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Oecd mining regions preconference for web

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OECD Mining regions & cities project

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Oecd mining regions preconference for web

  1. 1. OECD MINING REGIONS AND CITIES PROJECT Centre for Entrepreneurship, SMEs, Regions and Cities Organisation for Economic Cooperation and Development
  2. 2. • The OECD provides an international forum for governments to work together to share experiences and seek solutions to common problems – it has 36 member countries, and also works closely with a number of partner, accession and non-member countries • We also work with representatives of industry and labour through advisory committees, and are actively engaged with civil society organisations. • A strength of the OECD is the capacity for governments to learn from each other through peer review (whereby each country’s policy in a particular area is examined by fellow members on an equal basis). Our work is supported by data and engagement with stakeholders. • The OECD is overseen by various Committees and working parties, which are made up of delegates from member countries, and non-member countries which are also invited to participate • The Regional Development Policy Committee (RDPC) was established in 1999 and oversees work by the OECD Secretariat in regards to policies related to regions, rural areas and cities (see - http://www.oecd.org/cfe/regional-policy/regionaldevelopment.htm) 2 Organisation for Economic Cooperation and Development (OECD)
  3. 3. • Issue that affects virtually all OECD member countries – mining of minerals and metals, extraction of coal, oil and gas, and downstream production (investment, production, and decline/ transition) • Challenges associated with mining and extractive activities are amplified at the local and regional scale for example conflicts with other land users, population changes and impacts on housing markets and public services, and structural adjustment and transition costs • Policies related to mining tend to be shaped at the national level with a sectoral focus - trade and fiscal settings, concession and permitting processes, local content – integration with local and regional development strategies can be weak • This centralised approach makes it difficult to manage the territorial impacts of mining, exacerbates challenges and tensions, and leads to missed opportunities and benefits – resulting in problems such as difficulties in securing and sustaining social license to operate 3 Motivation for this work from the OECD Regional Development Policy Committee (RDPC)
  4. 4. Summary of findings: • Mining is spatially concentrated, often in low density economies – linkages with local economies vary considerably • Strong productivity performance coupled with volatility in growth, inequalities, and local dutch disease effects • Place-based approaches are needed to address these issues – land use and housing, supply of local skills and competencies, and linking local SMEs to mining value chains • Importance of multi-level governance - decentralisation and alignment with revenues and institutional capacities at a sub-national level to support integration of mining with regional development 4 Mining and extractive industries has been a topic of interest for OECD Work
  5. 5. 5 Mining and extractive activities are spatially concentrated 0 1 2 3 4 5 6 7 8 9 Locational quotient Regional specialisation in industry* (employment), select OECD countries Source: OECD Regional Database. *Industry category in this chart includes mining and extractive activities, energy and water. The locational quotient (LQ) for is the ratio between the sector weight in employment for the region, and the weight of the same sector in national employment. A value above 1 implies that the region is more specialised in that sector than the rest of the economy. LQ scores for Sweden and Finland are 2012, and for other countries 2014.
  6. 6. 6 Coping with changes in external markets and volatility in regional growth performance GDP growth index, select OECD countries and regions, 2001-2014 (2001 = 100) Source: OECD Regional Database. *25 regions across Australia, Canada, Hungary, Finland, Sweden, the United States. Regions with a locational quotient higher than 2 were included in the sample. Standard deviation of difference in GDP growth (2001-2011) for a larger sample of OECD regions specialised in mining was 28.08 compared to 13.08 for the national level*. 100 110 120 130 140 150 160 170 180 190 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Canada Newfoundland and Labrador Sweden Norrbottens County United States Wyoming
  7. 7. Key issues Examples Localised environmental externalities Impacts on water quality and availability, run-off and emissions, dust and noise Conflicts with other land users Residents, food producers, tourism operators, and Indigenous peoples Innovation and value- chains Adapting production techniques to local environment conditions, local procurement and supply chain opportunities Local workforce Skills mismatches, access to air services, temporary accommodation and housing, amenities and public services Regional infrastructure networks Bottlenecks in existing transport, energy and communications networks, opportunities for investment and shared use Mining closure and transition Environmental remediation, localised transition and structural adjustment costs 7 Mining is a global business and matter of national interest – but regional and local issues matter
  8. 8. 8 Objectives of the project 1. Develop tool-box with recommendations and global evidence for regional development in a mining and extractives industry context for the mining industry, national and sub-national governments, and non-government organisations to cooperate on addressing shared challenges. 2. Produce a series of case studies that deliver regional specific recommendations and implementation support, and a tool-kit (benchmarking and guidance, indicators and data, and best practices) to support the implementation of better regional development policies in a mining and extractives context across countries 3. Develop a global platform for mining regions and cities through events and peer- review that enable knowledge sharing, advocacy and dialogue between public/private sectors and local communities on better policies to enhance regional productivity and wellbeing.
  9. 9. Productivity, jobs and economic diversification - Policies that enable the development of the mining industry, that support productivity and also strengthen the supply chain linkages around mining activities and support economic diversification efforts. Quality of life and wellbeing - Policies that enhance quality of life and address inclusive growth and well-being challenges that affect regions and cities with a high degree of dependency on mining and extractive industries. Sub-national governance and fiscal arrangements - Sub-national governance and fiscal arrangements that address the complex relationships between national and sub-national governments, the mining industry and community stakeholders in relation to issues of economic development and wellbeing. 9 Priority themes that will be addressed by this project 1 2 3
  10. 10. Events and Knowledge Sharing Activities : • OECD meetings on Mining Regions and their Cities (1 to 2 per year) to discuss OECD findings, share and identify good practices and promote knowledge-sharing • Policy Workshops – at existing mining conferences to test analysis and recommendations, and mobilise private sector input and support. • OECD missions (as part of regional case studies) with peer reviewers (public and private representatives from other mining regions and cities), experts to gather data exchange experiences of best practices involving local stakeholders, experts and peer reviewers Case-Studies and Thematic Work: • Published proceedings from these events that identify good practice actions to enhance the productivity and wellbeing of mining regions and cities, and priority areas for future cooperation • Regional case studies that deliver an in-depth analysis, assessment and recommendations of a mining region and/or city in a national and global context, and also provide a mechanism to monitor and support implementation • Thematic report that will synthesise analysis from across countries and develop a tool- kit containing guidelines, indicators, and good practices about integrating mining and extractive industries, and regional development 10 Project deliverables
  11. 11. 11 Building a global community of mining regions and cities Events Thematic Work Pilbara, Western Australia, Australia (June) 2017 2018 2019 2020 2021 Antofagasta, Chile Darwin, Northern Territory, Australia Skellefteå, Västerbotten, Sweden (June) TBC – final event in Latin America Greater Sudbury, Ontario, Canada (October) North Karelia, Finland Antofagasta, Chile Other case studies Västerbotten & Norrbotten, Sweden Northern Territory, Australia Production of final tool-kit/ thematic report Thematic/ statistical pillar Achievements so far Next steps (TBC)
  12. 12. THANK YOU FOR YOUR ATTENTION CHRIS.MCDONALD@OECD.ORG WWW.OECD.ORG/CFE/REGIONAL-POLICY/MINING- REGIONS.HTM 12

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