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Meg Taylor

Conferência Ethos 2012

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Meg Taylor

  1. 1. Ethos International ConferenceBusiness and Civil Society in the New Economy June 13, 2012Office of the Compliance Advisor Ombudsman (CAO) for IFC and MIGA 1
  2. 2. Birth of “accountability model” arose from 1992 Rio Summit 2
  3. 3. Independent Accountability & RecourseMechanisms World Bank responded by setting up “Inspection Panel” (1993) to respond to civil society concerns CAO created in 1999 for World Bank private sector Today, all multilateral development banks have “Independent Accountability Mechanisms”: - African Development Bank (AfDB) - Asian Development Bank (ADB) - European Bank for Reconstruction and Development (EBRD) - European Investment Bank (EIB) - Inter-American Development Bank (IDB) 3
  4. 4. Who is the Compliance AdvisorOmbudsman (CAO)? Independent accountability & recourse mechanism for IFC & MIGA, World Bank Group Social & environmental mandate Triggered by locally impacted communities 100+ complex multiparty disputes in 38 countries 4
  5. 5. “Citizen-led” accountability & recourse World Bank Group Board PRESIDENT Robert B. Zoellick IFC MIGA Private Private Private sector client sector client sector client Project-affected communities 5
  6. 6. CAO works at the intersection of corporate - community conflict 6
  7. 7. Hydropower,Himachal Pradesh, India
  8. 8. Water privatization,Guayaquil, Ecuador
  9. 9. Sugar industry,Chichigalpa, Nicaragua 9
  10. 10. Palm oil, West Kalimantan &Sumatra, Indonesia
  11. 11. Oil pipeline, Chad &Cameroon
  12. 12. Overview of CAO’s work 2000-2012:Regions Latin America accounts for almost 40% of complaints Complaints from Asia region on increase Mobilized regional civil society? Greater awareness of IFC, and CAO? 2% 2% 8% Latin America and Caribbean Sub-Saharan Africa 13% 39% South Asia East Asia and the Pacific Europe and Central Asia 15% Middle East and North Africa World a 21% IFC/MIGA Projects in CAO Cases by Region, FY00-12 12
  13. 13. SectorsFour industry sectors predominate in complaints: Extractive industries, infrastructure, agribusiness& manufacturing Pattern reflects resource intensity of these industries - i.e. land and water use 3% 2% Oil, Gas, Mining and Chemicals 13% Infrastructure 32% Agribusiness Global Manufacturing & Services 21% Financial Markets Advisory Services 29% IFC/MIGA Projects in CAO Cases by Industry, FY00-12 13
  14. 14. Environmental & Social Issues Socio-economic grievances characterize 80% of complaints = access to & distribution of local benefits Consultation & disclosure (73%), Land (60%), Water (45% - rises to 90% in mining projects) 90% 81% 80% 77% 73% 70% 60% 60% 53% 52% % of Cases 50% 45% 40% 35% 30% 20% 20% 15% 11% 10% 0% 14 Frequency of Issues Cited in CAO Cases, FY2000-12
  15. 15. What is the framework that informsCAO’s work? Policy on Social and Environmental Sustainability Performance Standards 1-8: 1. Assessment & Management of Social and Environmental Risks and Impacts 2. Labor and Working Conditions 3. Resource Efficiency and Pollution Prevention 4. Community Health, Safety and Security 5. Land Acquisition and Involuntary Resettlement 6. Biodiversity Conservation & Sustainable Management of Living Natural Resources 7. Indigenous People 8. Cultural Heritage Policy on Disclosure of Information 15
  16. 16. Voluntary standards & guidelines forprivate sector IFC standards applied by broader private sector - Equator Principles: Environmental and social standards covering 90% of global project finance - Used by 30+ OECD Export Credit Agencies - Used by European Development Finance Institutions - Global benchmark used by significant number of industry associations & companies worldwide Voluntary initiatives & principles: - UN Global Compact - UNEP Finance Initiative - Global Reporting Initiative (GRI) - UN Business and Human Rights Guiding Principles - OECD Guidelines - Extractive Industries Transparency Initiative (EITI) 16
  17. 17. Even with the best standards & commitments, can you predict where conflict will arise? 17
  18. 18. Mapping a conflict Country X Province Y is resource rich 18
  19. 19. Geophysical mapping of the asset Governor of Province Y supports private sector investment
  20. 20. Delineation of land parcels Permits issued by national government 20
  21. 21. Company acquires permits forexploration in specific corridor Has international financing and support of national and provincial governments 21
  22. 22. Tribal communities claim ancestraldomain Claim company has violated their lands without Free, Prior, & Informed Consent (FPIC) 22
  23. 23. National Council for Indigenous Peoplesdetermines ancestral boundaries Excludes one tribal community - decision determines company consultation strategy 23
  24. 24. Tribal communities are divided Chiefs are divided for & against mining activities 24
  25. 25. Municipal boundaries Elected mayors also have oversight of their domains 25
  26. 26. National Department of Environmentdefines forestry reserves Overlaps with lands permitted for mining exploration 26
  27. 27. Village boundaries & elected captains Conflict over tribal land claim which overlaps with village land 27
  28. 28. Company embarks on CSR projects With villages and one tribal community “for” the project 28
  29. 29. NGOs start a campaign against mining Support interests of disgruntled tribal community 29
  30. 30. Complexity makes conflict inevitable What can you do about it? 30
  31. 31. You have to uncover common interests
  32. 32. Tools you can use Early social mapping - interest-based to identify conflict potential Livelihood needs assessment (communities) Give people an opportunity to participate in the project Participatory approaches when facts are in dispute Where there is conflict, use dispute resolution: - Mediation, facilitation, assisted negotiationBUT, there is no one model or solution 32
  33. 33. Summary: Outstanding questions Are voluntary standards credible to civil society? Transparency: what is disclosed? - The project & CSR strategy? - Or outcomes on the ground? Accountability: by whom and to what? - Are there publicly accessible mechanisms to provide accountability/recourse against commitments made? - E.g. Equator Banks? What about mandatory frameworks? - Is self-regulation enough in the context of Rio+20 goals and a lack of government leadership in most regions? 33
  34. 34. CAO Film: Building Company-CommunityDialogue in the PhilippinesFilm produced by Corporate Social Responsibility Initiative at Harvard & UN Business and Human Rights ProgramSee BASESWiki: Business & Society Exploring Solutions 34http://baseswiki.org/en/Video/Philippines_Dialogue
  35. 35. Contact us Compliance Advisor Ombudsman for IFC & MIGA 2121 Pennsylvania Avenue NW Washington, DC 20433 www.cao-ombudsman.org www.facebook.com/CAOoffice www.cao-ombudsman.org

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