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Presentation by Mr. Antonio Pedro, Director United Nations Economic Commission for Africa (ECA), Sub-regional Office for Eastern Africa (SRO-EA).

Day 1 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 13 November 2013.

Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm

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  1. 1. Enablers and incentives for responsible mining and trade in the Great Lakes region: The case of gold and 3Ts A perspective by Antonio M.A. Pedro Director, UNECA Sub-regional Office for Eastern Africa, Kigali, Rwanda
  2. 2. To start with • We don’t have to reinvent the wheel: The ICGLR Mechanism (and its six tools) and the “Peace Security and Cooperation Framework for DRC and the Region” are a very good starting points: Focus should be on scaling-up interventions to maximise scale and impact • Peace will not happen without development and development will not happen without peace (Jim Yon Kin, Kampala, 24-5-2013) • There have been countless studies (e.g. COMESA on War Economies) on the nexus between NR and conflicts: They are very important body of knowledge which have clarified some of the foundational issues and informed the design of tools such as the Regional Initiative on Natural Resources (RINR), Dodd Frank Act, etc- This knowledge base should be shared and a community of practice established • Small steps matter: It is important to build on existing success cases at country level (Rwanda, DRC, etc)
  3. 3. To start with (2) • • • • • • • • • • ECA will render support to the formulation of the Business Plan for the ICGLR Regional Initiative against the Illegal Exploitation of Natural Resources (RINR). The BP will discuss/review: The evolving role of the ICGLR as an implementation body Donor coordination with the RINR Insufficient ownership by the ICGLR Secretariat – the initiative is strongly donor driven Certification or audit fatigue on the part of the various stakeholders due to the multiplicity of initiatives all carrying out surveys and audits Communication on the RINR in order to establish it as an internationally recognized certification process. The preliminary findings below will inform the review: -At a strategic level  The link between certification mechanisms and the ultimate goals of peace and development still needs to be reinforced as does the ICGLR’s role in achieving these ultimate goals; The political will to achieve compliance with the certification process and use this as a tool to eliminate conflict in the region still needs to be reinforced; The measures to be taken should a country be non-compliant are unclear; and The Dodd-Frank Act and its interpretation by downstream companies require urgent action on the part of the ICGLR countries to ensure that the region remains competitive in the world market for minerals.   -At an operational level   • • • There is a need to render the ICGLR database truly operational and available to member States as a tool; It is a joint responsibility of home and host nations: We welcome the Dodd Frank Act; and But, it is more important to domesticate international governance instruments in national policies, laws, regulations, and standards: The Domestic Accountability Argument (The African Peer Review Mechanism can support the establishment of solid social compacts)
  4. 4. Some basics: Address structural and sistemic issues • Any discussion on responsible mining and trade has to be rooted on a good understanding of the political economy of NR exploitation. To break the nexus between natural resources and looting of mineral wealth it is important to understand its root causes: rentier behaviour, political underdevelopment (when govts don’t need their taxpayers and can insulate themselves from their constituencies), the discourse of grievance (bad governance, mismanagement in the sector, flagrant corruption, economic collapse, politics of exclusion, regional imbalances, increased destitution and frustrated expectations), and economic drive (conflict is commercialised and privatised: the business of war)
  5. 5. The responses should include • Deepen understanding (through research) of the nexus of natural resources and conflict to develop adequate responses to challenges • Divulge and map existing initiatives to improve coherence and impact, and forge partnerships • Scale-up pressure on international companies to observe the highest corporate conduct: It is a joint responsibility of home and host countries • Contribute to capacity building and institutional strengthening to scale-up enforcement of rules and regulations • Document and expose mal practices, profile and sanction culprits
  6. 6. The responses should include (2) • Support policy dialogue and facilitate consensus building on emerging issues: The Country Mining Vision (CMV) project • Help develop laws and regulatory frameworks, benchmarks, codes of conduct, and other instruments to regulate investment, distribution of benefits, ownership, production, consumption, trade, etc • Render technical assistance to member States to design legal and regulatory frameworks that are more in tune with current societal needs
  7. 7. The responses should include (3) • Deploy resources and assistance to help countries mainstream natural resources development into poverty reduction strategies and other national development frameworks • Help government efforts to promote broad-based growth and development, and diversification of economies to reduce dependence on the natural resources sector: The AMV/AMDC is ready to support these effors in partnership with other stakeholders
  8. 8. The responses should include (5) • Promote discussions on natural resources and conflict in high-level fora: It should not be a taboo! • Advocate for more autonomy of oversight functions such as ombudsman, auditors general and parliamentary oversight committees • Promote regional integration (e.g. EAC framework for the development of transboundary natural resources) • Sharing of experiences and peer learning groups • Popularise and domesticate international governance instruments (e.g. the EITI) in national processes to build a culture of accountability and an internal appetite for good governance