Local Conflict Management

This Article proposes that extractive industries can tackle the underlying causes of the growing opposition to their projects in the developing world by engaging in consent processes with communities and groups directly affected by projects with a view to obtaining their free prior and informed consent (FPIC). The authors propose that FPIC must be enduring, enforceable, and meaningful in order to take companies and communities out of their current defensive positions. FPIC should instead allow companies and communities to take up proactive positions—with those companies that have the consent of the communities in which they operate obtaining a competitive advantage and those communities that have enforceable agreements with companies obtaining control over the naturalresource- based development process on which their future depends.

The new briefing note addresses systematic approaches to managing social risk and opportunity for large projects. The document summarises lessons from EAP’s extractive industries and public infrastructure programmes, including collaborative research with the Overseas Development Institute (ODI), International Alert and the Actuarial Profession/Institution of Civil Engineers Joint Working Party on Project Risk Appraisal. It also draws on leading thinking on social risk management from organisations such as the IFC, the World Resources Institute and the CSR Initiative at the Kennedy School of Government at Harvard University.

This tool is in draft format and under review. It is intended to provide guidance to practitioners to understand and navigate conflict in community development in the context of the extractive industries sector (e.g., oil, gas and mining). The primary intended audience for the guidance is personnel at extractive companies – including project managers and community relations/sustainable development managers in the field and in headquarters.

The purpose of this Guide is to provide, in a simple and accessible format, basic guidance on risk assessment and risk management in conflict settings that oil and gas companies might face. These include conflicts between companies and local communities which are directly related to the presence and operations of the companies themselves, as well as wider social and political conflicts in which companies are not directly involved but which are very likely to impact on companies operating in such conflict environments.

The Mesa de Diálogo y Consenso CAO-Cajamarca was convened to address and resolve conflicts between Yanacocha, the largest gold mine in Peru, and the surrounding communities affected by its operations. The Mesa sought consensus based solutions under a framework of good faith, cooperation, and tolerance.

This is a set of tools for companies concerned about improving their impact on host countries to begin thinking more creatively about understanding and minimising conflict risk, and actively contributing to peace.

The toolkit identifies the key issues and methods for understanding the common impact of conflict on livelihoods and the ways one can address the most vital needs of those affected by conflict. The toolkit applied livelihoods analysis chiefly in situations of violence or serious conflict involving destruction of homes and displacement of persons.

The Global Compact Business Guide to Conflict Impact Assessment and Risk Management is a practical guide companies can use to assess and manage risk in conflict and conflict-prone contexts; and thereby promote a positive business, social and political environment.