Archive for the ‘West Africa’ Category

Zambian Copper and a new “AIDs crisis”?

May 15th, 2013 | by

Africa is suffering from a new AIDs crisis: ‘Air-conditioned Induced Decisions.’  Our leaders live in air-conditioned homes, travel in air-conditioned cars, work in air-conditioned offices.  And it affects the decisions they make.” ~Maiko Zulu, Zambian reggae music star and activist

I had a chance to meet Maiko Zulu last week.  He wears frustration and disappointment with his country on his sleeve (and in his music).  Zambia is a country that should be improving economically.  Driven by mining large copper and cobalt reserves, economic growth has been high for the last decade, not less than 5% per year and more than 7% as recently as 2010.  The Economist in 2011 listed Zambia as one of the world’s 10 fastest-growing economies. Since, 2000, average income per capita has grown by more than 40%, lifting Zambia from “low-income country” to a “lower middle-income country.”

But high economic growth and increased average income have not translated into reduced poverty or better conditions for most Zambians.  If Zambia’s national income was a dollar, the poorest 10% of Zambians receive less than $0.02 and the richest 10% control $0.43, making Zambia one of the most unequal countries on earth. Despite good news on growth and income, Zambia is becoming more unequal and poverty is actually rising.

This analysis comes from a very important report released last week, Equity in Extractives, launched by the Africa Progress Panel.  It looks closely at the 20 African resource-rich countries that depend on extractive industries and finds they are performing quite badly in converting their mineral and energy wealth into benefits for the public. A few factoids:

  • Twelve of the 25 countries in the world with the highest child mortality rates are resource-rich African countries.
  • Equatorial Guinea, rich with oil, is actually now classified as a high-income country with an average income of more than $27,000 a year, higher than Poland.  But Equatorial Guinea’s child-death rate is 20 times higher than Poland’s.

In general, the resource-rich African countries are badly under-performing on basic human development and poverty reduction, despite how much money they’re making.  This chart tells the story: on the left are the countries’ ranking on wealth (actually income), and on the right is their ranking on human development indicators.  That rightward slope means people aren’t getting the health, education, and opportunity that they deserve.  Most resource-rich countries under-perform in every indicator. (Tanzania and Ghana are notable.)

Wealth_Wellbeing_Gap

One of the most interesting bits of the report is a forensic analysis that shows that inequality is growing in resource-rich countries, or at least in those the report analyzed.  The data is hard to come by, but seems to show that not only is the economic growth and revenue from oil and mining boom not being shared, but the elite are capturing (stealing?) ever more of the money over time. This means less poverty reduction than there should be, and in some cases more poverty than there was.

More than that, revenues that rightfully belong to the people of these countries are diverted through poor governance, thereby robbing the majority of citizens from the chance to improve their lives via social services and government investment intended to diversify economies. By not widening opportunities away from dependence on extractives and creating more jobs, inequality is not addressed.

Gawain and Maiko Zulu May 13

Gawain Kripke and Maiko Zulu in Cape Town last week.

The paper is important, and not only if you’re interested in extractive industries.  The analysis provides useful insights and ways to look at the issues that will interest anyone who cares about development and poverty.  The paper is studiously optimistic about the role extractive resources can play in benefiting development and poverty reduction.

Meanwhile, the truth of the inequality of growth is becoming more evident to the public in these countries.  As Maiko Zulu observes above, there is a disconnect between the public interest and those of the plutocrats and oligarchs who are running the countries.

“We can’t speak of economic growth when people are dying of poverty.”

Will disconnect eventually lead to discontent?  That’s a risky proposition that could lead anywhere…

***

To read the Equity in Extractives report, click here.

Global bigwigs push back on big oil

May 10th, 2013 | by

The chair of the Africa Progress Panel, former UN Secretary General Kofi Annan, has pushed back on an oil industry attack against the landmark US Dodd-Frank Act oil and mining payment disclosure provision. In an op-ed in today’s New York Times, Annan said the lawsuit launched by the American Petroleum Institute against the US Securities and Exchange Commission was a “strategic folly” and those companies supporting the suit, such as Chevron, Exxon, BP and Shell were “swimming against the tide of reform”.

Former UN Secretary General Kofi Annan, Chair of the Africa Progress Panel. UN Photo/Evan Schneider

Former UN Secretary General Kofi Annan, Chair of the Africa Progress Panel. UN Photo/Evan Schneider

The Africa Progress Panel’s 2013 report “Equity in Extractives” was released today in Cape Town and focuses on steps to take to ensure that Africa’s oil, gas and mining boom actually benefits the majority of African’s rather than a select few. The panel includes the former head of the IMF, Michel Camdessus; former US Treasury Secretary Robert Rubin; former Nigerian President Olusegun Obasanjo; former first lady of Mozambique Graca Machel; and Peter Eigen, founder of Transparency International and former chair of the Extractive Industries Transparency Initiative, among others.

These heavy hitters stand behind a report that says there “is no credible evidence to indicate that the Dodd-Frank requirements will impose significant additional costs, let alone threaten the competitive position of some of the world’s largest companies.” The report says that the “Cardin-Lugar” or Section 1504 provision of Dodd-Frank and forthcoming European Union disclosure requirements provisions represents an important opportunity for African civil society groups to work with multinational companies to “achieve higher standards of disclosure” but notes that some companies appear “to be squandering that opportunity” with the US lawsuit.

In advance of June’s G8 summit, the report says “all countries must adopt and enforce” project-by-project disclosure standards such as in the US and EU—“as major players in Africa’s extractives sector, Australia, Canada and China should be the next countries to actively support this emerging global consensus.”

Oxfam’s new Executive Director, Winnie Byanyima, is from Uganda, a country undergoing its own oil boom, and is in Cape Town for the World Economic Forum Africa. She said “African governments must use oil, gas and mining to raise revenue, but this boom must not steamroll the rights of communities living on top of Africa’s mineral wealth. It is important that local communities are informed and consulted about extractive industry projects that affect them.”

With the political boost from today’s African Progress Report we are one step closing to realizing the so far unrealized potential of Africa’s resource endowment.

Mothers: A great return on investment

May 10th, 2013 | by

As a mother of two, I now know that all my years of schooling did not prepare me nearly as well for working life as being a mother. As all mothers know, mothers are the ultimate project managers and multi-taskers, juggling many tasks at once, carrying out strategies but always being nimble to change course on a dime in the face of a temper tantrum, dirty diaper, or sick child. But for mothers in the developing world there are even bigger and more dire challenges, like where the next meal will come from, how to get medicine for a sick child, or finding potable drinking water. And yet, mothers in the developing world learn to cope with these challenges daily. That’s why so many are now realizing that investing in women is the key to feeding the planet and to economic growth.

According to a recent Gates Foundation report, “When women don’t control resources and income, their households may suffer from malnutrition. Men are less likely than women to reinvest their income in the health of the family.”  In a report by the Food and Agriculture Organization of the UN, women are deemed to be the key to food security indicating that “if women had equal access to agricultural resources and services, food security would be greatly improved and societies would grow richer, and not only in economic terms.”

But it isn’t just NGO’s and UN bodies claiming a good return on investment when providing resources and opportunities to women, Goldman Sachs, the large investment firm also conducted research with the World Bank and concluded that “investments in women—particularly in education and labor force participation—lead to read GDP growth, as women take their earnings and invest them back in their families and communities.” And just last week the billionaire and investment guru, Warren Buffett also expressed his bullish take on women in an essay published in Fortune magazine where he declares his optimism for America’s future lies with American women, untapped resource!

So to all those mothers and multi-taskers, here is a list of 10 (thought there are undoubtedly more) tasks that women in the developing world take on each day:

1. Child rearing

Child Rearing

 

This mother and child fled their villages and had just arrived at the El Salaam camp in North Darfur. Photo: Eva-Lotta Jansson / Oxfam America

 

 

 

 

 

 

2. Cooking

Cooking

 

Cooking “arroz chaufa” (stir fried rice) in the communal pot, village of San Jacinto, Peru. Photo: Evan Abramson /Oxfam America

 

 

 

 

 

 

3. Growing commodity crops for sale

Crops

 

Etchi Avla on her cocoa farm in Botende, Ivory Coast. Photo: Peter DiCampo / Oxfam America

 

 

 

 

 

 

 

 

 

 

 

4. Selling at the market 

Market

 

Since she received an Oxfam cash grant, this market vendor in Darfur is able to support her children, brothers and sisters. Photo: Elizabeth Stevens/Oxfam America

 

 

 

 

 

5. Fetching water

Fetching Water

 

Jainaba Bojang carries a tub of water home from a bore hole and water pump in the village of Oupat, Gambia. Photo: Rebecca Blackwell:Oxfam America

 

 

 

 

 

 

6. Chopping and gathering firewood

Firewood

 

Howa Abdullha comes back to Kebkabiye, North Darfur, carrying firewood she has gathered outside town. Photo: Eva-Lotta Jansson / Oxfam America

 

 

 

 

 

 

 

 

 

 

 

7. Laundry

Laundry

 

Hencia Josena does laundry at work in a Haitian hospital. Photo: Liz Lucas/Oxfam America

 

 

 

 

 

 

8. Maintaining the house

House

 

Members of Ratnaweera family stand outside their new house in Sri Lanka.  Photo: Atul Loke/Panos for Oxfam America

 

 

 

 

 

 

9. Growing crops for food

Food

 

This Cambodian farmer used system of rice intensification (SRI) practices to cultivate rice. Photo: Patrick Brown/ Oxfam America

 

 

 

 

 

 

10. Caring for elders

elders

 

These three elders at the Internally Displaced Persons Magunga Camp noted that they had family looking after them. Photo: Liz Lucas/ Oxfam America

Defending community rights in Ghana: 3 Lessons for us all

April 29th, 2013 | by

“You cannot link the extraction of minerals and community development—not at all,” says Augustine Niber.

Augustine Niber, Executive Director of the Centre for Public Interest Law in Accra, Ghana. Photo: Jennifer Lentfer / Oxfam America

Augustine Niber, Executive Director of the Centre for Public Interest Law in Accra, Ghana. Photo: Jennifer Lentfer / Oxfam America

Earlier this month, Oxfam America’s Extractive Industries campaign had the privilege of hosting Niber in Washington, DC to participate in a series of events, including an Oxfam-sponsored panel on land, natural resources, and food justice during Ecumenical Advocacy Days and the launch of an Oxfam report measuring the effectiveness of National Human Rights Institutions that features a case study in Ghana.  Here in the Oxfam offices in DC, amidst all his other activities, I had the opportunity to sit down with Augustine Niber and learn more about him, his work, and the issues communities affected by mining face in Ghana.

Founded in 1999, CEPIL is a non-profit public interest and human rights NGO and one of CEPIL’s key initiatives, the Mining Communities Human Rights and Legal Support Program, has provided free legal services, including court room representation, to communities negatively impacted by mining companies in Ghana. CEPIL also provides legal literacy training and human rights education to these communities to enable them to demand their rights.

“For state institutions in Ghana, the driving force has always been to promote mining activity,” says Niber, “but that type of development paradigm has not succeeded.”

So what does bring about development for communities affected by mining?

Below are three lessons I took away from hearing more about Augustine’s experience as a lawyer and an advocate, pertinent even beyond the mining sector:

1. Good governance and transparency are key.

Ghana is often referred to as the beacon of democracy in Africa. Niber shared that this has fostered a shift in the space for debate on extractive issues, and the role of civil society in this debate.

“The democratic environment we have enjoyed for twenty years now is a factor. Before, if you spoke about mining, you were seen as anti-development. Government has come to realize that civil society organizations working on extractive industries issues are not anti-development or mining, but development partners.”

Civil society participation and pressure have played an important role in pushing forward legislation promoting transparency of extractive resources revenues, particularly regarding oil extraction, which is relatively new to Ghana.

“As civil society organizations, we are working to ensure that the nature of violations for community rights in solid mineral extraction do not happen in oil extraction. Oil revenues should not be misused the way mining revenues have been used.”

Indeed, Ghanaian civil society was deeply involved in moving the passage of the Petroleum Revenue Bill in 2011, requiring petroleum revenue receipts and expenditures to be made public. The bill also called for the creation of a Public Interest and Accountability Committee to independently monitor and regulate the sector.

But Niber cautions that transparency is only the first step to accountability.

“Transparency is an important policy initiative, but it is not just about the policies in Ghana. It is about implementation of the policies.”

2. Community consultation and consent are key.

“Communities are not benefiting [from the industry]. [They] are not part of the decision making process. There have been human rights violations where community members have lost farmland.”

Artisinal miners working in the tailings impoundment of AngloGold Ashanti's Obuasi Mine in Obuasi, Ghana. Many artisinal miners in Ghana are farmers that have been displaced by large scale mining. Oxfam America is working in Ghana and other countries to help protect rural agricultural livelihoods from the negative impacts of mining and to ensure that mining contributes positively to rural development. Photo: Keith Slack / Oxfam America

Artisinal miners working in the tailings impoundment of AngloGold Ashanti’s Obuasi Mine in Obuasi, Ghana. Many artisinal miners in Ghana are farmers that have been displaced by large scale mining. Photo: Keith Slack / Oxfam America

The extraction of natural resources can only contribute to development if a community’s fundamental rights are respected, Niber explained. The lack of consultation and consent often leads to the displacement of communities without just compensation. Niber also explained that some community members take part in “galamsey”, or artisanal mining, which can be a very dangerous undertaking.

“These community members are often harassed by state and private security employed by mining companies. Communities become disgruntled and protest. Some people have gotten shot.”

In addition, mining companies often fall short in their promise of jobs for the communities in which they operate. This can also create tension and unrest between the communities and the extractive companies. This is why Niber says companies and governments should be required to obtain the Free, Prior and Informed Consent (FPIC) of communities affected by oil and mining activity.

3. Taking the long view is key.

Achieving true, long-term social justice cannot be done overnight, something Niber knows all too well. Providing legal assistance and court representation for individuals and communities negatively affected by mining is a lengthy process, and a case can easily last a few years before a decision is reached.

“There are delays. Companies and their lawyers know how to frustrate the cases through the legal process and court system. It is possible to cause litigation fatigue with vulnerable communities.”

Though attaining results can take a long time, the payoff can be great and well worth the effort and wait. Such is the case with Niber’s most memorable case at CEPIL. “It was against the [Ghanaian] Environmental Protection Agency (EPA) and a defunct company that operated and left. The Minerals Commission, [responsible for the regulation and management of the mineral resources of Ghana], and the government were held jointly responsible for the destruction that took place.”

The effects of this case went well beyond mining. “CEPIL instituted the case in our name and the court ruled in our favor. The case has become a precedent that other civil society organizations are now using, and it has expanded the frontier of jurisprudence of Ghanaian courts.”

(Bonus lesson!) 4. Bringing global pressure is key.

Niber said that global pressure is important to his work, and encouraged us that here in the US, we can play a part. We can push our policy makers in DC to encourage African governments to agree to a common mining code in ECOWAS, push to protect the 1504 transparency provision, and pressure API to drop the lawsuit against it.

Oxfam has been supporting CEPIL since 2006. To learn more about their work, see: www.cepil.org.gh

The Growing Battle between Mining and Agriculture

April 17th, 2013 | by

By Keith Slack, Global Program Manager, Extractive IndustriesThis post originally appeared on the blog of the US Institute of Peace’s International Network for Economics and Conflict.

“Si a la vida, no a la mina” (Yes to life, no to the mine) is a rallying cry heard across many parts of rural Latin America these days. Mining, as well as oil and gas extraction, has exploded across the region in the last decade, driven by high prices for gold and industrial metals like copper that are needed primarily to feed the Chinese economy. This boom has also been experienced in Africa and Asia, where governments have sought to exploit their resource endowments to drive development. Fragile states like SudanBurma and Afghanistan have also begun to develop their mining sectors. The expanding mining sector has contributed to strong economic growth in some countries but has also generated social conflicts in rural areas that must be urgently addressed.

Area near Tintaya Copper Mine (Espinar), Cusco, Peru. Photo: Chris Hufstader / Oxfam America

The heart of the issue is that mining activity has come into direct competition with another predominant means of economic development in rural areas: small-scale agriculture. Tensions over control of land and, most importantly, water have led to community protests and violent conflict. Reconciling these two important development drivers has become a critical governance issue, particularly in the most fragile states where the conflicts between the two can often be seen most starkly.

In theory, both mining and agriculture can provide pathways out of poverty. The World Bank and development-focused academic researchers have emphasized the critical role of agriculture in promoting rural development. (Three-quarters of the world’s poor live in rural areas.) Agriculture provides direct benefits to those who engage in it. Farmers receive payments for crops they produce, which they can then use to invest in future production and to pay for their families’ basic needs. Mining can also play a role in promoting development, although more indirectly, by generating revenues for governments. Governments can use taxes and royalties paid by mining companies for infrastructure investments and other productive purposes. Mining companies also pay for community development programs, build schools and roads, and make other investments.

Unfortunately, the compatibility of these two development paths, which tend to take place in the same rural areas, is at best questionable. Mining generates significant “externalities,” e.g. water pollution, that can have a direct impact on agricultural production. These negative impacts can be permanent and render previously fertile agricultural land unusable. Mining also requires large amounts of land that could otherwise be used for agricultural production. This sets up a direct competition with small-scale agriculture for control and use of land. In some countries such as Ghana, farmers displaced by mining projects turn to small-scale mining as a replacement livelihood. This can perpetuate a cycle of poverty and conflict in which these farmers-turned-miners are forcibly evicted and beaten by police for coming onto land claimed by large-scale mining projects.

Mining companies argue that mining and agriculture are not necessarily incompatible. But there are few examples of where this has been the case, particularly in developing countries, where oversight of the mining industry is often very weak. Finding ways to reconcile these two economic activities is urgently needed to reduce conflicts and ensure that mining’s benefits contribute to long-term sustainable development in rural economies.

Communities relocated to make way for gold mines in Ghana struggle with loss of agricultural land, unemployment, and environmental damage. Photo: Neil Brander / Oxfam America

Governments and companies should take specific steps now to address this situation. First, the environmental impact assessment process for mining projects needs to be significantly strengthened and made more independent. At present, governments rely on information provided by companies, which is most often not reviewed by an independent third-party. Companies thus have an incentive to downplay potential impacts of their operations on land and water in agricultural areas. In countries such as Peru, local agricultural communities’ lack of confidence in these environmental reviews contributes to anxieties about the impacts of mining, which in turn contributes to conflict. Additionally, mining is increasingly done in “clusters,” meaning several mines operate in the same geographic area in order to take advantage of shared infrastructure and processing facilities. The cumulative impacts on land and water of several mines operating in the same area have not been thoroughly examined. The use of what are known as “strategic” environmental impact assessments, which take into account these cumulative impacts, would be an important step to increasing communities’ confidence.

Improved planning on how land will be used is another crucial step that governments should take. Mining concessions are often awarded without consideration for impacts on agricultural production. Later this year Oxfam America will publish research that shows graphically how mining and oil concessions have expanded dramatically in recent years in agriculturally productive areas of Peru and Ghana. Zoning land for particular uses, e.g. mining or agriculture, would help reduce conflict by establishing clear rules for how land will be used. Greater dialogue between the mining and agricultural sectors would be helpful. In Peru recently, the mining and agriculture ministries have signed a cooperation agreement. This is potentially a positive, although overdue, step.

Reconciling mining with agriculture in developing countries, particularly in the most fragile states, won’t be easy. It may ultimately require the admission that the two simply are incompatible over the long-term in particular areas. What is clear is that these discussions are urgently needed now so that conflict and violence produced by the juxtaposition of these two sectors diminishes and that countries can benefit from both their above-and below-the-ground resources.

Social conflict, extractive industries, national human rights institutions and most importantly…communities

April 9th, 2013 | by

Emily Greenspan is an extractive industries policy and advocacy advisor with Oxfam America.

Oxfam America’s Extractive Industries Team today released new research:

Human Rights and Social Conflict in the Oil, Gas, and Mining Industries: Policy recommendations for national human rights institutions.

Let me try to break down what the paper is all about.

Godfried Ofori, of the Concerned Citizens Association of Prestea, stands in front of a mine pit and waste dump area near Golden Star Resources mine in southwest Ghana. Photo: Jane Hahn / Oxfam America

What do we mean by social conflict?

More than 500 protesters took to the streets in Prestea in the western region of Ghana in 2005 to demonstrate against Bogoso Gold Mines (a subsidiary of Golden Star Resources), resulting in injuries to seven protesters. Tensions grew as a result of alleged water pollution and damage to homes from mining explosives and eventually led to project suspension.

Social conflicts and controversies surrounding large-scale oil and mining projects often stem from concerns around potential or actual environmental impacts and land acquisition disputes, and sometimes erupt into violence. Past Oxfam blogs have highlighted examples of this in countries where we work like Peru and Ghana.

Oxfam America’s recommendations for companies and government agencies charged with managing the oil and mining industries primarily aim to increase community participation in decision making around projects, and ultimately at preventing social conflicts. National human rights institutions (NHRIs) represented one interesting policy avenue that we had yet to address.

What do we mean by a national human rights institution?

State-sponsored NHRIs–tasked with protecting and promoting human rights– have grown in popularity in recent decades. To date, the UN International Coordinating Committee on NHRIs has accredited 99 of these institutions globally. The closest equivalent agency in the US would likely be the US Commission on Civil Rights, which is tasked with informing national civil rights policy and studying alleged deprivations of voting rights and discrimination.

While NHRIs take on a diversity of forms and functions, they will often provide human rights education, hear human rights complaints, mediate complaint resolution, and/or enforce remedies. Some of these institutions are charged with a narrow mandate to protect the human rights of particular groups (e.g., minorities or persons with disabilities) or to protect particular rights (e.g., anti-discrimination), while others have a broad mandate to protect and promote all human rights for all persons. Some NHRIs, like Ghana’s, have a formal mandate to investigate complaints about human rights abuses by private entities, including businesses, while others do not.

In the context of the extractive industries, NHRIs may be called on to address a wide range of human rights abuses. These could include, for example, impacts on the right to property such as by forced displacement or damage to crops or houses, or violence directed at local communities by police or security forces.

How can NHRIs better address social conflicts related to extractive industries?

The new Oxfam research launched in Washington, DC today presents a framework for evaluating NHRIs’ impact on promoting and protecting human rights in the context of the extractive industries, and how this framework can be applied in individual country contexts. The research identifies five categories of determinants for NHRI effectiveness: independence, power, promotion, empowerment, and remediation. These were based on a growing body of literature on effectiveness factors for NHRIs, and then prioritized based on the unique features of oil and mining projects, e.g. their long-term, large-scale nature and their tendency to impact remote and marginalized communities.

An open pit mine in the town of Prestea, Ghana, where Oxfam parter organization, WACAM, has been supporting the Concerned Citizens Association of Prestea in its efforts to negotiate with a mining company around issues related to air and water pollution, and the proposed expansion of mining operations. Photo: Jeff Deutsch / Oxfam America

The research includes a case study on Ghana’s NHRI, the Commission on Human Rights and Administrative Justice (CHRAJ). Based on a literature review and interviews with civil society leaders, mining industry representatives, and CHRAJ officials in Ghana, researchers applied their new framework with CHRAJ to come up with recommendations to strengthen its effectiveness in the mining and emerging oil sectors. Results indicate that CHRAJ should develop a systematic and targeted strategy for communicating with communities affected by oil, gas, and mining operations. Information provided by CHRAJ should ideally provide community members with a clear understanding of their rights, how extractive projects may violate them, and how to seek remedy if these rights are violated.

 

Why should NHRIs engage more with communities?

While the new framework for evaluating NHRI effectiveness will generate different results based on differing country contexts, the finding in the Ghanaian context that community engagement should be a key priority for NHRIs will likely resonate in many of the countries that experience human rights abuses and conflict around mining and oil projects. Often the complex impacts of extractive projects are difficult for community members to anticipate or respond to, particularly when they involve politically-charged issues such as resettlement or technical issues such as water pollution from mine runoff. When NHRIs engage with more informed and active communities, they will find their education and enforcement mandates much easier to fulfill.

If more NHRIs begin to effectively and proactively engage with project-affected communities in preventing human rights abuses and conflict, not only local communities and host governments will benefit. The global community will also benefit from the subsequent increase in stability around the extraction of the oil and mineral resources on which we all rely.

The Farmers Behind the Brands

March 12th, 2013 | by

Erinch Sahan is a Private Sector Policy Advisor at Oxfam Great Britain.

Badou Allouko on her farmland, where she grows cocoa to sell and vegetables for personal consumption, in Sankro, Ivory Coast in January. Photo: Peter DiCampo / Oxfam America

In a world where demand for agricultural production is growing, but supply is failing to keep up, small-scale producers are critical to our food security. With the right investment and inclusive business approaches, small-scale farmers can be immensely productive and a reliable source of supply.

Small-scale farmers are also becoming critical to the ‘Big 10’ food and beverage companies. Oxfam assessed how the policies and commitments of the Big 10 stack up in our Behind the Brands report. We found that most of the Big 10 are missing the mark in ensuring a fair deal for small-scale farmers. This is a missed opportunity, not only because small-scale producers are central to the supply-security concerns of the Big 10, but also because rural economic development is so strongly linked to small-scale agriculture.

Here’s the development case. While the world produces more than enough food to feed everyone, 900 million people go to bed hungry each night. 80% of these hungry people live in rural areas, mostly working as small-scale producers. As Bill Gates said in 2009 at the World Food Prize ceremony:

“Helping the poorest smallholder farmers grow more crops and get them to market is the world’s single most powerful lever for reducing hunger and poverty.”

 

There are over 400 million small-scale farms on which 1.5 billion small-holder and landless farmers earn their livelihoods and grow their food. Some of these farmers are able to crack into the global supply chain. Too often, these ‘lucky’ few are left baring disproportionate levels of risks and costs. The vast majority are left behind, excluded by business models that fail to invest in and adapt to the realities of small-scale agriculture.

Among the Big 10, Unilever tops Oxfam’s Scorecard on farmers with a score of 7 out of 10. Mars and Nestle come equal second, with a score of 5. Unilever is distinguished mostly by its Sustainable Agriculture Code, which sets out guidelines and requirements for suppliers of Unilever to meet. As most of the Big 10 don’t deal with small-scale farmers directly, it’s the standards they require of their suppliers that matters most. Unilever’s code asks suppliers to work with producer organisations and provide training to small-scale farmers, as well as having specific clauses dealing with profit margins and local market opportunities for small-scale farmers. However, most supplier codes of the Big 10 do little nothing to single out any support or protection for small-scale farmers.

Oxfam hopes to see the Big 10 improve their policies and commitments to small-scale farmers in their supply chains. It starts with understanding the needs of these farmers and knowing where they are. Small-scale producers too often bear disproportionate risks and costs, but profits fail to trickle down. The Big 10 need to use their power and influence to stop this injustice. Most critically, the Big 10 need to make absolutely clear that they expect small-scale farmers to be treated fairly by all suppliers. Taking a strong stand on this in their supplier codes is an important step we hope more of the Big 10 take.

Who among the Big 10 will challenge Unilever for the top-score on farmers? Bragging rights is up for grabs.

***

This post by Erinch Sahan is part of a Behind the Brands blog series on Politics of Poverty that examines the seven issues relating to poverty and big food companies’ supply chains. Read more on landwomentransparencywaterworkers, and climate change!

From Earnestness to Action

March 8th, 2013 | by

Yesterday Oxfam received a response to its call to action from Nestlé, one of the three chocolate companies we’ve engaged on behalf of women cocoa farmers. We welcome Nestlé‘s letter as an indication of Nestlé‘s intent to do more for women cocoa farmers and workers. Nestlé‘s Executive Vice President for Operations, José Lopez, indicates an earnest seriousness on behalf of Nestlé to take these issues and Oxfam’s call to action. However, it does not go far enough in making a strong commitment for women’s empowerment.

N'Dri Chantal Konan, age 70, separates the pulp from cocoa in Allahteresekro, Ivory Coast in January 2013. Photo: Peter DiCampo / Oxfam America

Firstly, if Nestlé were truly ready to do something for women, why not start with committing to the UN’s Women Empowerment Principles? This would go a long way toward showing Oxfam, consumers, and most importantly the women in Nestlé‘s supply chain that they are committed to tackling gender issues. In 2012, Nestlé did conduct an assessment of Nestlé’s cocoa supply chain with the Fair Labor Association in Cote d’Ivoire, as well as recent consultations on child labor. Their letter to Oxfam indicates a willingness to consider the recommendations on women in that report, but does not yet commit to knowing and showing what is happening to women more broadly in their cocoa supply chain by conducting a separate assessment.

Furthermore, we are not surprised to hear that members of the cooperatives involved in Nestlé‘s Cocoa Plan are almost all men. That is precisely the problem. Nestlé and other chocolate companies shouldn’t just accept this, but rather incentivize its suppliers to more actively include women in co-ops, and particularly in decision-making processes. Nestlé must be more active in targeting training for women farmers, recognizing the critical role they play in pre and post-harvest.

Nestlé indicated in the letter that they will come with a detailed plan in some weeks. We are looking forward to the reviewing the plan and the necessary actions.

Behind the Brands: Can cocoa companies do more for women?

March 8th, 2013 | by

My colleagues and I were surrounded by women dressed in their best. Their colorful, patterned pagnes, or cloth wraps, were everywhere I turned in the village of Kouadioyaokro, Cote d’Ivoire (Ivory Coast). I was in West Africa in January to listen to women cocoa farmers about their roles in the supply chains that result in my favorite chocolate treats.

Etchi Avla on her cocoa farm in Botende, Ivory Coast in January. Photo: Peter DiCampo / Oxfam America

Cote d’Ivoire is the world’s top cocoa exporter, producing about 40 percent of the world’s crop, and used to make the mass-produced foods like candy bars and chocolate milk you find at your neighborhood grocery story. The United States imports more than half of its cocoa beans from the West African country—three times more than from the runner up, Ecuador. The vast majority of cocoa production comes from small farms of less than 5 hectares in size. These farms are, for the most part, owned and operatedby men.

It seemed every woman that lived in the village showed up to our meeting in Kouadioyaokro. These women were ready to be heard and to be recognized! While women play essential roles in farming cocoa, their work traditionally has been undervalued, ignored, and often underpaid.

Through our discussions, we found little evidence on the ground that the international food and beverage industry are doing its part to uplift the livelihoods of female smallholder farmers in the cocoa industry. Extraordinary profits from cocoa are built on the labor of millions of women (and men) living in poverty like those whom I encountered in Cote d’Ivoire.

 

Oxfam last week released its Behind the Brands report. The report contains a Scorecard that ranks the top 10 food companies on seven themes: workers, farmers, women, land, water, climate and transparency. one key area where companies were failing—women.

Women represent at least half of the workforce in agriculture and women’s work in agriculture is often not visible, or simply not valued, despite the immense physical and inner strength required by the women with whom I met in Cote d’Ivoire. Complex and long-standing gender divisions result in women being excluded from more profitable aspects of agricultural enterprises. Women have limited access to resources such as land, credit, technical agricultural support, social security, and other services. They do unpaid work at home, face high levels of illiteracy, and lack bargaining power. They often face discrimination and unequal treatment on commercial farms, limiting their access to resources, equal wages, training, and leadership positions.

The greatest paradox is that women are often the key to food security for their own families. For this reason, Oxfam would like companies to begin the race by improving their policies and practices that affect female smallholder farmers.

Companies can begin by engaging with people like Olga Rosine Adou, the founder and president of the cooperative, COOPASA, in southeastern Cote d’Ivoire. When we met, Olga told us that cocoa companies could help her and other women cocoa farmers in her community.

“We want these conditions to get better. We want men to understand that women can do what men do. With international pressure, things will start to change.”

Oxfam is calling specifically on the three largest cocoa sourcing companies in the world—Mars, Mondelez and Nestle—to do more for women cocoa farmers. These companies must:

#1 Look: ‘Know and show’ that women are treated fairly by assessing and reporting on the economic and social status of women in cocoa supply chains.

#2 Listen: Respond to the demands of women in cocoa supply chains and make public commitments to protecting women’s rights and ensuring opportunities for female smallholder farmers.

#3 Act: Take concrete steps to redress gender inequities in the company’s cocoa supply chains and influence others to do so as well.

This International Women’s Day—March 8, 2013, let’s take a stand for women who work on cocoa farms, and those facing inequalities around the world.

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This post by Irit Tamir is part of a Behind the Brands blog series on Politics of Poverty that examines the seven issues relating to poverty and big food companies’ supply chains. Read more on landfarmerstransparencywaterworkers, and climate change!

Is sustainability just a sideshow at African mining conference?

January 29th, 2013 | by

A guest post by Keith Slack, Global Program Manager, Extractive Industries

Mining industry big-wigs will gather in South Africa next week for Mining Indaba, billed as the “world’s largest mining investment conference.”  As has become de rigeur in recent years at this kind of event, there will be some discussion of social and environmental “sustainability” issues.  The final day of the event is in fact devoted to this and boasts an impressive-sounding set of panels featuring mining company CEOs, World Bank executives, government officials, and a smattering of NGOs.  This is consistent with a recent spate of mining sector sustainability initiatives including, among several others, the International Council on Mining and Metals’ Resource Endowment series, which looked at how mining can contribute more to economic development.

While this attention to sustainability is in general positive, it hasn’t driven the fundamental change in industry practice that is urgently needed.  US-based Newmont Mining’s history in Peru is one example.  Following a series of problems in Peru and elsewhere in the mid-2000s, the company commissioned a report that produced recommendations on improving its relationships with local communities.  The company’s implementation of these recommendations has been spotty at best.  Last year it was forced to postpone its massive Mina Conga project in the face of community opposition.  In December the company released another damning external review that described a “state of fear” among communities living near the mine.  Clearly the learning from past reviews hasn’t sunk in with company management.

To address this situation and the critical sustainability challenges facing the mining sector, we offer a few recommendations for the mining execs gathered in in Cape Town to consider as they schmooze, golf, and down some of those delicious South African red wines.  (Goats do Roam is my personal favorite.)

Dominic Nyame, a member of the Concerned Citizens Association of Prestea, an organization in southwest Ghana negotiating with a mining company around issues related to air and water pollution, and the proposed expansion of mining operations. Photo: Jeff Deutsch / Oxfam America

First, mining companies need to start fully respecting community consent.  While industry rhetoric on this point has improved significantly in recent years (which Oxfam has highlighted in a recent report), good examples of implementation are still lacking. Industry types often make the practice out to be more difficult than it really is and worries about communities vetoing a project are overblown.  Newmont’s problems at Mina Conga in Peru exist not because communities there are inherently anti-mining.  Rather they stem from the company’s bungled handling of community relations (by its own admission) during the early days of its presence in the community.  Getting these relationships right from the beginning and actively addressing to community concerns are critical to avoiding these problems.

Ensuring respect for the rights of women in the communities where companies operate is also critical for ensuring sustainability.  Women are often the guardians of communities’ long-term interests.  They suffer most directly from the negative impacts of mining, via the domestic violence and alcoholism to which mining often contributes.  Mining companies must carry out more rigorous and independent gender impact assessments.

Transparency has become somewhat of a cliché in discussions of sustainability in the extractive industries, but it’s an area, like women’s rights, where much work still remains to be done.  Mining companies should fully disclose all payments they make to governments – down to the project level where their impacts are felt.  To its credit, the mining industry hasn’t joined the American Petroleum Institute’s odious lawsuit seeking to block a new US law requiring these disclosures.  This is positive and should be coupled with all companies publicly embracing the law and disclosing this information beginning this year.

The thirsty folks gathered in South Africa will know that there is no sustainability issue more critical to the mining industry than protecting water resources.  South Africa itself is awash in acid mine drainage, or sulfuric acid that leaches out of mine sites and destroys ground and surface water.  This problem is a ticking time bomb in developing countries and it is incredibly expensive to fix once it starts.  Once it does, the acid needs to be treated forever.  Mining companies have the technology now to know when mining in particular ore bodies is likely to cause this problem.  They also know they shouldn’t mine there.

Finally, if mining companies want to contribute more to sustainable development, they should accept the fact that that may mean reduced profits for themselves.  Mining companies are masters at negotiating deals that enable them to avoid paying significant amounts of taxes.  In contract negotiations, industry lawyers routinely take under-trained and under-resourced government officials to the cleaners.  Yes, companies should be able to make profits, but they shouldn’t do so by exploiting unfair advantages.

Ultimately, making progress on these issues will depend on the degree to which mining companies incorporate community consent, the rights of women, transparency, and protection of water resources into their business models.  Creating incentives for performance on these issues will be critical.  Investors can play a role by only buying shares of companies with independently-verified performance metrics on sustainability, including demonstrable progress on the issues listed above.  Companies themselves can link compensation and career advancement to performance on sustainability.

It’s time for sustainability to become a central part of mining industry standards in Africa and elsewhere, rather than a sideshow.

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