Transcript The Framework for Extractive Industries Governance in

THE FRAMEWORK
FOR EXTRACTIVE INDUSTRIES
GOVERNANCE IN ASEAN
LAUNCHING
JAKARTA, 28 NOVEMBER 2014
BACKGROUND
WHAT IS THIS FRAMEWORK
• A set of prescriptions to ensure
extractive industries resources
can be utilized to improve human
development, boost equitable
economic growth of ASEAN member
states, and accelerate
connectivity and economic
integration in ASEAN.
• A proposal from civil society of
standard-setting for Extractive
Industries Governance to be
implemented by ASEAN.
THE EXTRACTIVE INDUSTRIES
RESOURCES & ASEAN DEVELOPMENT
• Extractive Industries resources play
vital role in ASEAN member states
economic development
– Source of income/revenues
– Source of raw material and supply of
energy
• Potential of minerals sector to be an engine for
greater economic growth and social progress in the
ASEAN
• Key component in realizing AEC’s
objectives
CHALLENGES AND OPPORTUNITIES
SIGNIFICANCE
SIZE OF RESOURCES
CURRENT GROWTH OF THE
SECTOR
GROWING ROLE IN THE
ECONOMY
WEAK GOVERNANCE
ENVIRONMENTAL DESTRUCTION
HUMAN RIGHTS VIOLATION
CORRUPTION
INTRANSPARENT PRACTICES
ILLICIT TRADING
CO2 EMISSION
PROBLEM IN THE
VALUE CHAIN
z
BACKGROUND
?
WHY THE REGIONAL
FRAMEWORK IS
NEEDED
WHY THIS FRAMEWORK
• Development of Extractive
Industries in ASEAN requires
strong and effective policy and
regulatory framework.
– Balance of economic, social and
environmental benefits (people,
planet and profit)
– Guarantee transparency and
accountability in all stage of the
value chain
– Effective system to deliver
tangible benefits to the citizen
– Attracting investment
WHY THIS FRAMEWORK
• Consider level of extractive
industries development in and
diversity of ASEAN member
states
• Governance standard for
extractive industries to
support the realization of AEC
GOAL
• The development of
accountable, transparent and
well governed extractive
industries that effectively
stimulate economic growth at
regional, national and subnational level,
environmentally friendly,
socially responsible and
appreciated by surrounding
communities.
OBJECTIVES
•
Provide principles and a platform for
harmonization of policies in extractive
industries in ASEAN member states.
•
Provide standard-setting instrument for
effective management of extractive
industries.
•
Ensure
taking
stages
member
•
Guidelines for development monitoring
tools for progress.
harmonization and standardization
into consideration development
of extractive industries in
states.
THE LEGAL CONSIDERATIONS
AND PRINCIPLES
LEGAL CONSIDERATION
ASEAN CHARTER
ASEAN VISION 2020
ASEAN HUMAN RIGHTS DECLARATION
2004
VIENTIAN
E ACTION
PROGRAM
AEC
BLUE
PRINT
2005 MINISTERIAL
UNDERSTANDING
ON
COOPERATION IN
MINERAL
2008 MANILA DECLARATION
AMCAP 2011-2015
PRINCIPLES
SUSTAINABLE DEVELOPMENT
EQUITY
ACCOUNTABILITY
AND
TRANSPARENCY
POLLUTERS PAY
BASIC RIGHTS
PRECAUTIONARY
APPROACH
PARTICIPATORY
DECISION MAKING
THE FRAMEWORK
PROTECTION OF THE ENVIRONMENT
• Designation of “No-Go-Zone”
• Environmental and Social Impact
Assessment
• Prevention of hazardous spillage
• Compliance mechanism and audit
• Rehabilitation fund
• Managing environmental impact of
small and artisanal mining
RESPECT AND PROTECT HUMAN RIGHT
•
Respect and protect human right in
extractive industries activities
•
Respect and protect local community,
impacted community and indigenous people
•
Abide international Human Rights
mechanism in conflict zone
•
Grievance mechanism
•
Guidelines for relocation and
compensation
•
Peaceful cohabitation small and large
scale resource extraction rights
holders.
TRANSPARENT AND ACCOUNTABLE PRACTICE
•
Penalties for false, incomplete,
misleading information to the public
•
Implementation of EITI
•
Combat illicit mineral commodities
trading
•
Certification of mineral commodities
trade
•
Database on extractive industries
resources
•
Openness of data related to revenue flow
•
Transparent decision making process
•
Oversight for artisanal and small scale
SOUND FISCAL FRAMEWORK FOR ECONOMY
GROWTH
•
Legislation to optimize and protect
revenue
•
Channel all revenues to budget system
•
Spending for basic and social
infrastructure
•
Investment in resource knowledge
infrastructure
•
Development of downstream and upstream
value addition
•
Revenue sharing to local community
•
Establishment of natural resource fund
•
Auction and competitive bidding
MEANS OF
IMPLEMENTATION
COUNTRY LEVEL PROCESS
• Establish multi-stakeholders
group to carry out the RA/GA,
set up focal point
• Undertake Rapid Assessment/Gap
Analysis (RA/GA)
• Based on RA/GA, draw Action
Plan
• Implement the Action Plan
• Review the result and report to
ASEAN sectoral body
ASEAN LEVEL
• Sectoral body adopt and promote the
Framework
• Review mineral/energy policies of
ASEAN member states
• Setting/establish peer-review
mechanism of RA/GA
• Setting mechanism to monitor the
implementation
• Provide technical assistances, enhance
dialogues with stakeholders, and
dialogue partner
ASEAN LEVEL
• Set initiative, sectoral body adopt
and promote the Framework
• Review mineral/energy policies of
ASEAN member states
• Setting/establish peer-review
mechanism of RA/GA
• Setting mechanism to monitor the
implementation
• Provide technical assistances, enhance
dialogues with stakeholders, and
dialogue partner
Integrating and reinforcing
other initiatives
• Extractive Industries Transparency
Initiative (EITI)
• Natural Resource Charter
• Open Government Partnership (OGP)
• UN Global Compact
• Open Contracting Partnership
• Voluntary Principles on Security
and Human Rights
This work is made possible through a collaboration
of and contribution made by civil society
organizations across South East Asia, institutions
and individuals, and funding assistance by USAID
IKAT-US Project through NRGI (RWI)
THANK YOU