Transcript Participatory planning and monitoring

Managing risk and maintaining
license to operate:
Participatory planning and monitoring
in the extractive in the extractive
industries
A training module
1
Training module overview
Session 1: Participatory approaches to corporate-community
relations in the extractive industries: context, concepts,
benefits and risks
Session 2: Participatory planning and monitoring tools and
mechanisms for the project cycle
Session 3: Key focus areas, challenges and success factors
Session 4: Understanding diverse perspectives
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Participatory planning and
monitoring
Session 1
Participatory approaches to
corporate-community relations in the
extractive industries:
context, concepts, benefits and risks
3
Key concepts for a shared
vocabulary
What do the following terms mean to you?
• Participation
• Engagement
• Accountability
• Social license to operate
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The natural resource context
Groups
Community
representatives
Company
representatives
Other stakeholders
(eg donors, INGOs)
Government
(local and national)
Questions for discussion
What are common problems for
communities?
What kinds of changes tend to
occur in communities around
extractive operations?
What are common social, political
and environmental characteristics
of localities where extractive
companies have operations?
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Common characteristics of the
local context
• Weak local governance
• Legacy of conflict
• Struggles over distribution of the benefits of extractive
development
• Uncertain land tenure
• Perceived lack of legitimacy of the laws and regulations which
govern MNC activity
• Varied institutions of culture and history in isolated areas
• Complicated network of relationships within communities
• Population migration into economic zone of opportunity
• Companies as de facto governance and/or service providers
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Implications for companies,
communities and governments
Participatory approaches mean a shift in:
• Corporate culture and roles
• Strategic thinking
• Business practices and communication
To achieve:
• Jointly defined problem and solution
• Shared resources and responsibilities
• Leveraged cash, expertise, systems and networks
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Features of participatory
approaches
• Source of expertise
• Time scale of parties
• Accommodates changing conditions, changing
needs, priorities and changing expectations.
• Actions and implementation are collaborative;
responsibility is shared
• Long term process, but indicators of progress
and co-monitoring can demonstrate
achievements.
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Spectrum of Community-Company
Engagement
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Participatory approaches
How might a participatory approach help you
in your work?
How might a participatory approach hinder
you in your work?
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Benefits and risks
What potential benefits and risks can you see from
taking a participatory approach:
- From a company perspective?
- From a community perspective?
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Potential benefits for companies
• Improve / maintain local social license to operate
• Enhance employee morale, satisfaction, motivation and retention
• Reduce risk of conflict and delays / ensure stable operating
environment
• Prospect of faster permitting and approvals
• Reduce risk of global criticism and reputational damage
• Help obtain project financing
• Ensure more effective use of corporate resources
• Help meet regulatory requirements for local benefit from extraction
• Local knowledge can complement and enhance technical expertise
• Increase productivity
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Potential benefits for
communities
• Greater voice in planning and decision-making.
• More likely that development outcomes meet the
needs and aspirations of local communities.
• Sustainability and increased self reliance, and
strengthened local institutions over time.
• Access to resources, including new ideas,
technology, skills.
• Potentially stronger economic base, which could
contribute to rural capital formation.
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Risks and challenges
For communities
For companies
• Building shared understanding and trust
requires significant investment of time
• Building shared understanding requires
significant investment of time and
resources
• Expected benefits are not clear, and are
usually only realized after many social and
economic costs have already been borne
by communities
• Relinquishing control over how resources
are allocated can be counter-intuitive and
uncomfortable
• Risk of being ‘co-opted’ into appearing to
support something they do not
• Changing power relationships
• Losing independence and ability to
criticise
• Different expectations and language
• Higher cost outlays which may not be
recoverable
• Obligation schedules and procurement
concerns
• Different expectations and language
• Requires skills and capacity for working
across cultures and with communities
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Participatory planning and
monitoring
Session 2
Participatory planning and
monitoring tools and mechanisms
for the project cycle
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The project cycle
E n g a g e m e n t
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Range of participatory
tools and mechanisms
•
•
•
•
•
•
•
•
Participatory planning
Community forums
Good neighbor agreement
Community suggestion boxes
Participatory budgeting
Community scorecards
Citizen report cards
Community monitoring
Training and capacity building, access to information, and
mutually agreed-upon metrics for monitoring are integral to
each of the tools.
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Tools and mechanisms on the
spectrum of participation
Increasing levels of participation and community impact
No action
Inform
Consult
Nonparticipation
Description
• Company ignoring local
knowledge
Tools
• Heightened security
• Third party facilitation
stakeholder engagement
Collaborate
Empower
Co-planning and monitoring
• No shared understanding
• Lack of legitimacy
• No power sharing
• Industrial sabotage,
hostage taking
Involve
Shared-understanding
Trust
Legitimacy
• Create linkages with
different actors to open
information flows
• Civil society organization
• Register complaints with
local authorities
• Naming, shaming and
faming
• Community monitoring
• Training/ hiring/ sourcing
• Community scorecards
strategies
• Citizen report cards
• Information sharing
• Good Neighbor
• Community suggestion
Agreements
boxes
Power-sharing
• Stakeholders are
co-decision makers
• Co-planning
committees and
partnerships
• Community forums
• Co-budgeting
• Co-evaluation
• Co-monitoring
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Tools and mechanisms in the
project cycle
Exploration
Legacy
• Information meetings
• Co-monitoring
• Contract negotiations
Partner of choice
•Company responsibility for
unforeseen consequences
• Advocacy tools,
accountability tools, and
community capacity to hold
company accountable for
unforeseen consequences
Expansion
Divestment
•Environmental restoration
•Sustainable livelihoods
•Transfer of assets
• Participatory sustainability
planning and budgeting
• Citizen report card
•ESIA
Feasibility •Sourcing
• Co-identification of issues and indicators
• Co-target setting: hiring, sourcing, training
• Roles responsibilities agreements
• Closure planning
• Information sharing
• Local skills training programs
• Contract and concessions negotiations
Construction •Employment and training
Operations
•Employment and training
•Sourcing and procurement
• Co-budgeting
• Support community forums
• Company scorecard
• Evaluation
• Citizen report card
•Sourcing and procurement
•Infrastructure access
• Community monitoring
• Community reviews
• Good neighbor agreements
• Suggestion box
• Interest group committees and forums
• Community scorecard
Co-monitoring, measurement and verification
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Applying tools to case examples
• What is the priority?
• Which tool or tools would best address the priority?
• How would it work?
• At which points in the project cycle might it be
useful?
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Discussion questions
• Which tools / mechanisms might be useful in your
context?
• At which stages in the project cycle?
• What are the benefits and risks at each stage?
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Participatory planning and
monitoring
Session 3
Key focus areas, challenges and
success factors
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Critical focus areas
1.
2.
3.
4.
5.
Employment / hiring locally and training
Sourcing and procurement / supply chain
Intra-household dynamics and the family
Access to infrastructure
Environment
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Case example exercise
• What factors might promote success or limit impact?
• How viable might this mechanism be in your context?
• What might the benefits and risks be in your context?
• How could it be modified / adapted to better fit your
context?
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Challenges and success factors
• Understanding the many actors
• Multiple realities
• Power relations and equity participation
• Bias towards science
• Trust
• Style of communication
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Possible diagnostic questions
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•
•
•
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What stage of the cycle is the project in?
How robust are local governance institutions?
How organised is civil society?
How cohesive is the local community?
How high is standard of living in local community?
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Exercise
1.
2.
3.
4.
5.
Conduct preliminary diagnostic for particular
district or region
Select candidate PPM mechanism
Design basic strategy for introducing mechanism
Assess risks
Develop key performance indicators
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Participatory planning and
monitoring
Session 4
Understanding diverse perspectives
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Multiple actors in the
extractives context
Local-Global Interactions
Local
Media,
internet
State
company
Partner
Corporations
Operating
company
Federal
Ministry
Local
businesses
Economic
Local
government
Other individuals
Donor
Community
Financing
institutions
Society Environment
Local
NGOs
Intl media,
bloggers
Internatl
Stakeholders
Community
people
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