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	Unfortunately, relying on companies to do ''do the right thing'' is not enough by Global Witness & agencies   February 2012   Oil companies lobbying for less transparency.   More transparency is needed in the oil, gas and mining industries to prevent the international scramble for Africa’s natural resources from fuelling still deeper corruption and instability, according to a new report from Global Witness.   Based on investigations in Angola and Nigeria, Rigged? highlights a risk that complex corporate deals for accessing natural resources could be used corruptly to benefit vested interests in these countries. The report also points to major concerns over opaque sales of mining assets in the Democratic Republic of Congo to offshore companies.   “Many resource-rich countries in Africa have suffered deeply from corruption, conflict and unfair foreign exploitation,” said Gavin Hayman, Director of Campaigns at Global Witness. “Their citizens have a right to know how oil and mineral deals are being done, who is taking part in these deals and where the money is going.”   Recent years have seen a big increase in public disclosure of revenue payments to governments from the extractive industries. But that positive trend has been cast into doubt as international oil companies threaten legal action in the U.S to stop the Securities Exchange Commission implementing strong transparency rules. Oil companies are also lobbying to water down plans for similar rules in the European Union. Despite ‘big oil’ calling for a global ‘level playing field’, it appears to be fervently undermining efforts to create just that – a new global standard for transparency of revenue payments.   The new report points to a corruption risk that small and obscure companies in Angola and Nigeria could act as fronts for government officials or their allies, in resource deals that often involve investments from major international companies. The report finds that:   In Angola, several small companies which have won access to the oil sector – sometimes as partners of Western oil firms – do not identify their ultimate owners or are owned by people with the same names as government officials.   In Nigeria, valuable stakes in oil blocks ended up with obscure companies, one apparently controlled by a senator and another by a businessman close to the country’s then-head of state.   Additionally, in the DRC: The state mining company Gecamines sold stakes in four major mines to opaque offshore companies, at what appears to be a fraction of their value, according to most reported commercial estimates.   Global Witness is calling for:   1. The commissioners of the SEC in the United States to pass final rules that meet the intent of the Dodd Frank law, requiring companies to publish what they pay to governments for each project that they operate in the oil, gas and mining industries without exemptions.   2. Europe, China and other jurisdictions to pass strong laws requiring companies to publish what they pay to governments for each project that they operate in the oil, gas and mining industries.   3. International oil and mining companies to stop lobbying to undermine transparency laws while claiming to be in favour of transparency.   4. Full disclosure of the beneficial ownership of companies bidding for extractive rights to become an international norm via such mechanisms as the Extractive Industries Transparency Initiative and the domestic laws of resource-rich countries in Africa.   A full copy of the report can be found at http://www.globalwitness.org/library/rigged-scramble-africas-oil-gas-and-minerals   Jan 2012   The perils of doing business without community consent, by James Ensor. (Oxfam)   The recent decision over by Indonesia to revoke the gold mining exploration permit of Australian Arc Exploration (ARX) due to violent community protests demonstrates the perils of doing business without a social licence to operate.   Whilst Oxfam cannot pass judgment on the Arc Exploration case, it''s clear that communities held grave concerns that the proposed mine would threaten forests and water supplies. It is tragic that this has resulted in loss of life.   A social licence to operate is gaining informed consent – without intimidation or coercion - from communities affected by a proposed mine, well before the heavy machinery rolls into town.   As Australian mining and exploration companies increase their activities in resource-rich, developing countries, there is growing societal and investor expectation that they will secure the consent of landowners, respect human rights, conduct operations with a high level of transparency and ensure communities get a fair share of their resource wealth.   But all too often, consultation with communities is mistaken for actual consent to commence digging.   The Australian debate between farmers and miners generated by coal seam gas extraction is but one example of the worldwide phenomenon of growing competition for scarce land and water resources driving conflict. Responsible mining by Australian companies has never been more important, and can also reduce the risks of conflict and corruption.   Clearly, the mining industry, government and NGOs should increasingly work together to ensure that communities that are directly affected by mining operations are part of decision-making processes and benefit from the economic wealth generated by mining. This is vital to reduce the risks of conflict, as seen in Indonesia last week.   The Extractive Industry Transparency Initiative (EITI) is a global standard for managing revenue from natural resources that requires companies to publish what they pay in taxes, royalties and other payments to governments, and for governments to publish what they receive. Ideally, the two should add up. It provides an opportunity for communities hold their governments to account for expenditure in essential services such as schools and hospitals.   Indonesia has announced it will become an EITI implementing country. Regionally, there is greater attention on business and human rights. The ARX example is not the first time the National Commission on Human Rights (Indonesia) has investigated the activities of Australian mining companies.   In January 2011, the Philippines'' Human Rights Commission advised the Philippine Government to consider withdrawing OceanaGold Ltd''s rights to a mining project because the Australian miner had violated rights of indigenous people, through forced demolition of houses, insufficient compensation, and harassment and intimidation. Unfortunately, relying on companies to do ''do the right thing'' is not enough.   30th December 2011   UN report calls for action to clean up Congo’s minerals trade and end impunity.   Governments and companies must redouble their efforts to implement international supply chain control standards aimed at ending the trade in conflict minerals, a new UN report shows.   In a report published today, the UN Group of Experts on the Democratic Republic of Congo (DRC) notes positive impacts where companies are implementing supply chain controls, known as due diligence, in more stable areas. These include improvements in mining sector governance and a rise in mineral production and exports.   However while international due diligence standards for the mineral trade were announced by the UN and OECD a year ago, and some companies have taken steps to meet them, implementation by many firms dealing in Congolese minerals is still absent. This lack of supply chain controls is allowing militias and criminal networks in the Congolese army to finance themselves via the gold trade in particular.   “The pathway to a clean minerals trade that excludes human rights abusers and benefits the people of eastern Congo has been clear for over a year,” said Sophia Pickles, Campaigner at Global Witness. “It is critical that businesses follow the agreed international guidelines and become part of the solution to the nexus of minerals and violence in the region. Governments of countries that trade or use minerals must implement the recommendation of this report that they incorporate these due diligence standards into their own national laws.”   Many Group of Experts conclusions match the findings of a series of Global Witness’s field visits during 2011, not least regarding the role of certain Congo-based mineral exporters who have been purchasing minerals from areas where armed groups operate.   These activities breach UN sanctions, as well as a regulation issued by the Government of DRC in September, which requires traders and exporters operating in the DRC to adhere to OECD due diligence guidance, or face penalties.   As yet, however, no enforcement action has been taken against these firms. The UN Security Council has not imposed sanctions on any company involved in the conflict minerals trade for years, despite abundant evidence gathered by the Group of Experts, Global Witness and others.   Information gathered by the Group of Experts reveals how powerful former rebels are strengthening their grip over parts of Congo’s minerals trade. For example, Ex-CNDP commander General Bosco Ntaganda, indicted by the International Criminal Court for alleged war crimes, is orchestrating large-scale smuggling operations in full view of the Congolese authorities.   “It is vital that the incoming Congolese government tackles impunity in its military head-on and brings notorious human rights abusers to justice.” Visit the related web page
	Towards Human Resilience by UNDP: Perspectives United Nations Development Programme   Sustainable energy access critical for development in Africa writes Helen Clark.   Almost 45 per cent of those who lack access to energy live in Sub-Saharan Africa, making up 69 per cent of the region’s population. They number 585 million people. Seventy eight per cent of those living in Sub-Saharan Africa use traditional biomass for cooking and heating (650 million).   Energy needs extend well beyond having electricity available in homes. In Africa, where so many depend on rain-fed agriculture for their livelihood, expanding access to energy for irrigation, food production, and processing is vital. It can boost agricultural productivity and rural incomes, and empower women who make up a significant proportion of the continent’s farmers.   For UNDP, access to sustainable energy is critical for making societies more equitable and inclusive, and for encouraging green growth and sustainable development overall. We advocate for equity, inclusiveness, resilience, and sustainability to be the guiding principles for efforts to achieve universal energy access.   We recognize that different groups have different energy needs. Therefore, governments need to balance the financing of large-scale energy projects with support for the off-grid, decentralized energy solutions which will help meet the needs of the poorest and most marginalised people.   Dec 2011   Ongoing support is crucial for Somalia"s recovery, by Mark Bowden.   The arrival of the prolonged seasonal rains, coupled with a scaling up of humanitarian and early recovery operations in recent months, has improved the situation on the ground in southern Somalia, with three regions –Bay, Bakool and Lower Shabelle - being downgraded from famine status to that of humanitarian emergency.   This progress brings some hope. But the hard-won gains are still extremely fragile. Without ongoing assistance, they could be reversed.   Four million people remain in crisis in Somalia. Of these, 250,000 are at risk of dying. A further one million Somalis are living in refugee camps in neighbouring countries.   Fortunately, the humanitarian and development communities continue to show their commitment to responding to the crisis and improving the lives of Somali men, women and children.   Yet we still face significant challenges, as demonstrated by the recent ban by the Al Shabaab group, of six UN agencies and 10 non-governmental organisations (NGOs) working in southern Somalia.   The progress we have made must be sustained, and we must be prepared for the long haul.   International support must continue at the same – or even an increased – level throughout 2012. On 13 December, we will launch the Consolidated Appeal Process (CAP) which outlines the planned humanitarian assistance programme in Somalia for 2012.   The programme aims to reduce malnutrition rates, prevent further internal and international displacement, and assist people who are already on the move or stranded. It includes 349 projects from 148 organizations, including NGOs and the UN, and is seeking USD 1.5 billion to respond to the most urgent life-saving needs of Somalis in crisis.   Resilience is a key theme within the 2012 CAP, under which the UN Development Programme (UNDP) will be strongly engaged with specific initiatives to reduce dependency on humanitarian assistance and ensure households can withstand future shocks.   UNDP will also continue its work in the areas of emergency income generation and infrastructure rebuilding through cash for work initiatives.   Through our support to the establishment of rule of law, UNDP will support activities focused on the protection of vulnerable groups, particularly in the capital.   There will always be challenges to the provision of assistance to Somalia, and 2012 will be no exception. But Somalia cannot be allowed to fall off the international humanitarian and development agenda at this crucial time.   * Mark Bowden, U.N. Humanitarian Coordinator for Somalia.   October 2011   Towards Human Resilience: Sustaining MDG Progress in an Age of Economic Uncertainty.   The recent global economic crisis has reinforced significant concerns about the impact of financial and economic shocks on human development. The increasing frequency of such shocks raises important questions about their systemic character and the ability of developing countries to withstand the most damaging and lasting impacts of economic uncertainty.   Indeed, vulnerability to macro-level shocks has the potential of significantly slowing progress towards MDGs and other development goals that have taken developing countries many years to achieve. This report addresses essential questions about economic vulnerability and resilience.   Most significantly, it explores the following: How do macro-economic crises affect the world’s most vulnerable economies? What structural characteristics make some economies more susceptible to the harmful effects of such shocks? And what policies can help developing economies build resilience in the face of unpredictable economic change globally?   In doing so, it identifies key structural determinants that shape how countries experience and adapt to economic and financial shocks while considering policies and practices that minimize susceptibility.   Rising global inequalities are a unique driver of vulnerability in that they are both a cause and effect of the crisis itself.   Rising income inequalities create the necessary conditions for a vicious cycle, whereby increasing inequalities contribute to increasing the frequency and volatility of financial crises and financial crises further worsen income inequality.   Indeed, income inequalities have surged in advanced economies since the 1980s and this trend is closely corroborated with the increase in the incidence of financial crises that have rocked the global economy over the same period.   Moreover, in many developing countries too, income inequalities have been rising sharply since the 1990s, which has similarly been strongly associated with the increase in the incidence of domestic financial crises.   Income (and wealth) inequality contributes to financial instability through several interrelated channels: generally, a rise in income inequality reduces the purchasing power of middle- and low-income households, creating a tendency toward reduced levels of aggregate effective demand.   Moreover, the search for highreturn investments by those who benefit from the increase in inequalities leads to the emergence of asset bubbles.   Thus, rising inequalities fuel financial instability because they create a political environment whereby pro-cyclical investment policies (such as poor regulation and loose monetary policy) are more likely to be implemented in order to avoid political instability and lower economic growth.   Rising global inequalities are a unique driver of vulnerability in that they are both a cause and effect of the crisis itself.   Even more troubling is the fact that the persistence of inequalities at high levels in many developing countries has made it more difficult to reduce poverty.   This relationship appears to be especially pronounced in countries where a large part of the population is trapped in chronic poverty.   Moreover, high inequalities also reduce the likelihood that policies fostering inclusive growth and human development will be delivered and implemented.   For instance, richer groups may allocate public funds for their own interests rather than for those of the country.   And where institutions of government are weak, rising inequality can exacerbate the problem of creating and maintaining accountable government, thereby increasing the probability of the adoption of policies that inhibit growth and poverty reduction.   http://www.undp.org/content/dam/undp/library/Poverty%20Reduction/Inclusive%20development/Towards%20Human%20Resilience/Towards_SustainingMDGProgress_Overview.pdf Visit the related web page
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