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Communities may benefit from oil, gas and mining through direct compensation, royalties, equity participation in joint ventures, direct and indirect employment, business opportunities, enhanced services (health, education), and improved infrastructure. Given that extractive companies tend to play a major role in the well-being of their host communities and rely on them for functional, productive work environments, many corporations contribute proactively to community development surrounding their operations. Whether these contributions yield positive impacts is often determined by the quality of the community development strategy the company, local government and community design and implement together. Two key considerations in the design of such a strategy are local context and the process of working across diverse stakeholder groups. A review of experience has shown that community development interventions yield win-win results when they are grounded in a long-term strategy that integrates the perspectives and skills of companies, communities, and local government. Issues of targeting, representation, prioritization and sequencing are critical. In addition to general principles for effective community development, there are practical tools that can help make implementation successful, such as participatory planning and monitoring.

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Sharing Experiences: Enhancing the Benefits to Communities from Extractive Industry Projects Workshop
19 June 2006
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The objective of the workshop was to share experiences, training, and raise awareness of the community development work that is taking place. The focus was on sharing practical examples of helping communities benefit from extractive industry, highlighting the diversity of community development activities (supply chain, social, environmental issues), and discussing successes and lessons.

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IFC Community Development Standardization

Module 1: Understanding the Business Case (Caroline Ashley)

  • Business Case Matrix, SustainAbility, click here.

Module 2: Diagnostic and Assessment (Tunde Morakinyo)

Module 3: Stakeholder Engagement and Capacity Building (Alan Dabbs)

Module 4: Strategy Design (Alan Dabbs)

Module 5: Implementation Planning and Partnering (Tunde Morakinyo)

Module 6: Monitoring and Evaluation (Tunde Morakinyo)

DISCUSSION FORUM: Influx Management

Questions to Consider

1. It is clear that many aspects of influx management are the domain of local/regional government. To what extent should a Company go beyond promoting awareness of influx issues to managing them?

2. IFC/CommDev is trying to define a typology of influx situations? We would be grateful to receive your thoughts on the following key questions:

  • Location
  • Type of Operation (oil, gas or mining)
  • Stage of Operation (exploration, construction, operations, closure
  • Description of influc phenomenon: Who has arrived? Numbers? Where are
  • they settling? What are they doing?
  • Description of key impacts
  • Any mitigation measures undertaken? Yes/No. If yes, please describe.

Thanks for sharing your thoughts!

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