Oil, gas and mining production are major contributors to a nation’s or region’s gross domestic product. In many cases, however, development of extractive industries has not been associated with successful national or local community development. In some cases, communities have been further disadvantaged as a result of oil, gas and mining projects.
In response to concerns from certain stakeholder groups about the nature of the World Bank Group’s involvement in industries associated in some parts of the world with human rights violations, environmental degradation and poor governance, in 2000 the Group embarked on a comprehensive review of its activities; the Extractive Industries Review (EIR). The review aimed to assess the Group’s support of extractive industry projects and the extent to which this support was consistent with the overarching mission to fight poverty. In response to the EIR, the World Bank Group committed to establishing a fund that would facilitate an enhanced contribution to sustainable development at the community level for oil, gas and mining projects. There is growing recognition that engaging, empowering and building the capacity of local communities is critical not only for the success of investments in extractive industries, but also for sustainable development beyond the life of the well, pipeline and mine.
Formally launched in January 2006, the Oil, Gas and Mining Sustainable Community Development Fund (CommDev) is a mechanism to fund practical capacity building, training, technical assistance, implementation support, awareness-raising, and tool development more flexibly and efficiently as an integral part of an extractive industry project, or otherwise, with a particular focus on ensuring that communities benefit from extractive industry developments. The objective of CommDev is to help ensure that local communities benefit in a sustainable way from extractive industry projects. It is intended to enhance, accelerate, and extend the value-added support given to communities beyond the compliance requirements of investment projects. This Information Clearinghouse of experience offers information on community development in the extractive industry sector, drawn from the experience of partner institutions and CommDev-funded projects. This clearinghouse is expected to increase the access of companies, communities, and local and regional governments to practical knowledge and tools for navigating complicated, community-focused, social, environmental and economic development issues.
Featured Objects
International Finance Corporation’s Performance Standards on Social and Environmental Sustainability
International Finance Corporation (IFC) applies the Performance Standards to manage social and environmental risks and impacts and to enhance development opportunities in its private sector financing in its member countries eligible for financing.
Related Items
Centre for Social Responsibility in Mining (CSRM)
The Centre for Social Responsibility in Mining (CSRM) was established by the University of Queensland in 2001 in response to growing interest in and debate about the role of the mining and minerals industry in contemporary society. CSRM’s focus is the socio-economic and political challenges that confront companies, communities and governments when change is brought about by resource extraction.
Sustainability: Extracting the best from Canadian Miners?
On 26 March, the Canadian government unveiled a series of measures to promote corporate social responsibility (CSR) in the extractive sector.
