ASM Local Governance Challenges Issues, Lessons and Recommendations - - PowerPoint PPT Presentation

ASM Local Governance Challenges

Issues, Lessons and Recommendations

Patience Singo, Governance Advisor

ASM Local Governance Context

• ASM local governance - political and institutional

processes for decision making and implementation (legalisation and formalisation)

• Effective governance characterised by free and

active participation, accountability, transparency and respect to the rule of law.

• Good local governance should deliver on

economic development, efficient management and administration, social inclusion and environmental sustainability.

ASM Governance Challenges

• Illegality and informality- Most ASM is illegal and informal
• Resource conflicts - mining companies, miners, farmers, other land users
• Illegal/illicit trade of minerals- local mineral production unaccounted

for, grey economy, revenues missed, financing of armed groups.

• Tax/fees evasion - local levies and resources access fees
• Human rights/Social security- safety, health, child labor, gender issues
• Environmental impacts - poor environmental practices, sustainable

management of resources

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Political and Administrative Challenges

• Political will- to implement ASM legal framework
• ASM management capacity - to provide services, sector management
• Integrating the sector into local development agenda- Promoting its

potential for development and livelihood resilience.

• Well managed ASM can develop into small enterprises
• Donor dependency- abdication of local government roles; donors more

active than local government; sustainability risk

• Cash cow mentality- Limited fiscal resources in local areas, corruption
• Human rights/Marginalization- crack down, indiscriminate arrests, top

down decisions

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Governance to economic development- Gold ld supply ly chain ins

In 2010 legalized ASM, 2014 created ASM gold trading legal framework. Until 2014 the ASM gold production was not accounted for; Royalties reduced from 10% to 2.5% and host of other measures Currently one province is collaborating with partners to set up one stop gold buying center/refinery. So Source; SAM Proje ject

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Experiences and Lessons Learned

• Political will and ownership- Bilateral leverage/support
• Understanding of economic potential of the sector- conditions for

economic linkages

• ASM Management Capacity and resourcing is key
• Respect for human rights- employment, property rights, vulnerable

groups

• Simple formalization, taxation procedures
• Good ASM practices encourage positive stakeholder influences
• Advocacy and empowerment of different actors

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Recommendations

• Capitalize on more than 16 years of ASM experience in Latin America and

Mongolia- many lessons, not much known!

• Mainstream Human Rights Based Approach and explore ASM potential

for local economic development- business development.

• Regional approach for increased impact and cross learning
• Explore greater private sector role in supporting ASM initiatives.

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ASM Governance Support; Entry ry Points

Government, Administration ASM Communities Advocacy on legalization and sector’s potential for economic development. Increased knowledge of ASM legal and policy framework Advocacy and empowerment Strengthen capacity to implement legal framework and provide services (health, safety, environment, responsible supply chains ); Institutional strengthening Strengthen capacity to demand services, procedures and compliance and training Capacity to engage in responsible mining Facilitative role with private sector and ASM Multi-stakeholder platforms Regional collaboration on ASM supply chains and harmonization of fiscal regimes Pilot mineral supply chain initiatives Integrate ASM in poverty reduction and local development strategies; Understanding of sector potential Local investment, livelihood diversification, value addition, linkages Capacity to deliver on Human rights and gender sensitive services Gender mainstreaming, child protection and vulnerable groups 8

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