1. Exploring Synergies from Partnership
The Case of the EITI and Certified Trading Chains in Mineral Production (CTC)
Nicholas Garrett
8th Annual CASM Conference
Brasilia, October 2008

2. Partnership
“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

3. Partnership - Caveats Think first! Does it make sense?
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?
© Nicholas Garrett, 2008

4. Partnership - 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
© Nicholas Garrett, 2008

5. © Nicholas Garrett, Resource Consulting Services Limited, 2008
Let’s explore potential synergies and scope for partnership!
We support transparency in natural resources sectors!
We support transparency in natural resources sectors!
© Nicholas Garrett, Resource Consulting Services Limited, 2008

6. 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
© Nicholas Garrett, 2008

7. What 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
© Nicholas Garrett, 2008

8. CTC Intervention in the Value Chain
Intervention depends on depth of implementation
© Nicholas Garrett, 2008

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13. The EITI
The EITI
Success through narrow focus on reconciliation of payments – ONE aspect of the value chain only!!
© Nicholas Garrett, 2008

14. The 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
© Nicholas Garrett, 2008

15. The EITI - Related Concepts
The “EITI ++ concept” (World Bank and others)
Intervention along the entire value chain
© Nicholas Garrett, 2008

16. The EITI - Related Concepts
“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:
© Nicholas Garrett, 2008

17. The EITI - Related Concepts
“EITI in ASM concept”
The SSM Value Chain:
© Nicholas Garrett, 2008

18. CTC 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
© Nicholas Garrett, 2008

19. CTC 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
© Nicholas Garrett, 2008

20. CTC 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.
© Nicholas Garrett, 2008

21. CTC and the EITI - Synergies
International
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
© Nicholas Garrett, 2008

22. Muito Obrigado!
Download the corresponding report from: For further details
© Nicholas Garrett, 2008