51407 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Social Development and Mining: Reducing Risk, Improving Governance and Contributing to Local Development When the price of commodities inevitably At the policy level, social development inputs rebounds in the future, mineral rich countries can help teams (and by extension their clients) will be presented with a major opportunity to develop participatory interventions which harness the power of mining revenues for bridge the gap between mining companies and sustainable development. However, mining communities. For example, Development operations present a variety of social risks at Policy Loans (DPLs) aimed at strengthening the national, regional and local levels ministries of mining must incorporate an including: loss of traditional livelihoods, understanding of social issues if they are to exposure to communicable diseases, successfully advance sustainable development. resettlement and in-migration (especially for Similarly, by designing and introducing social large and new mining developments), pressure accountability measures, teams can increase on local health and education services, the likelihood that mineral revenues will be negative gender-related impacts, rising food, used effectively at the local level. Boxes land and local transportation prices, throughout the document outline the deterioration of governance, human rights important role that Social Development abuse, and conflict resulting from poor access inputs play in the mining project cycle from to, and distribution of, mining-related jobs exploration to post-closure. and rents. With an overarching focus on managing social The primary audience for this note is World risks, benefit sharing, governance, and Bank staff working on mining operations. inclusion, Social Development specialists can However, the key lessons and insights will work with mining task teams to enhance their also be useful for other stakeholders ­ performance in four key areas: companies, governments, non-government organizations and community groups ­ whose 1. Managing the socio-political risks of aim is to minimize risk and enhance benefits mineral exploration and extraction: Social for communities and vulnerable groups development specialists can help teams : a) impacted by mining operations and related identify and enhance their understanding of infrastructure. the social risks that can impede investment and obstruct operational progress; and b) The World Bank has an important advisory identify and mitigate adverse impacts during role to play in helping governments overcome the construction, operation, closure and post the challenges associated with resource closure phases of mining projects. By extraction. While the Bank's contributions in defining the roles and responsibilities of the advising governments on regulatory and various social, women's and community supply side governance issues are well development groups and agencies at the recognized, much less attention has been paid national, provincial and local levels and how to the important contributions that the Bank they can best interface with mining can make on advising clients on the social and companies, social development specialists can governance aspects of mineral extraction. help reduce the socio-political risks of mining Indeed, given the social challenges associated development. with mineral extraction it is important that task teams are able to advise governments 2. Improving governance and reducing about potential mining investments from a corruption to promote sustainable social perspective from the earliest development: Social development can exploration activities and the very outset of improve governance and help fight corruption the design stage through to the post mine by enhancing the capacity of communities to closure phase. demand good governance. Community SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 1 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 leaders and members ­ both men and women excluded, and poor groups, b) target - need to know what resources are available, interventions to meet their priorities, and c) have a say in their allocation, and obtain the involve them in design and implementation of information they need to hold government measures to lower social costs and enhance accountable for delivering results.1 In community level impacts. The application of pursuing this agenda, social development the Bank's Social Safeguard Policies can also specialists can help promote transparency and help ensure that vulnerable groups, who are social accountability to ensure that mining among those most affected by mining investments contribute to sustainable projects, are protected and included in the development for all. development process. 3. Promoting inclusion of the most 4. Reducing risks in post conflict and vulnerable and protection of involuntarily potential conflict settings: Mining displaced and Indigenous Peoples: Special operations are often associated with conflict attention is generally needed to make sure that in many countries, especially in Africa. Social indigenous peoples, involuntarily displaced development specialists can help identify a) persons and other vulnerable groups are able the risks to mining operations stemming from to share in, and are not excluded from, the socio-political context, b) the way that improved access to mining-related mining operations impact conflict dynamics, employment and income. Social development and c) opportunities where mining operations helps to a) identify the needs of vulnerable, can contribute to promoting more cohesive societies. Stage of World Bank Project Cycle Operational Risk Identification Limited consultation, inadequate stakeholder mapping, incomplete social analysis Preparation Not incorporating social inputs into project DNA Appraisal Treating social aspects as a hurdle to overcome rather than an opportunity to enhance project impacts and sustainability. Negotiation/Approval Not including social development specialists in designing government commitments under the project Implementation Failure to build in the adaptability in project design necessary to respond to emerging social issues Evaluation Absence or insufficiency of participatory monitoring, evaluation and social accountability mechanisms 1 Though still evolving, the EITI ++ agenda seeks to support committed governments, notably in Africa, in implementing good policy and practice along the entire natural resources value chain, i.e. the entire natural resources development process. "The entire chain of managing extractive industry resources is important--from how access to those resources is granted, to monitoring operations, to collecting taxes, to sound macroeconomic management and distribution of revenues, and to spending resources effectively for sustainable growth and poverty reduction." Social development's participatory interventions can help generate the levels of social accountability and transparency which, in combination with the frameworks other components, are necessary to ensure that the EITI ++ agenda moves forward effectively. SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 2 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 DID YOU KNOW? Mining has a "gender bias" in that the bulk of the benefits accrue to men whereas the majority of the risks fall upon women and the children that they care for. As such, consulting with women's groups and supporting them to both identify the impacts of mining and design measures to improve benefits and reduce risks is a very powerful way of empowering women and enhancing their role in development. Community women do not need to be told what will be or can be done for them and to them by development professionals or mining company managers ­ rather women need to be given the information and opportunity to develop their own views and be given a seat at the table so that they can be transmit their needs to relevant decision makers. Contribution #1: Managing the communities receive an appropriate share of Socio-Political Risks Of Mineral mining-related income and benefits-social Exploration And Extraction development approaches can improve the cost-benefit ratios of mining development for Helping teams minimize and mitigate socio-political local communities. Social development can risks by identifying risks and developing participatory also help mitigate the negative distributional strategies to overcome them effects of extractive operations by identifying potential sources of political and social Challenges. Given that they generally involve tension and designing interventions to large resource transfers and cause overcome them (for example, when dealing considerable environmental and social with challenges associated with mine closures, upheaval, mining operations face increased the formation of shanty towns or identifying levels of socio-political risk. For example, at who the actual residents of the town are for the exploration stage there is a huge mismatch compensation purposes). Finally, social of interests between the priorities of development can design participatory exploration companies (that want to find consultation plans and promote stakeholder good prospects for development and keep the engagement to help ensure that interactions information as confidential as possible while between companies, communities and raising capital) and the communities that want government become more mutually beneficial. companies to be there for the long term (not "in and out") and for the company to share all Social Development Tools. One of the the exploration information they have primary tools for understanding operational obtained (not keep it confidential). Another risks is the Poverty and Social Impact major risk facing new mining developments is Analysis(PSIA) ­ which identifies the that shanty towns of newcomers attracted by distributional impact of policy reforms on the mine often develop, but these people different population groups and promotes a cannot find employment. Failure to public debate on policy trade-offs. A User's understand and address mining operations' Guide to Poverty and Social Impact Analysis and socio-political impacts can deter private sector the sourcebook, Tools for Institutional, Political investments because it can make projects and Social Analysis of Policy Reform, describe vulnerable to costly delays as well as causing many of these methods. Social analyses can mining development to cause as much harm also be used to inform the design of effective as good to local communities. Community Development Plans both for the community as a whole and for specific sub- Social Development Helps. By promoting groups (such as women) in order to mitigate inclusive, participatory and sustainable adverse impacts and manage risks. development- including helping to ensure that SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 3 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Overcoming Risks and Enhancing Sustainability Getting the Political Economy Right: The Use of in Mauritania's Mining Sector Social Analysis in the Romanian Mining Sector Mauritania's national mining company SNIM is The Mine Closure, Environmental and Socio- currently the primary provider of electricity and Economic Regeneration Project was designed to water services in the Nouadhibou-Zouerat provide continued assistance to mining sector mining corridor. However, the provision of restructuring and to strengthen efforts by the these services has been a major drain on the Government of Romania to comply with company's finances and resulted in widespread conditions for European Union accession. The consumer dissatisfaction. In order to remedy government of Romania expressed the need to these issues, the Government of Mauritania 1) continue the process of downsizing the proposed the transfer of water and electricity mining sector, which started in 1997 when services from SNIM to a professional utility 89,000 of the 171,000 workers left the sector on service provider. As part of the proposed a voluntary basis, and 2) reduce the high level of reforms, a Poverty and Social Impact subsidies to mining, which amounted to over Assessment was commissioned to (a) assess the USD150 million in 2003. Given that miners distributional impacts of the proposed transfer represent a major political constituency in of ancillary services on different social groups, Romania and that the closures threatened the with a particular focus on the poor; (b) engage livelihoods of people in surrounding key stakeholders in a debate about the social communities, the project had to address and economic gains, costs, and trade-offs of the stakeholders' concerns in order to progress different transfer options; and (c) analyze and smoothly. explore options to gain stakeholders support for implementing the preferred transfer option, Based on the results of the PSIA the Socio- thereby contributing to a more evidence based, Economic Regeneration Component of the inclusive and transparent decision making project scaled up the job creation activities, process. including fostering local conditions for economic growth and social regeneration. Given its After conducing extensive stakeholder significant impact on employment, the social consultations and analyzing the results of both component of the project has grown to 50 quantitative and qualitative research, the PSIA percent of the Bank's support for the mining concluded that the positive effects of reform sector. In addition to components that benefit outweighed its potential risks. First, SNIM's the entire community in the mining regions competitiveness will be strengthened and the (such as job placement and training schemes, company will be able to make new investments micro-credit, and community infrastructure in its core mining business again. Second, over projects), special small grants target women and time the new utility provider will play a youth, who represent vulnerable sub-population significant role in the overall development of groups. The mine closure component of the the Corridor, including the reduction of social project was implemented swiftly and inequalities in access to essential social services. community participation became essential to Third, the Municipalities could participate in the achieving sustainable results. The operation was new service delivery systems. Finally, and most one of only five bank-wide projects to receive a importantly, consumers will be able to access "highly satisfactory rating" from QAG for water and electricity services that are safe and supervision quality in FY05-06. reliable at prices that most can afford. SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 4 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Applying Contribution #1 to associated with the influx of construction The Mining Cycle workers and others seeking employment. · Exploration: Utilize participatory strategies · Operations: Monitor and evaluate the to bridge the gap between companies and impacts of the mine (both positive and communities; organize interventions to negative) on the community and the manage communities' expectations; progress in implementing the Community provide the community with voice in the Development Plan. Ensure that the exploration process. community builds its own capacity and does · Feasibility and Licensing: Undertake rapid not become unduly dependant on the Poverty and Social Impact Assessment mines. Support implementation of (PSIA) to identify both expected benefits Community Development Plan. Update and corresponding political and social risks, the Mine Closure Plan on a regular basis with a focus on the construction and during operational period and as closure operation phases; Identify and design approaches. About ten years before measures to mitigate negative impacts and expected mine closure, update the PSIA enhance positive impacts and scope out the and conduct social analyses to determine roles and responsibilities of key impacts of closure on local economy and stakeholders ­ companies, government and design mitigating measures to be included in community groups. Encourage key final Mine Closure Plan. stakeholders to consult together and · Closure: Ensure that social aspects of mine prepare a Community Development Plan, closure plan are well implemented, to which all three parties would make legally including the transfer of social assets from binding commitments. Make sure an initial the mining company to local government. Mine Closure Plan has been prepared that · Post-closure: Use updated PSIA results to covers community long run sustainability as inform the development of community well as environmental reclamations. and government based programs to · Construction: Support companies and support post-closure environmental and government in implementing measures to social interventions. mitigate negative impacts, especially those REMEMBER: In order to provide the information necessary to effectively mitigate socio-political risks, social analyses need to provide tangible and concrete recommendations based on consultations with a broad range of stakeholders (including women and other vulnerable groups). Contribution #2: Improving Governance by provincial or local governments, the national and Fighting Corruption to Promote government may have different development Sustainable Develpoment priorities than sub national governments in mining areas. Even where sub national Helping to enhance the management of mineral-related governments have a strong claim on mineral revenues in mining operations by increasing revenues, there is a danger of poor use or misuse, communities' demand for good governance including capture by local elites. As such, Challenges. Though mining operations typically transparency in terms of revenues generated and generate substantial revenues, the financial where they are allocated and strong demand-side resources generated by these operations often do participation in the monitoring and use of these not trickle down to people at the local level. First, resources are crucial for the achievement of resources are often allocated in a sub-optimal way broad based local level sustainable development. either because of poor government planning and Particularly important, but often overlooked, is implementation capabilities, differences in the ensuring that women are explicitly included in political influence of different regions of the this monitoring and planning process. country, corruption, or insufficient transparency. Moreover, since mineral wealth is usually Social Development Helps. By spurring the controlled by national governments rather than demand for good governance, social SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 5 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 development approaches such as Community corruption, elite capture and poor governance Driven Development (CDD) can help increase by increasing communities' awareness of the the likelihood that local governments will mineral-related revenues in local government's manage natural resource revenues effectively hands and providing them with tools which can and transparently. Community participation in help to ensure that these funds are used to managing resource revenues also exposes advance development objectives. DID YOU KNOW? The benefits that communities accrue through mining operations consist of (a) direct and indirect employment opportunities including spin off businesses; (b) community related social programs initiated by mining companies, including local trusts; and (c) direct transfers to local communities by the national government to support local services, infrastructure and employment (through micro-credit programs for example). However, it is important that development plans in mining communities are part of a longer term strategy aimed at harnessing the benefits of mining operations to stimulate non-mining development. If successful, this approach prevents over dependency of the local communities on the mining operation and reduces the long term risk that the community will collapse when the mine closes Social Development Tools. There are a wide Laying the Groundwork for Sustainable Mining range of community-level tools which have been in Sierra Leone used successfully in other sectors and can be very usefully applied to mining operations Despite its significant potential, Sierra Leone's including citizen report cards, community mining sector is typified by an unequal distribution scorecards, input tracking, participatory of benefits and impacts, which resulted in budgeting and independent budgeting analysis. widespread dissatisfaction among local communities regarding natural resource Strengthening Social Accountability to Improve development. In order to lay the groundwork for the Impact of Mining Royalties in Peru sustainable mining in the future, the Bank The MIM Initiative (acronym in Spanish for conducted a Strategic Environmental and Social "Improving Municipal Investment") is an IFC Impact Assessment (ESIA) to provide the sponsored project that helps civil society government with recommendations about how to organizations undertake a systematic monitoring ensure that mining effectively contributed to of mining royalties flows and municipal investment sustainable development. In addition to providing in selected municipalities in Peru. MIM aims at advice on how to proceed on technical issues and promoting greater social accountability to increase strengthen institutional capacity, the study the impact of royalties-financed local public attempted to develop a framework which would investment. In order to achieve this objective the allow local communities to participate in the project provides support to civil society planning and execution of resource development. organizations in selected municipalities so that The study recommended that in the short term they can undertake a systematic monitoring of the government of Sierra Leone implement a mining royalties flows and municipal investment. framework for consultation in large mining Civil society is then able to publicly disseminate the operations which would explicitly assign information and promote an open discussion in responsibility for social issues to different order to help people better understand how the stakeholder groups, establish a dispute resolution royalties are being used to advance municipal mechanism on social and environmental issues development priorities. After gathering that is affordable and accessible to communities, community input, civil society organizations promote stakeholder participation, and require provide feedback to Mayors about how the the results of the ESIA to be presented to population perceives their management of community representatives. investments. Adapted from: Wealth and Sustainability: The Environmental and Social Dimensions of the Mining Sector in Peru, World Bank (2005) SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 6 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Applying Contribution #2 · design measures for sharing benefits and To The Mining Cycle ensuring that they are used to meet the · Exploration: Assist communities to · most pressing developmental needs of the understand the role of exploration and to community, such as recurrent costs for avoid developing unrealistic expectations health facilities and schools (not just to that significant benefits will occur at the construct new physical infrastructure). Use exploration stage. the Community Development Plan, which · Feasibility and Licensing: Formulate plans to should provide a timeline through to post help the government and communities closure, to identify and develop spin off improve the management of natural resource businesses and measures to reduce over revenues with a high degree of transparency dependency on the mine. Take measures and participation. Build the capacity of the to ensure that communities' mining related community to understand and monitor income is not captured by elite groups community income. Ensure that banking or within the community. other services are available to help workers · Operations, Closure and Post-Closure: and their families keep income safe and Facilitate partnerships between civil design incentives for families to save part of society, companies, communities and the their income. government to enhance social · Construction and Operations: Encourage accountability by engaging in participatory government and community monitoring and evaluation efforts and representatives, including representatives other activities. of women's groups, to work together to REMEMBER: Interventions aimed at promoting the demand for good governance rarely work in isolation. Instead, they should be implemented simultaneously with supply-side initiatives to catalyze comprehensive change in the mining sector. Contribution #3: Promoting Inclusion of Social Development Helps. By promoting The Most Vulnerable Community inclusive and sustainable development, including Members And Indigenous Peoples and improving the share of an operation's benefits Protecting Involuntarily Displaced People which are specifically made available to otherwise excluded and vulnerable groups Helping to ensure that all members of mining affected (including women), social development communities-including women and children, indigenous approaches can reduce local tensions and people, displaced people and unemployed people- benefit opposition to mining operations while from mining operations. identifying their corresponding social impacts Challenges. Socially responsible mining can and risks. Moreover, social development lead to greater sustainability but the most approaches are often useful for addressing vulnerable are not always included. To achieve distributional problems common to many broad based social sustainability, operations mining operations including labor issues, health, need to a) shift toward providing broad based safety and HIV/AIDS. opportunities and a sustainable stream of benefits that is distributed widely throughout Furthermore, through the use of gender-aware the community and not just limited to the participatory strategies, social development leadership, land owners, the elite and those approaches can help ensure that the revenues getting employment during construction from extractive operations are used to improve and/or with the mine; and b) recognize and local communities' social and economic mitigate potential harm, especially for the conditions, operations take stakeholders' most vulnerable community members concerns about adverse environmental, health, including indigenous peoples, involuntarily safety and social concerns seriously, and that displaced people and women. vulnerable groups (women, disabled, youth) are SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 7 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 able to have a voice and equitably share in Social Development Tools. Social development project benefits. provides a variety of resources (such as the World Bank Involuntary Resettlement Sourcebook) to improve Finally, social development has expertise in the performance of mining operations. developing comprehensive resettlement Moreover, social analysis can be incorporated at frameworks aimed at mitigating and the very beginning of the project cycle to identify compensating people for the adverse vulnerable groups and inform the design of socioeconomic impacts caused by involuntary interventions aimed at ensuring that they displacement, providing them with legal and equitably benefit from mining operations. social support to obtain new property, and providing them with legal titles to land. Effective Attention to Resettlement Issues: The Laying the Groundwork for Regional Antamina Project in Peru Development in Madagascar After an independent audit demonstrated significant One of the poorest countries in the world, weaknesses in the company's resettlement policies, Madagascar is very rich in minerals and metals, the Compania Minera Antamina, in cooperation with having precious and base metals, iron ore, coal, the World Bank and other international experts, industrial minerals, construction materials, precious implemented a resettlement plan that has become a stones and hydrocarbons. The Anosy region, in the best practice standard in Peru. southern part of the country, is an extremely poor area which hosts a large limonite mining project First, the company collected baseline data which developed by QMM, a joint venture between Rio allowed it to determine the extent to which family Tinto (80%) and the State represented by OMNIS ties and reciprocity linkages contributed to families' (20%). The operation, which will start beginning of economic well being. Given that the study found that 2009, is expected to have significant upstream and this reciprocity constituted almost 80 percent of downstream effects on the surrounding economy, family income, the company was able to dedicate with high expectations for economic growth and increased attention to preserving economic social change. livelihoods by keeping these linkages intact during the resettlement process. In order to ensure that local population receives a share of the benefits, the Government supported by Second, the company contracted independent World Bank and CommDev, has been looking for a advisors to implement a community engagement mechanism to channel part of the royalties to strategy aimed at clarifying to communities that the communities in an equitable, sustainable, transparent best mechanism for land purchasing and and effective way. Current efforts have focused on resettlement was a land-for-land exchange (as the creation of a regional Foundation dedicated to opposed to providing a cash payment) accompanied prioritizing the needs of the poorest households in by development projects. While providing a land for the Region in order to improve their health, land exchange may not be feasible in all education, and standard of living. Under this scheme, circumstances, the company's use of this strategy funds which cannot be absorbed immediately will be improved the sustainability of the resettlement effort saved to generate revenue and continue to produce and increased the community's trust in the company. income for the Region in the long run. The broad Finally, the company introduced a system for consultative process which was used to establish the evaluating when the displaced families were ready to foundation's governance structure in tandem with live without the help of the mine. In order to develop the presence of strong social accountability principles this system, a group of experts designed a series of to rule its day-to-day operations will help ensure that indicators (food security, health, income generation) the Foundation accomplishes its objectives which could be used to monitor when families had achieved economic self-sufficiency (Peru thing page Adapted from: 115). http://www.commdev.org/section/projects/anosy_madagascar Adapted from: Wealth and Sustainability: The Environmental and Social Dimensions of the Mining Sector in Peru, World Bank (2005) SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 8 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Applying Contribution #3 those that are involuntarily displaced To The Mining Cycle includes alternative sources of income and · Exploration: Ensure that women's groups food as well as residences. Monitor the and other vulnerable groups including the implementation of Community unemployed and subsistence agricultural Development Plan to ensure that poor, workers are included in consultations. excluded and vulnerable people (including Ensure that exploration does not take women and the families they care for) are place on protected lands and provide able to share in the benefits of construction special support to indigenous groups and are not unduly disadvantaged. impacted by exploration. . · Operations: Monitor and evaluate both the · Feasibility and Licensing: PSIA should be impacts of the mine (both positive and used to identify vulnerable and excluded negative) on the community and the people and identify opportunities for outcomes of the Community them to share equitably in mine-related Development Plan. Consult with benefits. Ensure that stakeholder representatives of the poorest and most consultation includes a wide range of vulnerable groups including indigenous community groups, including women's people to ensure that their rights and groups in particular. Ensure that the needs are being addressed in line with needs and interest of the poorest and plans and agreements. Ensure that most vulnerable are included in the dispute resolution mechanisms are in Community Development Plan and that place that are both affordable and there is a contractual or other legally accessible to communities. If this is not binding basis to ensure that their needs the case, intervene with the government and interest are met. and the mining company to get the · Construction: Ensure that the rights and situation corrected. needs of indigenous people are properly · Closure: Plan ahead so that government respected and their culture protected. services will be available to support the Ensure that compensation for those losing most vulnerable community members their ability to grow food or earn a living and during post-closure. REMEMBER: In order to maximize its effectiveness, the application of the Bank's safeguards policy should include specific consultations with vulnerable groups such as women, youth and indigenous people. Contribution #4: Maximizing Benefits clear understanding of the larger socio-political And Reducing Risks In Post-Conflict And context. Beyond these national level issues, Potential Conflict Settings mining also has the potential for conflicts with local communities, because mining involves Helping mining operations deliver results in conflict- both environmental and social/cultural risks prone regions by incorporating an understanding of conflict dynamics into project design. which can cause conflict at the local level unless properly managed and mitigated. There is an in- Challenges. Mining operations confront two built conflict as early as the exploration stage in distinct sets of risks in conflict and post-conflict that communities typically want full information settings. First, they face the threat that disclosure and commitments from the company operations will be disrupted because of rapidly while the exploration team wants to keep their changing conflict dynamics. Second, they have data confidential and avoid making to be concerned that mining operations have the commitments. How this is handled can set the potential to contribute to conflict escalation if tone for future interactions between companies they are perceived to support specific groups or and communities. by exacerbating conflict drivers such as regional imbalances. Even if the operation is not being Social Development Helps. First, while most implemented in a region with a previous history conflicts are much larger than mining per se in of conflict, task teams still need to develop a that they generally have a complex set of SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 9 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 underlying causes and often span many years, design interventions that can help promote social development teams can help mining task social cohesion and increase social capital in teams assess the risks to mining operations mining communities. stemming from the macro-level socio-political context. Second, social development teams can Social Development Tools. The Conflict help assess the way that mining operations can Analysis Framework can be used to develop an influence conflict dynamics, and the understanding of the social, economic and opportunities mining operations can capitalize institutional drivers of conflict at the country on to promote more cohesive, peaceful level in order to help task teams understand and societies. Third, social development teams can manage the risks and opportunities associated provide mining operations, which are often with conflict. This type of analysis can be highly geographically specific, with an conducted as a stand-alone exercise or as part of understanding of any actual or potential conflict a PSIA or country level social analysis. Social dynamics at the local and regional level. Fourth, analysis can also be used to identify causes of by facilitating appropriate community conflict at the community level and design participation, social development teams can help interventions to overcome these challenges. En(gendering) Success in the Mining Sector: Communities and Small-Scale Mining (CASM) The Case of PNG The Communities and Small-Scale Mining (CASM) Though they had been invited to consultations Network, whose secretariat is housed at the World before, women in Papua New Guinea are now Bank, is a global collaborative association between integrally involved shaping the dialogue about governments, communities, artisanal miners, donors mining issues in their country. It all began at and other professional partners with an interest in the conference in 2001, when women from local sector. The core functions of this global network are to communities, civil society, companies and the PNG create, develop, and disseminate knowledge on the government engaged in a series of conversations sector, to build networks and long-term partnerships, to organize global learning events, and also to facilitate with representatives of the World Bank and the projects. The network's ultimate goal is to improve the PNG Department of Mining concerning the livelihoods of artisanal and small-scale miners and challenges they experienced in having a voice affected communities worldwide. It does so through regarding mining issues. As a result of this dialogue, addressing the following themes: the project supported the organization of the first - Environment, esp. the reduction of mercury use Women and Mining Conference (in 2003) which - Child Labor resulted in the identification of actions to reduce - Government Policy, esp. formalization of the and mitigate the negative environmental and social sector impacts of mining on women and enhance the - Good Governance positive impacts of mining for women. The project - Health and Safety culminated in 2007 with the formulation of a five CASM has a strong focus on the social side of the year national plan for women in mining. There are mining sector. For example, it has created working eight key goals in the WIM National Plan covering groups to deal with issues of fair trade, gender, and the issues ranging from education and literacy to increasing conflicts between large scale and small scale increasing opportunities for women in economic mining operations. Moreover, the initiative tackles and political life and the institutional strengthening topics which play a crucial role in the sector such as of women's' associations. By paying attention to access to services, drug use, violence and criminality, gender issues, PNG has not only increased the security issues, sanitation, HIV / malaria, transparency, likelihood that the proceeds of mining will promote illegality etc. For instance, the network works closely with an environmental protection agency in Eastern development that is truly sustainable, but also Congo to integrate the goals of environmental created opportunities for promoting women's social protection with livelihoods support for small scale and economic empowerment on a broader scale. mining communities. Other examples include the network's support for consultative stakeholder processes to secure livelihoods for migratory ASM workers in Ghana, and working with women groups in the ASM sector in Uganda. SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 10 SO CI AL DEV ELOPMEN T HOW TO S ER IES | n o . 7 July 2009 Appying Contribution #4 communities and the government to To the Mining Cycle avoid or resolve conflicts during the · Exploration: Utilize participatory strategies operation phase: Identify and design to bridge the gap between companies and measures to mitigate negative impacts on communities. Organize interventions to the conflict environment, enhance manage communities' expectations and positive impacts and manage social and reduce conflict between exploration political risks teams and communities · Operations: Conduct social analyses to · Feasibility and Licensing: Use PSIA and/or ensure that conflicts are being reduced the Conflict Analysis Framework to (and not increased) and determine identify positive and negative impacts of impacts of closure on local economy and construction and operation phases and vulnerable populations their corresponding political and social · Closure and Post-Closure: Pay special risks so that conflicts can be reduced and attention to potential sources of conflict not exacerbated and take measures to mitigate them. · Construction: Facilitate partnerships between civil society, companies, This note was prepared and authored by David Post. The The Social Development Department presents the author would like to thank Caroline Kende-Robb, Elena "How to Series", a set of occasional papers aimed at Correa, Daniel Owen, Danielle Christophe, Adriana Eftimie synthesizing social development research and and most especially John Strongman.. operational best practices in a format which is easily accessible to development practitioners. For more information about the Series, visit us online at www.worldbank.org/socialdevelopment or contact us at socialdevelopment@worldbank.org SOCIAL DEVELOPMENT DEPARTMENT www.worldbank.org/socialdevelopment 11