The World Bank and the IFC - Mining Reform and the World Bank

full all chapter5 chapter6 chapter7 chapter8 chapter9

chapter4 chapter5 chapter6 chapter7 chapter8 chapter9

Transparency and Accountability

Policy, Legal and Contractual Framework

Sector Organization and Institutions

Fiscal Design and Administration

Revenue Management and Distribution

Sustainable Development

The World Bank and the International Finance Corporation, Mining Reform and the World Bank: Providing a Policy Framework for Development, (Washington D.C., United States of America: International Finance Corporation, 2003)

The focus of this paper is the role of the World Bank in enabling structural reform and establishing policy guidance for the mining industry in the context of globalization, thereby providing a new paradigm for global mining aimed at sustainable development.

The paper discusses World Bank policy guidance which has consisted of disseminating the international best practices of the mining industry, thereby contributing to the process of establishing policy responses to development issues in the mineral sector. The focus of mining reform, in turn, has been on stimulating greater private sector participation and on assisting in establishing solid mining legal frameworks coupled with developing and re-structuring public mining institutions in view of implementing development policies and attracting foreign investment.

As the mining impact on the local economy is directly proportionate to the environment, it is pointed out that environmental considerations should become mandatory elements in mining ventures as all the stakeholders involved in mining should balance their interests with the environmental goals of improving the levels of health, safety and well-being of communities. To that end, the World Bank assistance focuses on drafting environmental regulations, providing guidelines addressing the social issues in a mining environmental action plan and on strengthening of environmental institutions.

Finally, the paper addresses mining policy for the 21st century, emphasizing that it requires a three-way process involving the companies, the national authorities and the local communities in which all should benefit from the process. Such a process should be anchored on sustainable development and defined by three fundamental prerequisites: economic strength, environmental sustainability and social equity. The decisiveness and skill with which the mining industry balances these three imperatives of its operations coupled with the development of neighboring communities will be a critical factor in defining the long-term future of the industry. 

 

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