resources may be misappropriated and illicitly transferred Le Billon Based on this example, the authors draw a number of recommendations at the national and international levels including:. Countries highly dependent on natural resources are among the most severely affected by the problem of illicit financial flows. This paper presents the link between natural resources and illicit financial flows at different stages of the extractive value chain and across different extractive industries.

Most existing transparency initiatives to address governance issues in extractive sectors have not been designed with illicit financial flows in mind. Among other priorities, transparency initiatives should demand higher disaggregation of information disclosed by extractive companies and host governments.

Analytical Issues in Participatory Natural Resource Management

Transparency requirements should extend beyond revenues to licensing, contracts, physical resource flows and other production factors, as well as to public expenditure. More specifically, the author recommends:. Search Menu. Top Governance of natural resources: an overview Transparency in natural resource management Bottom.

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Governance of natural resources: an overview Natural resources can bring considerable wealth to a country, contributing to livelihoods, food security and the green economy, as well as generating trade and enterprise at local, national and international levels. Mitigating corruption risks and improving the governance of natural resource management: an overview Corruption risks can arise at any point in the extractive value chain — from the awarding of mining, oil and gas rights, extraction operations and regulation phases to revenue collection and distribution phases — and take many forms, such as bribery of foreign officials, embezzlement, misappropriation and diversion of public funds, abuse of office, trading in influence, favouritism and extortion, bribery of domestic officials and facilitation payments OECD Corruption in the extractive value chain: Typology of risks, mitigation measures and incentives OECD.

Governance of natural resources: an overview

Based on real-world corruption cases, the report provides a typology of corruption risks which could occur anywhere in the extractive value chain, including: Decisions to extract; awareness of mineral, oil and gas rights; regulation and management of operations; revenue collection; revenue management; and revenue spending and social investment projects.

Recommendations include: Use detailed corruption risk assessment to establish corruption management plans for specific interventions; focus on monitoring, evaluation and learning methods as an integral part of the intervention design; and regularly revisit core programmatic assumptions and theories of change. Managing bribery and corruption risks in the oil and gas industry Earnst and Young. Mitigating corruption risks in the extractive industries Lindner, S. U4 Helpdesk answer After providing an overview of corruption risks in the extractives sector, this Helpdesk answer provides examples from developed and emerging economies of how to mitigate these risks in the oil, gas and mining industries.

Mechanisms for monitoring operations also at state-owned enterprises that include audits, parliamentary oversight, civil society and media monitoring, as well as corporate transparency and monitoring. Systems for collecting revenues in a transparent and accountable manner through sound fiscal regimes and transparent reporting. Determining accountable ways to manage, invest and spend revenues, such as through sovereign wealth funds and strategic planning processes.

Standardising oil contract types to minimise the complexity of revenue flows, making it easier for the government to monitor contracts. Developing clear roles among government agencies in revenue flows and spending. Enhancing budget transparency and accountability, including setting up a review board with representatives from government, donors and civil society to promote transparency and accountability in resource revenue management. Resource Governance Index: A measure of transparency and accountability in the oil, gas and mining sector Natural Resource Governance Institute. The report makes the following recommendations: Disclose contracts signed with extractive companies.

Ensure that regulatory agencies publish timely, comprehensive reports on their operations, including detailed revenue and project information. Extend transparency and accountability standards to state-owned companies and natural resource funds. Make a concerted effort to control corruption, improve the rule of law and guarantee respect for civil and political rights, including a free press.

Accelerate the adoption of international reporting standards for governments and companies.

Transparency in natural resource management

Collaboration against corruption? U4 Issue Multi-stakeholder processes — involving representatives from civil society, government and the private sector — are increasingly viewed by donors as a means to promote accountability and address corruption-related challenges in natural resource sectors.

Institutional and regulatory framework Oil, gas and mining laws and contracts establish the terms of what a country might gain from extraction. Grand corruption in the regulation of oil Williams, A. U4 Issue This paper focuses on how and why corruption can distort or prevent efficient regulation of the oil sector. Factoring in governance is not enough.

Mining codes in Africa, policy reform and corporate responsibility Campbell, B. Transparency and accountability in Lebanon's emerging petroleum sector Martini, M. U4 Helpdesk answer Following the discovery of petroleum and gas in Lebanon, the country has taken several steps to establish an adequate institutional and legal framework that would allow effective exploration and management of resources.

Collaborative and adaptive management of natural resources The governance of natural resources is complex, with a myriad of competing rights, users and governance structures, involving a wide range of actors at multiple levels and across a broad range of temporal and geographical scales. Topic guide: Governance of natural resources Nunan, F. This topic guide explores critical aspects of natural resource governance, including: Decentralised and collaborative natural resource governance Much natural resource governance involves decentralised arrangements, but these have not always delivered improvements in natural resource sustainability, partly due to the nature and degree of power-sharing, where insufficient power and resources are devolved to decentralised structures.

Multi-level and adaptive governance Decision-making happens at multiple levels and by different actors, including different parts of government. Institutions and politics Access to, and control over, natural resources is mediated by a range of institutions, formal and informal.

Natural resource management transparency and governance

Accountability While lack of accountability in general is perceived as a common problem in natural resource governance, lack of downward accountability to resource users is noted as a particular challenge. A global assessment of community based natural resource management: Addressing the critical challenges of the rural sector Anderson, J. Preventing corruption in community mineral beneficiation schemes Michael Nest. U4 Issue This paper analyses patterns of corruption and corruption risks related to community mineral beneficiation schemes CMBSs that distribute benefits funded by mineral revenues to communities.

Looking at the suitability of anti- corruption strategies for CMBSs, it argues that the fundamental purpose of CBMSs is local-level development controlled by the community. Cross-disciplinarity is polarized, but unidirectional cooperative research effort. Trans-disciplinarity contributes theory, research methods, and modes of action that are not located on current disciplinary and interdisciplinary maps. Disciplinary integration is a key element of trans-disciplinarity, but there is also an element of including experience-based knowledge and "non-scientific" everyday knowledge.

Interdisciplinary generation of knowledge emerges in different ways. Possibilities lie in the fact that the universe of information, theory, methods, approaches and knowledge potentially available is much larger outside than within a compartmentalized disciplinary world.

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A key challenge lies in finding ways to integrate such knowledge in a consistent and meaningful way. Table 1. Protected areas and people Rural development Development project assessments. Many claim that interdisciplinary efforts naturally gravitate towards the establishment of new disciplines.

The number of disciplines, sciences and faculties has increased over time. A dominant mechanism has been the differentiation and specialization of scientific knowledge, also through interdisciplinary endeavors. Klein describes this as a process from disciplinary to interdisciplinary to new disciplinary approaches.

The goal of interdisciplinarity is not to develop new disciplines. It may, in most cases, seem wiser to maintain disciplinary boundaries, while also working together in fields of common interest.

Why natural resource use matters?

Most knowledge is generated within the realm of disciplinary boundaries, and rather than seeing the two as alternative ways of generating knowledge, one may regard them as complimentary. We see this as a disciplinary approach to interdisciplinarity. Integration and translation efforts require researchers who are able to understand concepts, methods and knowledge from different sciences.

The education process should ensure that the new generations of researchers, educators and practitioners are able to integrate and convey interdisciplinary knowledge.

Analytical Issues in Participatory Natural Resource Management Analytical Issues in Participatory Natural Resource Management
Analytical Issues in Participatory Natural Resource Management Analytical Issues in Participatory Natural Resource Management
Analytical Issues in Participatory Natural Resource Management Analytical Issues in Participatory Natural Resource Management
Analytical Issues in Participatory Natural Resource Management Analytical Issues in Participatory Natural Resource Management
Analytical Issues in Participatory Natural Resource Management Analytical Issues in Participatory Natural Resource Management
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