9. Sustainable Development

Attention to social and environmental impacts and concerns has become mainstreamed to all aspects of  EI sector management Impact assessment and mitigation plans and the institutional capacity to enforce good practice are critical to success.

Once a decision has been made on how much of the resource revenues generated and collected will be spent, governments face the challenge of identifying and implementing policies to ensure that the revenues are well spent with a view to ensuring a positive and sustainable impact on growth and development. This chapter considers appropriate priorities for expenditure and investment in resource-rich economies, and measures that might be taken to improve the efficiency and effectiveness of spending.

The below image shows the importance of Sustainable Development as a qualitatively different subject to the four preceding Chapter subjects (represented by the four chevrons to the left hand side): whereas the first four subjects represented here are concerned with process issues, e.g. Chapter 7, Fiscal Design and Administration, Sustainable Development is not about a process but is a policy objective in its own right, one whose realization is supported by the achievement of these four Chapter subjects.

links between first four, and fifth, chevron

The requirements for sustainable development are essentially: pro-growth policies that emphasize the need for widespread social benefits with proper environmental stewardship if these policies are to be sustainable. An in-depth analysis of these linkages can be found in an ICMM publication, titled: ‘The Challenge of Mineral Wealth – Using Resource Endowments to Forster Sustainable Development’ (2006); see also the ICMM's 10 Principles of Sustainable Development Framework. In low income countries this is rarely the outcome however. Governance is usually weak and political goals are often complex and guided by narrow self-interest. This creates the risk that mining operations, for example, will become enclaves. Companies therefore have to become proactive and work with communities to build the skills necessary for mine employment and the provision of goods and services.

At the same time, there is a growing impact from standards and soft law mechanisms that require a voluntary response from the players for compliance, particularly in the environmental and social sphere. The latter concerns form the second principal component of this Chapter.  For a summary of 25 voluntary instruments (soft law) see the resource Principles and Good Practice Guidance for Governments and Extractive Industries.

Additional Reading:



Within This Chapter

Mining Specifics

Oil & Gas Specifics

Africa

Latin America

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  • Daniel Gilbert: Hi, Nazim We are keen to engage with WWF on this fisheries issue in the niger-delta, see "WWF is working with the government, industry, and civic leaders in Nigeria to minimize the risks of oil and gas development to vital fisheries,… read more
  • Ife: Yes, Nazim, I know where you are coming from. You dont mention, but easily could have, the flaring of the natural gas morning, noon and night - energy that could go to the citizens of Nigeria, where I am from. We are so poorly served that we… read more
  • Nazim: I was born and brought up in the niger-delta, we were happy as fishermen and fishermen's children, drinking water from our rivers, now our source of livelihood is gone, the waters are all polluted, you can't drink the water, you cant fish becuase… read more