Fifth Meeting of the PD-NR, 2-3-4 December 2015
Under the co-chairmanship of Chile, Kazakhstan, Korea, Liberia, Norway and Peru, twenty-one government delegations from Africa, Asia, Europe, and Latin America, as well as representatives from ten major firms and industry associations and twenty-one civil society organisations and think tanks convened at the OECD on 2-3-4 December 2015 for the Fifth Plenary Meeting of the Policy Dialogue on Natural Resource Development. The African Development Bank’s Legal Support Facility and Natural Resource Center, the African Union Commission, the Commonwealth Secretariat, the European Union, the New Partnership for Africa’ Development (NEPAD), the UN Conference on Trade and Development (UNCTAD), the UN Development Programme (UNDP), the UN Economic Commission for Africa’s Mineral Development Centre (AMDC), and the World Bank were also in attendance. High-level participants included the Minister of Mining and Geology of the Republic of Guinea, H.E. Mr Kerfalla Yansané, the Minister of Mines of the Republic of Mali, H.E. Dr Boubou Cissé, and the Commissioner on Trade and Industry of the African Union Commission, H.E. Mrs Fatima Haram Acyl. The Chair of the Governing Board of the OECD Development Centre, H.E. Ambassador Pierre Duquesne, welcomed participants on 2 and 3 December.
Work Stream 1 – Shared value creation and local development
Participants endorsed in principle (pending minor drafting suggestions) the Operational Framework on Public-Private Collaboration for Optimising Shared Value Creation and Local Development, emphasising the added value of the consultative process which resulted in a level playing field for structured and systematic engagement between governments and industry to fully reap and share the benefits of non-renewable natural resources. The Framework offers concrete options for action based on real experience and available knowledge. Participants recognised that countries can apply that knowledge to inform their own policy choices and tailored approaches to drive their own development priorities, as shown by planned pilot studies in Ghana and possibly Tanzania in support of the development of Country Mining Visions. The Framework can further be used to leverage public-private partnerships to support the implementation of the SDGs, including through the development of a Compendium of Practices to show concrete examples of how public-private collaboration can work in practice.
Work Stream 2 – Revenue Spending and Natural Resource Funds
Participating countries endorsed the lessons learned in the Comparative Analysis on the Performance of Stabilisation Funds and Investment Options. Participants agreed on the merit of continuing the dialogue on natural resource funds and revenue spending to address specific demands from resource-rich emerging and developing countries, broadly differing from those of developed economies. Participants are expected to identify suitable contacts and submit country reports at the next Plenary Meeting to start building a common knowledge base feeding into future evidence-based cross-country analysis.
Work Stream 3 – Getting better deals
Under the joint auspices of the G7 CONNEX Initiative and the OECD Policy Dialogue, governments, industry, support providers and civil society discussed how to get good contracts and what makes a good deal in the first place. While many governments continue to struggle with the dilemma of “buying or investing in capacity”, participants stressed that “flying-in/flying-out” support can only work as part of a more comprehensive approach. Alternative support models may take the form of “learning by doing”, through exposure to real negotiations. Stakeholders emphasised the importance for governments to develop a clear strategy to know what to do with their natural resources. The need for long-term assistance, coherence and coordination among service providers as well as multi-disciplinary teams that include both national and international expertise was also emphasised. Going forward, the CONNEX Negotiation Support Forum component of the Policy Dialogue will build a common knowledge base and develop a first set of good practices by the end of 2016. The methodological tools under development by the OECD Tax and Development Programme to assist tax authorities in verifying mineral products prices in transactions between related parties was further welcomed to reduce asymmetry of information and improve government capacity for contract negotiation.
Work Stream 4 – Detecting Corruption Risks in Extractives
Participants endorsed the Typology on Corruption Risks in Extractives commending its innovative and pragmatic nature focused on incentives as measures that could induce voluntary change in behaviour, by putting a cost on corruption and help make it less attractive. Participants also offered suggestions to further improve the presentation of the work prior to its publication in Q1 2016. Industry and civil society representatives provided examples on how this work is already being used as a benchmarking tool. For example, one big oil company is customising it into a user-friendly guide for all compliance officers worldwide while a leading anti-corruption organisation is distributing it to all its country offices. Participants welcomed the willingness of regional partner organisations to adapt the Typology for possible integration into existing methodological tools to carry out sector-specific integrity scans or peer-reviews, such as the African Peer Review Mechanisms. Moving forward, efforts will focus on dissemination of this work to increase its uptake among target audiences.
Session 1B - How to pilot the Operational Framework at country level?
Country Reviews on Resource-based Value Creation (OECD) by Dr Lahra Liberti, Senior Advisor, OECD Development Centre
Session 1C - How to use the Policy Dialogue process to forge a public-private alliance for supporting the achievement of the Sustainable Development Goals (SDGs)?
Extractive Industries and the Sustainable Development Goals (UNDP) by Mr Casper Sonesson, Policy Advisor, Extractive Industries, Bureau for Policy and Programme Support, UNDP
Session 2 - Typology of Corruption Risks in Extractives with Mitigation Measures and Incentives
Typology of Corruption Risks in the Extractives Value Chain and Associated Mitigation Measures and Incentives by Dr Lahra Liberti, Senior Advisor, OECD Development Centre
Session 5 - Contract Negotiation Support: Perspectives from extractives industries
Resource Development Perspective by Mr John Hannagan, Chairman, Rusal Australia
Session 6 - What is a “good deal”?
What is a good deal by Christina Tah, Principal Attorney, Law Offices Christiana P. Tah and former Minister of Justice, Republic of Liberia
Supporting complex contract negotiations: Case study & G7+ broader agenda by Mr Marcus Manuel, Senior Research Associate, Overseas Development Institute (ODI)
Session 8 - Review of OECD and non-OECD methods to verify minerals prices in transactions between related parties
Current Tax Issues in Extractive Industries by Mr Dan Devlin, Senior Economist, Natural Resource Taxation, OECD Centre for Tax Policy and Administration