1 / 22

Experiences with Mining Foundations, Trusts and Funds

Experiences with Mining Foundations, Trusts and Funds. Synergos March 4, 2010. Overview. About the Project Research Objectives Current Status Findings to Date Open Questions Opportunities for Collaboration. About the Project. 3. About the Project. Context

dorian-dodson
Download Presentation

Experiences with Mining Foundations, Trusts and Funds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Experiences with Mining Foundations, Trusts and Funds Synergos March 4, 2010

  2. Overview • About the Project • Research Objectives • Current Status • Findings to Date • Open Questions • Opportunities for Collaboration

  3. About the Project 3

  4. About the Project Context • Initiated by Oil, Gas, Chemical and Mining Policy Division of the World Bank • Complements IFC toolkit (under development) Research objectives • Examine the range of foundation, trust, and fund mechanisms used by the mining sector to deliver local benefit • Document their role and effectiveness in supporting sub-national (local or regional) development and sustainable livelihoods in the short, medium, and long term • Identify conditions for success and factors in failure • Elicit lessons learned/ implications for companies, governments, communities and civil society on the formation of appropriate, effective, and impactful institutions of this kind Emphasis on understanding the role of government; potential to make policy recommendations

  5. Current Status Phase I Phase II • Desktop review of existing literature • Foundation best practice • Research to date on mining-related institutions • Information on individual institutions -> review of sustainability reports/ websites • Interviews with select foundation, trust, and fund representatives • Technical review • Additional desktop research • Online survey of mining foundations, trusts, funds • Country case studies: Peru, South Africa, Papua New Guinea Scope 60+ institutions in the developing world, or serving indigenous peoples in OECD countries, focused on local development

  6. Findings to Date 6

  7. Historical Trends Dramatic increase in number of foundations, trusts and funds since 1990: 27 established after 2000

  8. Current Picture • 60+ institutions, with around 40 located in the developing world – Asia, Africa, Latin America • Most initiated by companies (large multinationals) • About half tied to individual mine sites • Most established early in mine life • Evidence of regional variation in drivers and structure (South Africa, India) • No examples of foundations in aboriginal communities - trusts, funds, equity shares • From $<100k to $64 million in annual spend, with endowments as large as $504 million Part of a spectrum of ways that companies and governments are trying to invest revenue from mining effectively to produce development benefit

  9. Typology Outsourced Donations/ Grant-making Development Approach Partnership Operational/ Implementation Governance Government or Community Driven Company-Driven Multi-stakeholder Wide variation in structure and design of institutions, especially in terms of governance and approaches to achieving development benefits

  10. Drivers: Why Foundations, Trusts, & Funds? • Rising expectations about private sector contribution to development as a condition for social license to operate • Long term development projects • Foster partnership/ collaboration • Delivery of development programs in absence of other institutional capacity • Participatory, transparent, and accountable mechanism for investment of resources for development • Mitigate ‘resource curse’ Hypothesis: more opportunity for ‘shared’ ownership and accountability between stakeholders than company or government-only initiatives?

  11. Emerging Trends (I) • Government use of legal tools (legislation, regulation, concessions) to encourage establishment of foundations/ trusts/ funds

  12. Emerging Trends (II) • Regional, multi-site, multi-company institutions Western Australia Programs Mineral Foundation of Goa • Maintaining, even increasing programs to mitigate impact of site closures due to financial crisis

  13. Common Challenges/ Success Factors Maximizing Impact Stakeholder Relationships Operational Effectiveness • Obtaining, developing competent staff • Operational efficiency/ effectiveness • Financial sustainability • Financial stewardship • Transparency & accountability • Identifying need & defining objectives • Governance • Community consultation & participation • Relationship with mine • Government requirements • Capacity building • Managing expectations & assumptions • Strategic/ effective selection of programs & projects • Investment in sustainable livelihoods • Monitoring & evaluation

  14. Common Challenges/ Success Factors Stakeholder Relationships Company Foundation Government Community Foundations/ trusts/ funds can address the mutual interests and objectives multiple stakeholders, but also serve as a space in which conflict or tension between different agendas can play out

  15. Challenges Stakeholder Relationships

  16. Challenges Operational Effectiveness Achieving Financial Sustainability • Innovative models for trust funding and management tied to project cycle, ‘sustainability’ of financial resources • Long-term planning and management • Leveraging resources • Co-financing and fee for services in projects • Multi-company funding (including suppliers0 • Bi-lateral funding Few examples of foundations, trusts, funds that have been able to attract public or private financing

  17. Maximizing Impact Challenges Monitoring & Evaluation • Infrequent use of baseline assessments to establish needs • Little formal re-evaluation of need over time • Measuring program ROI • Measuring long-term, cumulative, and regional or national impact Investment in Sustainable Livelihoods • Focus on investment in basic services or education • Little investment in economic development programs aimed at creating alternative livelihoods -> why?

  18. Open Questions 18

  19. Open Questions • What has been the government role in promoting the use of these institutions and/ or their success? • What are the benefits/ disadvantages of different models of foundation/ trust/ fund ‘governance’?Of different development approaches (operational, partnership, grant-making, outsourced)? Are some more effective than others? • How do women and other vulnerable populations participate in governance, project design and implementation? • How can institutions best build the capacity of stakeholders to participate in governance and execution? • What other dilemmas do institutions face in their relationships with various stakeholders? How can they reduce – or contribute to – community conflict or cohesion? • How and when should foundation/trust/ funds objectives adapt their to changing regional/ local development objectives?

  20. Opportunities for Collaboration with Philanthropic Sector 20

  21. Opportunities for Collaboration • Transfer of expertise/ best practice • Qualified personnel • Joint investment of resources for project implementation • Financial support • Networking with donor/ foundation community

  22. Contacts Julia Nelson Manager Advisory Services Business for Social Responsibility 415.984.3251jnelson@bsr.org

More Related