 |
 |
> > View this email in your browser > <https://mailchi.mp/law/perspective-325?e=4c4de50aea> > > 哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看: > https://ccsi.columbia.edu/content/columbia-fdi-perspectives > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=931d2abeed&e=4c4de50aea> > . > *Columbia FDI Perspectives* > Perspectives on topical foreign direct investment issues > Editor-in-Chief: Karl P. Sauvant ([log in to unmask]) > Managing Editor: Riccardo Loschi ([log in to unmask]) > > *The Columbia FDI Perspectives are a forum for public debate. The views > expressed by the authors do not reflect the opinions of CCSI or our > partners and supporters.* > > No. 325 February 21, 2022 > *How FDI in the mining sector can assist communities to achieve > sustainable development* > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=c2192fc0c9&e=4c4de50aea> > by > James Otto* <#m_3602492134333003300_m_-3045558600984427616__edn1> > > The mine opens and extracts minerals for 25 years. Then it closes, and the > site is rehabilitated as required by law. End of story? From the > perspective of an international investor, this is often the case—a classic > example of the boom-bust cycle associated with large mines. However, the > immediate impact of closing a mine can be devastating to local communities, > businesses and people that had depended on the project. Acknowledging that > closure impacts can be mitigated, governments, extractive companies, civil > society, and other stakeholders have developed approaches that target > long-term sustainable development. These approaches, which can be > contractual, seek to strengthen communities’ capacity to develop > sustainable economic activities while mines are in operation, and that can > be maintained after they close. > > Today, governments and industry have a stronger interest than in the past > to achieve sustained development in communities affected by large projects. > Increasingly, the trend is to move to a standardized, statutory approach to > national investment regulation. Several tools are available now to promote > immediate and sustainable development around mining projects. These include > two complementary approaches: corporate social responsibility (CSR) > programs and community development agreements (CDAs). > > *CSR programs*. Large mines have always played a role in local > economies—directly, as providers of employment, local procurement and > infrastructure; indirectly, through economic multiplier impacts. However, > community expectations can be higher than this, and increasingly investors > need to earn “a social license to operate” by gaining and maintaining the > support of the local population.[1] > <#m_3602492134333003300_m_-3045558600984427616__edn2> Most large mines > today have voluntary CSR programs, often emphasizing immediate needs—for > example, building a school, providing uniforms for the kids’ soccer teams > or organizing immunization efforts. The strength of CSR programs is that > they address immediate needs. However, well-designed CSR programs can, but > do not always, address sustainable development, development that will > prepare affected communities for after the operations close. For example, > how will teachers in the investor-built schools work and be paid after > investors leave? > > *CDAs*. As the name implies, a CDA focusses on development, which may > include not only immediate community development, but also sustainable > development to prepare communities for post-closure. Some CDAs are legally > binding contracts; others take forms that are less enforceable. The parties > to such agreements may include affected communities, the investors and > possibly governments. Unlike CSR programs (that can be substantially > unilateral, but need not be), CDAs are generally bi- or multi-lateral, with > the obligations of the signatory parties defined in the agreements. CDAs > may be required by statutory law (for example, where the mining law > requires all large-scale mines to have a CDA) or created at the discretion > of the interested parties. Over 40 jurisdictions now require CDAs for > large-mining operations[2] > <#m_3602492134333003300_m_-3045558600984427616__edn3> and more than 50 > impose some sort of community development effort.[3] > <#m_3602492134333003300_m_-3045558600984427616__edn4> To aid governments > in mandating CDAs, the World Bank has published an in-depth source-book > on CDAs > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=545a6e29c2&e=4c4de50aea>, > including model mining regulations > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=7af922a31d&e=4c4de50aea> > that set out recommended regulatory and CDA content requirements. Following > the World Bank’s publication, the United Nations published an updated > version > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ec195843ab&e=4c4de50aea> > of model regulations.[4] > <#m_3602492134333003300_m_-3045558600984427616__edn5> Other organizations > have published various best-practice CDA guidance, including on how to > address implementation challenges.[5] > <#m_3602492134333003300_m_-3045558600984427616__edn6> > > For governments that mandate CDAs, statutory law may address such topics > as what types of projects are required to have CDAs, parties to agreements, > mandatory agreement content, periodic CDA revision, negotiation capacity, > agreement approval, alignment with government development plans, how new > community members are to be handled, annual minimum expenditure and > reporting requirements, penalties, and enforcement. > > Although statutory law may set out certain CDA requirements, the specific > content of a CDA needs to be tailored to the situation. Typically, a CDA > should include the agreement’s objectives; beneficiaries; the party > managing the agreement; the person or body representing the community; how > the community, including marginalized groups, will participate in > decision-making processes and implementation; a development program plan; > community consultations on mine-closure planning; obligations of the > community to the investor; how and when CDAs will be reviewed and updated; > consultative and monitoring frameworks; how funds made available under the > agreement are disbursed, what accounts must be kept and by whom and > reporting and auditing requirements; grievance and dispute-resolution > provisions; and the process by which agreements may be modified. These > elements are also described in detail in the above-mentioned model CDA > regulations. > > The use of CSR and CDAs can (and should) play an important role in > managing community expectations. They provide a means to achieve > sustainable development for mine-dependent communities long after the mine > ceases to operate. > > ------------------------------ > * <#m_3602492134333003300_m_-3045558600984427616__ednref1> James Otto ( > [log in to unmask]) is the former Director and Professor of the > Environmental and Natural Resources Advanced Degree Program at the > University of Denver Sturm College of Law. The author wishes to thank Boris > Dolgonos, Perrine Toledano and Louis T. Wells for their helpful peer > reviews. > [1] <#m_3602492134333003300_m_-3045558600984427616__ednref2> Anne B. > Read, “Defending home: How resistance movements are framed against mineral > extraction in Cajamarca and Tambogrande, Peru,” *International > Development, Community and Environment* (IDCE) (2017), p. 18 > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=d7aa738cd2&e=4c4de50aea> > . > [2] <#m_3602492134333003300_m_-3045558600984427616__ednref3> James Otto, > “How do we legislate for improved community development?,” WIDER Working > Paper 2017/102, April 2017, pp. 8 and ff. > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f863844133&e=4c4de50aea> > [3] <#m_3602492134333003300_m_-3045558600984427616__ednref4> See IISD, > Mapping community development requirements in the mining sector database > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=5a8c34c286&e=4c4de50aea> > . > [4] <#m_3602492134333003300_m_-3045558600984427616__ednref5> See Otto, *op. > cit.*, pp. 19-28. > [5] <#m_3602492134333003300_m_-3045558600984427616__ednref6> See, e.g., Jennifer > Loutit, Jacqueline Mandelbaum and Sam Szoke-Burke, “Emerging practices in > community development agreements,” Columbia Center on Sustainable > Investment, February 2016 > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=145a3903f1&e=4c4de50aea> > . > *The material in this Perspective may be reprinted if accompanied by the > following acknowledgment: “James Otto, ‘How FDI in the mining sector can > assist communities to achieve sustainable development,’ Columbia FDI > Perspectives No. 325, February 21, 2022. Reprinted with permission from the > Columbia Center on Sustainable Investment (**http://ccsi.columbia.edu* > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=15799b9e13&e=4c4de50aea>*).” > A copy should kindly be sent to the Columbia Center on Sustainable > Investment at **[log in to unmask]* <[log in to unmask]>*.* > > For further information, including information regarding submission to the > *Perspectives*, please contact: Columbia Center on Sustainable > Investment, Riccardo Loschi, [log in to unmask]; Luca Jobbagy, > [log in to unmask] > > *Most recent Columbia FDI Perspectives* > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=5e8a43a054&e=4c4de50aea> > > > - No. 324, Charlie Garnjana-Goonchorn, “An Advisory Centre on > International Investment Law: Is perfect the enemy of good?,” Columbia FDI > Perspectives, February 7, 2022 > - No. 323, Julien Chaisse, “FDI and sustainable development in the > EU-China investment treaty: Neither high nor low, just realistic > expectations,” Columbia FDI Perspectives, January 24, 2022 > - No. 322, Mohammad Saeed, “Implementing an Investment Facilitation > Framework for Development: Lessons from the Trade Facilitation Agreement,” > Columbia FDI Perspectives, January 10, 2022 > > *All previous FDI Perspectives are available at > https://ccsi.columbia.edu/content/columbia-fdi-perspectives > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=22d67bf147&e=4c4de50aea>* > . > > *Other relevant CCSI news and announcements* > > - > > CCSI's 2022 *Executive Training Program on Extractive Industries and > Sustainable Development* will take place online from June 6-17, 2022. > The program is designed to equip participants with the necessary skills to > promote the responsible development of the extractive industries sector in > resource-rich developing countries and to encourage a rich dialogue about > best practices from around the globe. The two-week training emphasizes the > interdisciplinary nature of resource-based development. By working through > real case studies and with practitioners and experts in the field, > participants will be able to apply analytical tools and frameworks to the > unique context of the extractive industries in their country. For more > information, and to apply by March 31, 2022, visit our website > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=b33cc1dd95&e=4c4de50aea> > . > - CCSI's 2022 *Executive Training Program on Sustainable Investments > in Agriculture* will take place online from May 3-13, 2022. The > training provides an interdisciplinary approach to addressing the > challenges and opportunities of agricultural investments. The program is > designed to equip participants with the necessary knowledge and skills to > address some of the key challenges posed by international investments in > agriculture, and to encourage a rich dialogue about practices from around > the globe. Applications will be considered on a rolling basis until March > 31, 2022. For more information, and to apply, visit our website > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=c54b2e3f63&e=4c4de50aea> > . > > > - *The 2020 edition of The Yearbook on International Investment Law > and Policy > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=eb108fd714&e=4c4de50aea> > *(edited by CCSI's Lisa Sachs, Lise Johnson, and Jesse Coleman) is now > available online > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ce4b2d6bdd&e=4c4de50aea> > and in hard copy > <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=593b505f8f&e=4c4de50aea>. > The 2020 edition includes policy, thematic and regional developments from > 2020 in investment law and policy, including the impacts of the COVID-19 > pandemic on investment flows and governance. > > Karl P. Sauvant, Ph.D. > Resident Senior Fellow > Columbia Center on Sustainable Investment > Columbia Law School - Earth Institute > Ph: (212) 854-0689 > Fax: (212) 854-7946 > *Copyright © 2022 Columbia Center on Sustainable Investment (CCSI), All > rights reserved.* > [log in to unmask] > > *Our mailing address is:* > Columbia Center on Sustainable Investment (CCSI) > Columbia Law School - Earth Institute, Columbia University > 435 West 116th Street > New York, NY 10027 > > Add us to your address book > <https://columbia.us6.list-manage.com/vcard?u=ab15cc1d53&id=a61bf1d34a> > > > unsubscribe from this list > <https://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=4c4de50aea&c=9c70f8772b> > update subscription preferences > <https://columbia.us6.list-manage.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=4c4de50aea&c=9c70f8772b> > > > [image: Email Marketing Powered by Mailchimp] > <http://www.mailchimp.com/email-referral/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=referral_marketing&aid=ab15cc1d53&afl=1> > -- *Karl P. Sauvant, PhD* *Resident Senior Fellow* *Columbia Center on Sustainable Investment* Columbia Law School - The Earth Institute, Columbia University 435 West 116th St., Rm. JGH 825, New York, NY 10027 | p: (212) 854 0689 | cell: (646) 724 5600 e: [log in to unmask] | w: www.ccsi.columbia.edu | t: @CCSI_Columbia <https://twitter.com/CCSI_Columbia> "What foreign investors want: Findings from an investor survey", "Incentivising Sustainable FDI", "Leveraging Digital FDI for Capacity and Competitiveness", "Green FDI: Encouraging carbon-neutral investment", "Facilitating Sustainable Investment to Build Back Better", "Extending International Legal Aid from Trade to Investment: An Advisory Centre on International Investment Law", "Increasing Transparency in Investment Facilitation: Focussed Support is Needed", *Investment Facilitation for Development: A Toolkit for Policymakers*, "More Attention to Policies! Improving the Distribution of FDI Benefits. The Need for Policy-oriented Research, Advice and Advocacy", "More and Better Investment Now!", "Facilitating Sustainable FDI in a WTO Investment Facilitation Framework: Four Concrete Proposals", "Multinational Enterprises and the Global Investment Regime: Toward Balancing Rights and Responsibilities”, "An Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI: What? Why? How?", are available at https://ssrn.com/author=2461782 . ____ AIB-L is brought to you by the Academy of International Business. For information: http://aib.msu.edu/community/aib-l.asp To post message: [log in to unmask] For assistance: [log in to unmask] AIB-L is a moderated list.