The World Summit on Sustainable Development in Johannesburg clearly identified the corporate sector as one of the key actors in the delivery of national and international poverty reduction targets in developing countries. "Partnerships" between government, civil society and business were proposed as one means whereby these poverty reduction targets were to be achieved. Despite the rhetoric, there was less consideration of how such partnerships could work in practice, the outcomes that could be achieved, or the relative merits of partnerships over other, more traditional approaches to development.
This book is about partnerships between the private sector, government and civil society. Its objective is to share practical experiences in establishing and implementing such partnerships and to show how partnerships work. The focus is on the oil, gas and mining industries, as these sectors have tended to be the primary drivers of foreign investment in developing countries. These corporations increasingly operate in regions characterised by poor communities and fragile environments. The more effective use of external relationships to ensure the effective contribution of these investments to poverty reduction and local environmental management is critical, for the companies, for government, and for the poor.
Putting Partnerships to Work is based on the work of the Secretariat of the Natural Resources Cluster (NRC) of Business Partners for Development (BPD). This major research programme, which ran from 1998 to 2002, aimed to enhance the role of oil, gas and mining corporations in international development. The programme objective was to produce practical guidance, based on the experience of specific natural resource operations around the world, on how partnerships involving companies, government authorities and civil-society organisations can be an effective means of reducing investment risks and of promoting community and regional development. The programme encompassed partnerships in Colombia, Nigeria, India, Venezuela, Bolivia, Zambia, Azerbaijan, Indonesia and Tanzania. The specific projects that were implemented included not only "traditional" development projects such as the provision of water, healthcare or infrastructure but also themes as diverse as conflict prevention, regional development, micro-enterprise development and managing oil spill compensation. Based on the experience of establishing and implementing effective partnerships, the NRC identified good practice, and developed replicable guidelines, tools and training materials.
This book is not only about good practice; it presents both the positive outcomes and lessons from the programme, as well as the risks and costs, and where things went wrong. It also provides evidence not only of the viability of partnerships (i.e. that partnerships "can work") but also evidence that partnership approaches can provide substantially better outcomes for all parties than can more traditional approaches to development or corporate social responsibility. For example, a road in India was constructed at 25% of the cost to government; it took just 11 months for a community health centre in Venezuela to become operational and with its long-term financial future assured; and primary education enrolment rates in the vicinity of a gold mine in Tanzania have jumped from a historic level of 60–80% to almost 100% (as a consequence of improved infrastructure and community awareness of the importance of education). These development and public-sector benefits have been accompanied by substantial business benefits, including significant reductions in the cost of community development initiatives and/or the leverage of additional resources, greater sustainability and viability of development projects and significant improvements to corporate reputation and their local "social licence to operate" with communities. The book argues that to achieve these benefits requires all parties to invest time and effort in first exploring the best design for the partnership, understanding the motivations of their potential partners and, once the partnership has been established, continuing to actively support the partnership and ensure its ongoing viability.
Partnerships that engage the strengths of companies, government and civil society can, under the right conditions, yield better (and more sustainable) results for communities and for business than traditional approaches to development. The authors argue that, because it is built on the central idea of each partner "doing what they do best", the partnership approach offers an opportunity to rethink the way in which companies view they contributions to the livelihoods of local communities. Through partnerships it is possible that community development will be seen less as an "add-on" or "cost" to the company but more an integral part of business strategy providing significant commercial and other benefits.
Perhaps most importantly, partnerships offer the potential for regional operating companies to change the perceptions of government and of civil society that the company will take the primary responsibility for local development. Rather, partnerships enable companies to locate themselves as one of (but not the only) agent of development in the local region. Partnerships enable communities to take charge of their own development needs, interacting with government to jointly design and maintain public services. They also allow government to play its proper role of fulfilling its public mandate, delivering necessary services and ensuring the quality and sustainability of development impacts.
The challenges of poverty reduction in the developing world are so great that no one sector can address them on its own. Partnerships between business, government and civil society are a means of addressing this most fundamental of truths. It is hoped that this book will provide a road map for all those working towards making the elimination of poverty a reality.
Table of Contents
Preface Michael Warner and Rory Sullivan 1. Introduction Rory Sullivan and Michael Warner 2. Building Blocks for Partnerships Michael Warner Part 1: Case studies 3. Shell Petroleum Development Corporation, Nigeria: Partnering and Environmental Impact Assessment Rory Sullivan and Michael Warner 4. Integrated Coal Mining Limited, India: Livelihoods Assessment, Road Construction and Healthcare Rory Sullivan, Santiago Porto and Michael Warner, with Amit Mukherjee, Rajat Das and Joydev Mazumdar 5. Placer Dome and Corporacion Venezolana de Guayana (Minera Las Cristinas CA, Venezuela): Healthcare Partnership James Tull, Edgardo Garcia Larralde, Alex Mansutti and Santiago Porto, with Nicola Acutt, Ralph Hamann and Michael Warner 6. Transredes, Bolivia: Managing Oil-spill Compensation Vicky Copeman and Enrique Rivas 7. BP and Others, Azerbaijan: Conflict Prevention Nick Killick 8. Kahama Mining Corporation Limited, Tanzania: Social Development Programme Rory Sullivan and Aida Kiangi 9. Konkola Copper Mines plc, Zambia: Local Business Development and Partnerships Rory Sullivan 10. Kelian Equatorial Mining, Indonesia: Mine Closure Ralph Hamann 11. BP Exploration Company: Contributing to Long-term Regional Development in Casanare, Colombia Michael Warner, Edgardo Garcia Larralde and Rory Sullivan Part 2: Partnership tools 12. Getting Started Michael Warner 13. Partnership Monitoring Michael Warner 14. Measuring the Added Value of Partnerships Jol Mitchell, Jill Shakleman and Michael Warner Part 3: Issues 15. Towards Evidence of the Costs and Benefits of Partnerships Nicola Acutt with Ralph Hamann, Assheton Carter and Paul Kapelus 16. Ownership and Control of Outcomes Aidan Davy 17. Companies in Conflict Situations: A Role for Partnerships? Aidan Davy 18. Partnerships and Local Corporate Foundations Ralph Hamann, with Nicola Acutt and Assheton Carter 19. Managing Community Expectations through Partnerships Aidan Davy 20. Learning from Project Partnering in the Construction Industry Dom Verschoyle and Michael Warner Part 4: Conclusions 21. Conclusions Rory Sullivan and Michael Warner Appendix A: Example of a Grievance-resolution Process Appendix B: Example of a Partnership Memorandum of Understanding: the Sarshatali Coal Mining Project Partnership for the Construction of a Metalled Link Road from Rasunpur Forest Area to Barabani Railway Yard Appendix C: Example of a Partnership Charter: Charter of the Kelian Mine Closure Steering Committee Appendix D: Checklists of Impact Indicators Appendix E: Examples of Impact Tables: The Tri-sector Healthcare Partnership, Las Cristinas Gold Mine, Venezuela, December 1999 to January 2001 Appendix F: Publications of the Natural Resource Cluster
This book helps substantially in clarifying the partnership idea. It focuses on partnerships in which business and industry have a leading role. This is a book for everyone who is interested in the follow-up of the WSSD: companies, social partnerships, governments and NGOs. Even more widely, this is a book for all those who are concerned about making the reduction of poverty a reality. - International Journal of Environment and Pollution, 5 September 2006
One of the most definitive studies on partnerships to date ... Lots has been said about the benefits of partnerships over corporates going it alone, but rarely is this accepted wisdom fleshed out. - Corporate Citizen Briefing, June/July 2004
... an extraordinary account of four years of very significant work in partnerships and is without doubt an enormously important contribution to developing literature in this field. - The Corporate Citizen Vol. 4 Issue 2 (2004)
This excellent book ... has brought, to development literature and development practitioners, a rich and textured source of practical information and advice on how to put effective partnerships together. It provides direction on necessary conditions for effective partnerships, how to make partnerships thrive, the key pitfalls to avoid, and the the ways to monitor the partnership during development and implementation. For those in the private sector, government and civil society who are trying to address poverty and development challenges, this book is an exceptional business and development tool. - Journal of Environmental Assessment Policy and Management Vol. 7 No. 1 (March 2005)
Putting Partnerships to Work is about how partnerships work, the types of outcomes that can be achieved, and the necessary conditions for partnerships to be successful. - UNEP Industry and Environment, October-December 2004