exploring partnership ctc eiti final

Exploring Synergies from Partnership

The Case of the EITI and Certified Trading Chains in Mineral Production (CTC)

Nicholas Garrett

8th Annual CASM ConferenceBrasilia, October 2008

PartnershipPartnership

“Partnership is critical to effective problem solving of the challenges facing business and the developing world. Simply put, the issues are too complex and interdependent, and the resources and legitimacy for tackling them too dispersed between sectors, for any one group to have all the solutions alone.”

(Source: Jane Nelson, Director of the Corporate Social Responsibility Initiative at the Kennedy School of Government, Harvard University)

© Nicholas Garrett, 2008

Partnership - CaveatsPartnership - Caveats

• Not an answer to every problem• Not easy to establish, sustain and scale up• Face strategic, policy-related challenges• Operational Obstacles


Think first! Does it make sense?

Partnership - BenefitsPartnership - Benefits

• Harness the skills and resources of different sectors and actors

• Improve reach and impact• Achieve greater efficiency• Increase legitimacy


More effective and stronger development solutions

We support transparency in natural resources sectors!

© Nicholas Garrett, Resource Consulting Services Limited, 2008

We support transparency in natural resources sectors!

Let’s explore potential synergies and scope for partnership!

Exploring Synergies from Partnership The EITI and CTC – why?

Exploring Synergies from Partnership The EITI and CTC – why?

• Both initiatives:• provide incentives for companies and governments to support good

natural resource governance in host countries• have strong emphasis on transparency• are of strategic importance to German development cooperation

• The EITI:• already enjoys widespread political support• welcomes debate on possible future avenues to further transparency,

also in ASM

• CTC:• requires more widely spread political support • seeks legitimacy • is learning


What is CTCWhat is CTC

• Step by step move from CSR system of governance and assurance towards third party verification to possibly government regulations

• Phased approach from voluntary towards mandatory assurance of social and environmental performance

• Draft Standards have been developed• Not a final product, planning & consultation are ongoing• Rwanda Pilot to start 2009• DRC concept developed 2009


CTC Intervention in the Value Chain

CTC Intervention in the Value Chain

• Intervention depends on depth of implementation


The EITI The EITI • The EITI

– Success through narrow focus on reconciliation of payments – ONE aspect of the value chain only!!


The EITI - Related ConceptsThe EITI - Related Concepts

• The “EITI + concept” (applied in oil and gas in Nigeria)

• Reconciliation of Payments• Capacity Building• Financial Audits of Companies and Government• Process Audits• Public Information Campaigns



• The “EITI ++ concept” (World Bank and others)

– Intervention along the entire value chain



• “EITI in ASM concept”• History: • Until 2007: sporadic discussions within DFID• 2007: EITI in ASM report

• Imperative to distinguish between the AM and SSM value chains

• The AM Value Chain:



• “EITI in ASM concept”

• The SSM Value Chain:


CTC and the EITI – Contact PointsCTC and the EITI – Contact Points

• Value Chain Intervention

Biggest overlap with EITI concepts, particularly “EITI in ASM”

CTC has wide focus, so actual overlap depends on depth of implementation of any of the EITI concepts


CTC and the EITI – Contact PointsCTC and the EITI – Contact Points• CTC Standard 17: “Implementing companies are required to meet fiscal

obligations required by host government law and publish all payments made to government in accordance with the standards of the EITI”


creates and enhances the governance structures required for the implementation of the EITI and/or its related concepts

does not equate to EITI implementation in ASM

CTC and the EITI – PartnershipCTC and the EITI – Partnership

• Synergies vary between CTC and the EITI – and CTC and the EITI concepts

If the EITI concepts were to develop further, more synergies would arise and partnership could be explored further

Significant synergies between the EITI and CTC already exist - scope for collaboration in specific areas.


CTC and the EITI - SynergiesCTC and the EITI - SynergiesInternational• Mutual Learning• International Secretariat Location• Shared and/or Co-hosted Conferences• Formal Representation • Establishing the “EITI in ASM concept”

National• Enhancing Government Capacity and Control Functions• Finding Civil Society Stakeholders to contribute to CTC• Enhancing Civil Society Capacity• Building Trust and Mutual Knowledge with the Private Sector• National Level Process Management• National and Sub-National Level Learning and Trust Building• Data Gathering and Auditing• Information Exchange• Public Information Campaigns


Muito Obrigado!Muito Obrigado!

Download the corresponding report from:

www.resourceglobal.co.ukFor further details email:

[email protected]


http://www.resourceglobal.co.uk/

exploring partnership ctc eiti final

Business

eiti related concepts

eiti success

partnershipthe eiti

partnership partnership

eiti conceptworld bank

ctc intervention

asm ctc

natural resources sectors