Mining regions OECD future work programme
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The OECD's implementation plan for mining regions and cities focuses on improving productivity and well-being in areas dependent on mining through multi-level governance, evidence sharing, and collaborative partnerships. The project aims to create a strategic framework to address regional challenges, promote knowledge exchange, and support local economies affected by mining activities. Key activities include organizing events, publishing case studies, and engaging various stakeholders to enhance integration between mining and regional development policies.
Mining regions OECD future work programme
- 1. OECD MINING REGIONS AND CITIES: IMPLEMENTATION PLAN Centre for Entrepreneurship, SMEs, Regions and Cities Organisation for Economic Cooperation and Development May 2018
- 2. 1. Context and background for this work 2. Evidence about regions with a mining specialisation 3. OECD work for mining regions and cities 4. Next steps 2 Presentation outline
- 3. (1) Context and background 3
- 4. • The OECD provides an international forum for governments to work together to share experiences and seek solutions to common problems – it has 35 member countries, and also works closely with a number of partner, accession and non-member countries • We also work with representatives of industry and labour through advisory committees, and are actively engaged with civil society organisations. • A strength of the OECD is the capacity for governments to learn from each other through peer review (whereby each country’s policy in a particular area is examined by fellow members on an equal basis). Our work is supported by data and engagement with stakeholders. • The OECD is overseen by various Committees and working parties, which are made up of delegates from member countries, and non-member countries which are also invited to participate • The Regional Development Policy Committee (RDPC) was established in 1999 and oversees work by the OECD Secretariat in regards to policies related to regions, rural areas and cities (see - http://www.oecd.org/cfe/regional-policy/regionaldevelopment.htm) 4 Organisation for Economic Cooperation and Development (OECD)
- 5. • Issue that affects virtually all OECD member countries – mining of minerals and metals, extraction of coal, oil and gas, and downstream production (investment, production, and decline/ transition) • Challenges associated with mining and extractive activities are amplified at the local and regional scale for example conflicts with other land users, population changes and impacts on housing markets and public services, and structural adjustment and transition costs • Policies related to mining tend to be shaped at the national level with a sectoral focus - trade and fiscal settings, concession and permitting processes, local content – integration with local and regional development strategies can be weak • This centralised approach makes it difficult to manage the territorial impacts of mining, exacerbates challenges and tensions, and leads to missed opportunities and benefits – resulting in problems such as difficulties in securing and sustaining social license to operate 5 Motivation for this work from the OECD Regional Development Policy Committee (RDPC)
- 6. Summary of findings: • Mining is spatially concentrated, often in low density economies – linkages with local economies vary considerably • Strong productivity performance coupled with volatility in growth, inequalities, and local dutch disease effects • Place-based approaches are needed to address these issues – land use and housing, supply of local skills and competencies, and linking local SMEs to mining value chains • Importance of multi-level governance - decentralisation and alignment with revenues and institutional capacities at a sub-national level to support integration of mining with regional development 6 Mining and extractive industries has been a topic of interest for the RDPC
- 7. 1. Objective - The event was designed as a starting point for the creation of a platform to share lessons and develop a strategic framework among mining regions and their cities to enhance co-operation and increase productivity and well-being. 2. Attended by 275 people across 14 countries - Leaders and practitioners from regional and national governments, the industry (mining companies, suppliers, and industry associations), educational and non-governmental organisations, as well as experts on mining and extractive industries across both OECD and non-members countries. 3. Knowledge exchange and identification of good practices - presentations from national and international experts as well as policy and industry leaders; networking opportunities; and learning between jurisdictions 7 1st OECD Mining Regions Event, Antofagasta, Chile, October 2017 Event proceedings can be found here: http://www.oecd.org/regional/regional- policy/Proceedings-OECD-Mining-Regions-Conference.pdf
- 8. 8 (2) Evidence about regions with a mining specialisation
- 9. 9 Mining and extractive activities are spatially concentrated 0 1 2 3 4 5 6 7 8 9 Locational quotient Regional specialisation in industry* (employment), select OECD countries Source: OECD Regional Database. *Industry category in this chart includes mining and extractive activities, energy and water. The locational quotient (LQ) for is the ratio between the sector weight in employment for the region, and the weight of the same sector in national employment. A value above 1 implies that the region is more specialised in that sector than the rest of the economy. LQ scores for Sweden and Finland are 2012, and for other countries 2014.
- 10. 10 Coping with changes in external markets and volatility in regional growth performance GDP growth index, select OECD countries and regions, 2001-2014 (2001 = 100) Source: OECD Regional Database. *25 regions across Australia, Canada, Hungary, Finland, Sweden, the United States. Regions with a locational quotient higher than 2 were included in the sample. Standard deviation of difference in GDP growth (2001-2011) for a larger sample of OECD regions specialised in mining was 28.08 compared to 13.08 for the national level*. 100 110 120 130 140 150 160 170 180 190 200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Canada Newfoundland and Labrador Sweden Norrbottens County United States Wyoming
- 11. 11 High productivity with uneven distribution of benefits 0 10 20 30 40 50 60 70 80 Antofagasta Atacama Western Australia Newfoundland and Labrador Saskatchewan Alberta Northern Territory Percentage GVA - industry Employment - industry Percentage of GVA and Employment, Industry*, select OECD regions (2013) Source: OECD Regional Database. *Includes mining and extractive activities, and utilities.
- 12. State Indigenous population (%) Specialisation in mining and extractive industries Alaska 14.3 4.2 New Mexico 9.1 3.9 South Dakota 8.5 0.7 Oklahoma 7.5 3.6 Montana 6.8 3.0 North Dakota 5.6 4.0 Arizona 4.4 1.2 Wyoming 2.3 5.4 12 Complex land use challenges at a regional and local level Source: US Census Bureau (2013) American Fact Finder and OECD Regional Database (2015). Note: Level of specialisation is a locational quotient a score of 1 indicates the same level of specialisation as the national economy. This categorisation includes mining and extractive activities, and utilities. Indigenous peoples and regional specialisation in mining and extractive activities (United States)
- 13. Key issues Examples Localised environmental externalities Impacts on water quality and availability, run-off and emissions, dust and noise Conflicts with other land users Residents, food producers, tourism operators, and Indigenous peoples Innovation and value- chains Adapting production techniques to local environment conditions, local procurement and supply chain opportunities Local workforce Skills mismatches, access to air services, temporary accommodation and housing, amenities and public services Regional infrastructure networks Bottlenecks in existing transport, energy and communications networks, opportunities for investment and shared use Mining closure and transition Environmental remediation, localised transition and structural adjustment costs 13 Mining is a global business and matter of national interest – but regional and local issues matter
- 14. Dimension Policy objective Action areas (examples) Competitiveness and diversification Producing more value in extractive industries Long-term planning and investment strategies for regional infrastructure networks Diversifying into other economic activities Availability of small scale grants and credit to local SMEs and start-ups Quality of life Enhancing local quality of life Integrated land use and infrastructure planning Making growth more inclusive Entrepreneurship support for vulnerable groups Regional governance Making the most out of fiscal transfers Better link planning and budgeting and allow for multi-year planning and spending of the royalty transfers Developing collaborative institutions to facilitate cluster development Develop a common vision and priorities for regional innovation Integrated planning and community engagement to improve local quality of life Foster urban and rural linkages (e.g. shared governance, service delivery planning) 14 Initial OECD framework for integrating mining with regional development Source: OECD (2016) Mining regions and their cities: scoping paper, http://www.oecd.org/regional/regional- policy/Scoping-paper.pdf
- 15. (3) OECD project for mining regions and cities 15
- 16. 1. Provide a framework for the OECD, the mining industry, national and sub-national governments, and non-government organisations to cooperate on addressing shared challenges related to mining, extractive industries and regional development. 2. Produce a series of publications that deliver regional specific recommendations and implementation support, and a tool-kit (benchmarking and guidance, indicators and data, and best practices) to support the implementation of better regional development policies in a mining and extractives context across countries 3. Develop a global platform for mining regions and cities through events and peer-review that enable knowledge sharing, advocacy and dialogue between public/private sectors and local communities on better policies to enhance regional productivity and wellbeing. 16 Objectives of the project
- 17. 1. Productivity and diversification - Policies that enable the development of the mining industry, that support productivity and also strengthen the supply chain linkages around mining activities and support economic diversification efforts. 2. Quality of life and wellbeing - Policies that enhance quality of life and address inclusive growth and well-being challenges that affect regions and cities with a high degree of dependency on mining and extractive industries. 3. New models of partnership between the private sector and local communities - Good practices that help build and maintain social license to operate for mining and extractive operations at a regional and local level. 4. Sub-national governance and fiscal arrangements - Sub-national governance and fiscal arrangements that address the complex relationships between national and sub-national governments, the mining industry and community stakeholders in relation to issues of economic development and wellbeing. 17 Priority themes that will be addressed by this project
- 18. Events and knowledge-sharing activities: • OECD meetings on Mining Regions and their Cities (1 to 2 per year) to discuss OECD findings, share and identify good practices and promote knowledge-sharing (building on the 1st meeting in Antofagasta, Chile) • Policy Workshops – at existing mining conferences to test analysis and recommendations, and mobilise private sector input and support. • OECD missions (as part of regional case studies) with peer reviewers (public and private representatives from other mining regions and cities), experts to gather data exchange experiences of best practices involving local stakeholders, experts and peer reviewers OECD papers and reports: • Published proceedings from these events that identify good practice actions to enhance the productivity and wellbeing of mining regions and cities, and priority areas for future cooperation • Regional case studies that deliver an in-depth analysis, assessment and recommendations of a mining region and/or city in a national and global context, and also provide a mechanism to monitor and support implementation • Thematic report that will synthesise analysis from across countries and develop a tool- kit containing guidelines, indicators, and good practices about integrating mining and extractive industries, and regional development 18 Project deliverables
- 19. Event Proposed thematic focus Target audience October 2018 - Darwin, Northern Territory • Innovative partnerships: Indigenous people and mining • Economic diversification in urban and remote contexts Australia, SE Asia April 2019 - Skellefteå, Västerbotten, Sweden • Skills supply, and equality and diversity in local mining workforces • Regions and cities supporting environmental sustainability and technological change in mining Arctic countries, Central Asia October 2019 - Seville, Andalusia, Spain • Industrial modernisation and smart specialisation in a mining context • Improving regional level policy, administrative and regulatory support for mining and extractive industries Europe, Central and South America June 2020 - Pilbara, Western Australia • Quality of life, attractiveness and mining cities • Fiscal arrangements and public investment Australia, South America, and China October 2020 - Greater Sudbury, Ontario, Canada • Developing local mining clusters, and the inclusion of Indigenous entrepreneurs • Role of higher education and vocational institutions in regional development Canada, USA, and Francophone Africa 19 Events will have different thematic focus areas and audiences (TBC)
- 20. Centre for SMEs, entrepreneurship, regions and cities: • Regional, urban and rural development policies • Regional innovation policies • Multi-level governance and sub-national finances • Local employment and skills • SDGs and regional development • Migrant integration • Tourism policies • SMEs and local entrepreneurship Other areas • Global value chains, trade and the mining sector (Trade and Agriculture Directorate) • Local content policies (Development Centre, Trade and Agriculture Directorate) • Guidelines for multi-national enterprises and responsible business conduct (Directorate for Financial Affairs) • Energy, communications, and water infrastructure issues (Environment Directorate, International Energy Agency, and Science and Technology) • Engagement with non-member countries (Global Relations Secretariat, Development Centre) 20 The project can mobilise different areas of expertise within the OECD
- 21. • Sub-national governments – municipalities, provincial and state governments, and regional development organisations and agencies • National governments – ministries responsible for mining and extractive industries, and regional and rural development • Regional universities and vocational education providers that specialise in research and skills supply linked to mining and extractive industries • Multi-national and state owned enterprises – mining, oil and gas • Local SMEs providing services to mining and extractive industries • National and local chambers of commerce and industry associations and trade unions • Existing country/ EU based networks of mining cities and regions • Local and regional community and representative organisations – youth, women, migrant groups, and Indigenous peoples 21 The project will seek to engage the following stakeholders We will also aim to create to create platforms for cross-national learning and collaboration, for example, between Indigenous communities, and universities based in mining regions
- 22. Outputs/ activities Outcomes/ benefits OECD Mining Regions and Cities events • Increased awareness and visibility of regional development issues related to mining at a national and international level • Stronger professional networks and enhanced capacities through exchange of lessons and best practices OECD missions • Assessment of policies through peer review by counterparts in other mining regions and cities • New perspectives and dialogue between stakeholders facilitated by the OECD Thematic report • Guidelines/ checklist that can be used by national and sub-national governments, and mining companies to better integrate mining and extractive industries with regional development • Shared indicators and data that can be used to benchmark performance Regional case studies • Objective assessment of policies by an international institution with considerable weight in public policy debates, which can give momentum to reform and implementation efforts • Transfer of knowledge and expertise to implement better policies for mining regions and cities 22 Outcomes/ benefits for participants
- 23. 1. Announce the launch of the initiative along with the 2018 event 2. OECD will work bilaterally with participating regions and cities to begin the first tranche of case studies, and organise events in 2018/2019 3. OECD will work with participating regions and cities to broaden and deepen engagement with this work from: I. Other mining companies operating in the participating regions II. Other mining regions and cities across participating countries III. Existing networks and collaborations of mining regions and cities IV. Chambers of Commerce and Industry Associations V. Non-government organisations and experts VI. Higher education institutions 23 (4) Next steps
- 24. THANK YOU FOR YOUR ATTENTION CHRIS.MCDONALD@OECD.ORG WWW.OECD.ORG/CFE/REGIONAL-POLICY/MINING- REGIONS.HTM 24