8th Annual CASM Conference Brasilia, October 2008

1. Exploring
Synergies
from
Partnership
The
Case
of
the
EITI
and
Cer0fied
Trading
Chains
in
Mineral
Produc0on
(CTC)
Nicholas
Garre8
8th
Annual
CASM
Conference
Brasilia,
October
2008

2. Partnership
“Partnership
is
criEcal
to
effecEve
problem
solving
of
the
challenges
facing
business
and
the
developing
world.
Simply
put,
the
issues
are
too
complex
and
interdependent,
and
the
resources
and
legiEmacy
for
tackling
them
too
dispersed
between
sectors,
for
any
one
group
to
have
all
the
soluEons
alone.”
(Source:
Jane
Nelson,
Director
of
the
Corporate
Social
Responsibility
IniEaEve
at
the
Kennedy
School
of
Government,
Harvard
University)
©
Nicholas
Garre8,
2008

3. Partnership
-­‐
Caveats
• Not
an
answer
to
every
problem
• Not
easy
to
establish,
sustain
and
scale
up
• Face
strategic,
policy-­‐related
challenges
• OperaEonal
Obstacles
©
Nicholas
Garre8,
2008
Think first! Does it make sense?

4. Partnership
-­‐
Benefits
• Harness
the
skills
and
resources
of
different
sectors
and
actors
• Improve
reach
and
impact
• Achieve
greater
efficiency
• Increase
legiEmacy
©
Nicholas
Garre8,
2008
More effective and stronger
development solutions

5. We support
transparency in
natural resources
sectors!
©
Nicholas
Garre8,
Resource
ConsulEng
Services
Limited,
2008
We support
transparency in
natural resources
sectors!
Let’s explore
potential
synergies and
scope for
partnership!

6. Exploring
Synergies
from
Partnership
The
EITI
and
CTC
–
why?
• Both
iniEaEves:
• provide
incenEves
for
companies
and
governments
to
support
good
natural
resource
governance
in
host
countries
• have
strong
emphasis
on
transparency
• are
of
strategic
importance
to
German
development
cooperaEon
• The
EITI:
• already
enjoys
widespread
poliEcal
support
• welcomes
debate
on
possible
future
avenues
to
further
transparency,
also
in
ASM
• CTC:
• requires
more
widely
spread
poliEcal
support
• seeks
legiEmacy
• is
learning
©
Nicholas
Garre8,
2008

7. What
is
CTC
• Step
by
step
move
from
CSR
system
of
governance
and
assurance
towards
third
party
verificaEon
to
possibly
government
regulaEons
• Phased
approach
from
voluntary
towards
mandatory
assurance
of
social
and
environmental
performance
• Drab
Standards
have
been
developed
• Not
a
final
product,
planning
&
consultaEon
are
ongoing
• Rwanda
Pilot
to
start
2009
• DRC
concept
developed
2009
©
Nicholas
Garre8,
2008

8. CTC
IntervenEon
in
the
Value
Chain
• IntervenEon
depends
on
depth
of
implementaEon
©
Nicholas
Garre8,
2008

9. ©
Nicholas
Garre8,
2008

10. ©
Nicholas
Garre8,
2008

11. ©
Nicholas
Garre8,
2008

12. ©
Nicholas
Garre8,
2008

13. The
EITI
• The
EITI
– Success
through
narrow
focus
on
reconciliaEon
of
payments
–
ONE
aspect
of
the
value
chain
only!!
©
Nicholas
Garre8,
2008

14. The
EITI
-­‐
Related
Concepts
• The
“EITI
+
concept”
(applied
in
oil
and
gas
in
Nigeria)
• ReconciliaEon
of
Payments
• Capacity
Building
• Financial
Audits
of
Companies
and
Government
• Process
Audits
• Public
InformaEon
Campaigns
©
Nicholas
Garre8,
2008

15. The
EITI
-­‐
Related
Concepts
• The
“EITI
++
concept”
(World
Bank
and
others)
– IntervenEon
along
the
enEre
value
chain
©
Nicholas
Garre8,
2008

16. The
EITI
-­‐
Related
Concepts
• “EITI
in
ASM
concept”
• History:
• UnEl
2007:
sporadic
discussions
within
DFID
• 2007:
EITI
in
ASM
report
• ImperaEve
to
disEnguish
between
the
AM
and
SSM
value
chains
• The
AM
Value
Chain:
©
Nicholas
Garre8,
2008

17. The
EITI
-­‐
Related
Concepts
• “EITI
in
ASM
concept”
• The
SSM
Value
Chain:
©
Nicholas
Garre8,
2008

18. CTC
and
the
EITI
–
Contact
Points
• Value
Chain
IntervenEon
Biggest
overlap
with
EITI
concepts,
parEcularly
“EITI
in
ASM”
CTC
has
wide
focus,
so
actual
overlap
depends
on
depth
of
implementaEon
of
any
of
the
EITI
concepts
©
Nicholas
Garre8,
2008

19. CTC
and
the
EITI
–
Contact
Points
• CTC
Standard
17:
“ImplemenEng
companies
are
required
to
meet
fiscal
obligaEons
required
by
host
government
law
and
publish
all
payments
made
to
government
in
accordance
with
the
standards
of
the
EITI”
©
Nicholas
Garre8,
2008
creates and enhances the governance structures required
for the implementation of the EITI and/or its related concepts
does not equate to EITI implementation in ASM

20. CTC
and
the
EITI
–
Partnership
• Synergies
vary
between
CTC
and
the
EITI
–
and
CTC
and
the
EITI
concepts
If
the
EITI
concepts
were
to
develop
further,
more
synergies
would
arise
and
partnership
could
be
explored
further
Significant
synergies
between
the
EITI
and
CTC
already
exist
-­‐
scope
for
collaboraEon
in
specific
areas.
©
Nicholas
Garre8,
2008

21. CTC
and
the
EITI
-­‐
Synergies
InternaEonal
• Mutual
Learning
• InternaEonal
Secretariat
LocaEon
• Shared
and/or
Co-­‐hosted
Conferences
• Formal
RepresentaEon
• Establishing
the
“EITI
in
ASM
concept”
NaEonal
• Enhancing
Government
Capacity
and
Control
FuncEons
• Finding
Civil
Society
Stakeholders
to
contribute
to
CTC
• Enhancing
Civil
Society
Capacity
• Building
Trust
and
Mutual
Knowledge
with
the
Private
Sector
• NaEonal
Level
Process
Management
• NaEonal
and
Sub-­‐NaEonal
Level
Learning
and
Trust
Building
• Data
Gathering
and
AudiEng
• InformaEon
Exchange
• Public
InformaEon
Campaigns
©
Nicholas
Garre8,
2008

22. Muito
Obrigado!
Download
the
corresponding
report
from:
www.resourceglobal.co.uk
For
further
details
email:
nicholasgarre8@resourceglobal.co.uk
©
Nicholas
Garre8,
2008