governance

Canada’s Prime Minister, Stephen Harper, took a significant step toward promoting transparency and reducing global poverty. He announced yesterday that Canada will implement mandatory reporting requirements for Canadian extractive companies operating both in-country and abroad.

This mandate will require Canadian extractive companies to publicly disclose the payments they make to foreign governments in exchange for permission to operate on their soil. This development will help promote transparency in the mining sector and, if implemented effectively, could help combat the “resource curse.”

Fighting the Resource Curse through Access to Information

Tackling the “resource curse” is a challenge of global proportions. The term applies to situations where, despite a country’s mineral or oil wealth, poverty is exacerbated in part by weak or corrupt institutions, government mismanagement of revenues, and a failure to re-invest into projects that benefit the public—such as infrastructure, education, and healthcare. Often, citizens of resource curse countries aren’t able to hold their governments accountable for this abuse of power because they lack information about their country’s revenues and expenditures (see Box).

Harriet Bibangambah, a Research Officer at Greenwatch Uganda, also contributed to this post.

Uganda is one of only 10 African countries with a national access to information (ATI) law. These types of laws are essential to human rights, providing citizens with legal access to the government-held information that directly impacts them—information on issues like mining permits, logging concessions, air quality data, and more. But as researchers are learning, ATI laws on the books do not necessarily guarantee freedom of information.

Investigating Access to Information in Uganda

The Access to Information in Africa project—a joint initiative with WRI and the Ghana Center for Democratic Development, Greenwatch Uganda, and Open Democracy Advice Centre of South Africa—evaluates transparency models and environmental accountability in Africa. The project’s research includes conducting a series of citizen requests for information in Ghana, Uganda, and South Africa.

Uganda passed its Access to Information Act in 2005, releasing an implementation plan and ATI regulations in 2011. The regulations establish procedures for citizens to request government-held information and for the government to respond to citizen requests. WRI and Greenwatch, a Ugandan environmental law and advocacy organization set out in August 2011 to investigate how the law works.

Indonesia’s President Susilo Bambang Yudhoyono made a bold and courageous decision this week to extend the country’s forest moratorium. With this decision, which aims to prevent new clearing of primary forests and peat lands for another two years, the government could help protect valuable forests and drive sustainable development.

Enacted two years ago, Indonesia’s forest moratorium has already made some progress in improving forest management. However, much more can be done. The extension offers Indonesia a tremendous opportunity: a chance to reduce emissions, curb deforestation, and greatly strengthen forest governance in a country that holds some of the world’s most diverse ecosystems.

Boosting Achievements from Indonesia’s Forest Moratorium

Indonesia ranks as one of world’s biggest greenhouse gas emitters, largely due to the clearing of forest and peat lands. The forest moratorium aims to address this problem by prohibiting the award of new licenses to clear or convert primary natural forests and peat lands to agriculture or other uses. This will encompass an area of over 43 million hectares of land. Forest users with existing licenses are still allowed to operate in these regions, and there are several exceptions to the rule.

Chinese overseas investments are rapidly increasing. As of 2011, China’s outward foreign direct investments (OFDI) spread across 132 countries and regions and topped USD 60 billion annually, ranking ninth globally according to U.N. Conference on Trade and Development statistics. A significant amount of this increasing OFDI goes to the energy and resources sectors—much of it in Asia, Africa, and Latin America.

But there are two sides to China’s OFDI coin. On the one side, these investments can benefit China and recipient countries, generating revenue and improving quality of life. However, like any country’s overseas investments, without the right policies and safeguards in place, these investments can fund projects that harm the environment and local communities.

WRI‘s new issue brief surveys the progress and challenges China faces in regulating the environmental and social impacts of its overseas investments. I sat down with WRI senior associate and China expert, Hu Tao, to talk about China’s overseas investment landscape. Before joining WRI, Tao worked as a senior environmental economist with China’s Ministry of Environmental Protection (MEP). Here’s what he had to say:

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part two of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.

Three years after a political uprising overthrew the president of Kyrgyzstan, challenges still exist in the country’s energy sector. Before the revolution, the central Asian country suffered rolling blackouts, poor service, and skyrocketing prices, ultimately leading to nationwide revolts and the ouster of President Kurmanbek Bakiyev. Again this past winter, half of the people in the nation’s capital experienced a major blackout, leaving them without access to electricity during the coldest months of the year. The city still faces 900 outages per week.

High energy demand, outdated transmission equipment, and power theft all put increasing stress on energy supplies, but issues of corruption and basic transparency exacerbate the crisis. Civil society groups are turning their attention to these issues to help improve Kyrgyzstan’s energy situation.

These groups are working with a government initiative to open up the decision-making processes in a sector that has traditionally hidden behind closed doors. Their efforts to increase transparency are essential to creating meaningful reform in the Kyrgyz energy sector.

The World Bank’s annual spring meetings take place this week in Washington, D.C. One big topic on the agenda is how to update the World Bank’s “safeguard” policies. Created in the early 1990s, these policies ensure that the Bank considers the social and environmental effects of proposed projects. For example, the safeguards require those borrowing money to assess the project’s environmental impacts and to compensate households who are negatively affected.

The full suite of safeguards is now under review for the first time. Among other things, the Bank hopes to make its safeguard policies reflect changes in the global economic and political landscape that have occurred in recent decades.

World Bank Safeguards vs. National Safeguards

One question on the table is how the World Bank safeguards should interact with national systems already in place in recipient countries. Since the creation of the Bank’s safeguards, many countries have strengthened their own rules and institutions to ensure that large-scale projects are implemented in a manner that protects people and the environment. These include, for instance, laws requiring environmental impact assessments, or government agencies to oversee land use changes. Relying on these domestic systems can potentially improve protection of people and the environment. National laws, for example, allow governments and citizens to work within their own familiar structures, and they’re sometimes more appropriate for local circumstances than Bank policies.

UPDATE, 4/19/13: Fourteen Latin American and Caribbean (LAC) countries adopted an ambitious Plan of Action to improve access rights on April 17, 2013. Read WRI's press release for more details about the Plan of Action for the LAC Principle 10 Regional Declaration.

Without the right laws and safeguards in place, development can come at the expense of the environment and local communities. This point is especially evident in Latin America and the Caribbean (LAC). Newspapers across the region regularly document conflicts over land and natural resource use, hydroelectric power development, oil exploitation, expansion of agriculture into virgin forests, and the disruption of indigenous practices.

Many of these conflicts occur because countries lack strong laws and practices that encourage the public’s access to information and early participation in government decision-making. Without these laws in place, citizens can’t legally obtain information on projects like proposed oil wells or highways—or engage in the decision-making processes about developing and approving these projects. Governments can then make decisions without considering the impact on local citizens. The resulting social, environmental, or health costs often fall disproportionately on the affected communities. (See our video, "Sunita," for more information on the need for access to information laws).

But the situation in the LAC region could be poised to change, depending on what happens at a meeting this week. Representatives from 13 countries and two observer countries will meet with civil society groups in Guadalajara, Mexico, to finalize a two-year action plan on implementing the LAC Principle 10 Regional Declaration. If attendees come up with a strong plan, several LAC countries will come closer to adopting a plan for improving environmental justice and public participation rights across the region.

As the old adage suggests, it is important to see the forests for more than just the trees. While an estimated 500 million people depend directly on forests for their livelihoods, the entire world depends on them for food, water, clean air, and vital medicines. Forests also absorb carbon dioxide, making them critical to curbing climate change.

Despite some encouraging anti-deforestation efforts in places like Brazil, Indonesia, and Africa, globally, forests are under threat, particularly in the tropics. Between 2000 and 2010, nearly 13 million hectares of forests were lost every year. About 30 percent of the global forest cover has been completely cleared, and 20 percent has been degraded.

This dilemma begs the question: What is the outlook for forests in 2030? Are we missing the opportunity to preserve forests and ensure they continue to deliver the goods and services we need for a growing global population? How can we use forests to build a thriving global green economy?

Asking these questions is important. Finding answers to the challenges they raise is imperative.

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part one of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in making electricity decision-making more open, inclusive, and fair. The series draws on the experiences of WRI’s Electricity Governance Initiative, which are documented in a new report, “Shining a Light on Electricity Governance.”

Access to electricity poses major challenges in India. Service varies considerably across the country. In some regions, fewer than 40 percent of people have access to electricity, while half of all rural households lack access to power. These issues will become more challenging as demand for energy is expected to double by 2020. The country will need to figure out how to provide affordable, reliable power in ways that benefit both people and the planet.

But India has a powerful ally in overcoming these electricity challenges: civil society organizations (CSOs).

People’s Monitoring Group on Electricity Regulation Steps In

In the state of Andhra Pradesh, the People’s Monitoring Group on Electricity Regulation (PMGER), a partner with WRI’s Electricity Governance Initiative (EGI), acts as an advocate for affordable, reliable power. The organization is a consortium of NGOs whose constituencies include farmers’ organizations, environmental and development advocacy groups, electricity advocacy groups, workers’ unions, and research organizations. PMGER ensures that Andhra Pradesh’s electricity decisions are fair, effective, and made with citizens’ best interests in mind.