Lawyers for the National Roundtable on Metalic Mining in El Salvador reacted to the initial hearing, saying that the proceedings ignored the essential role of local communities in determining whether mining projects can or should go forward, and the environmental risks associated with such projects.
Pacific Rim applied for the operating license in 2005 to open a mining project in the department of Cabañas, in the north of the country. It is suing for losses incurred on investments made during exploration work. Pacific Rim filed the suit based on the Central America Free Trade Agreement (CAFTA), specifically chapter 10 on investments and chapter 12 on dispute resolution.
The economic and investment focus of the dispute was heavily criticized by Luis López, a lawyer for the National Roundtable on Metalic Mining in El Salvador. "Environmental issues and the rights of the local communities are not being discussed," he says. "This operating license is being treated as just another permit, without taking into account the fact that this country is very small and densely populated, and those issues [the environment and people’s rights] will only be addressed as secondary issues."
That is why the Roundtable, with the support of Oxfam America and the Center for International Environmental Law (CIEL) will be sending an 'amicus curiae'-- a friend of the court brief-- to the ICSID. This is a way for organizations and people directly affected to get involved in a case of this kind, between a transnational company and a government. "With the 'amicus curiae' we're going to introduce new elements that will have to be taken into account, such as the environmental issue" says López. "We want all aspects of the dispute to be discussed."
A second hearing is scheduled for August, when both parties will produce further evidence to support their positions. The dispute is expected to be settled in August or September of this year.
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Unfortunately, not all indigenous groups participating in these working groups felt that the discussions were productive. AIDESEP, a long-time Oxfam America partner and one of the largest federations representing indigenous peoples in Peru’s Amazon, has withdrawn from the dialogue process, citing lack of progress and reluctance on the part of the government to accept its share of the responsibility for the violence in Bagua.
While indigenous people and the government struggle to continue a meaningful dialogue, the Indigenous Federation of Madre de Dios (known as FENAMAD) has been objecting to the presence of Hunt Oil of Texas in the Amarakaeri Communal Reserve (RCA), part of the 3.5 million-acre Block 76 oil concession located in the Madre de Dios region in southeastern Peru. FENAMAD contends that Hunt Oil could be playing indigenous communities against each other to gain access to their lands. “The current strategy of the US company Hunt Oil is to negotiate directly with the members of each native community and seek to divide them and provoke open confrontation among the brother indigenous people within each community,” FENAMAD is saying in a memorandum.
There is a real danger this could emerge as the next flashpoint in a disturbing stream of conflicts between communities and oil and mining companies in Peru. The Peruvian Ombudsman Office estimates that of the 273 social and environmental conflicts in Peru in the first six months of 2009, 80 percent were related to extractive industry projects. (In 2008 there were 123 social and environmental conflicts in the same period.)
FENAMAD and other indigenous federations are insisting that foreign oil, gas, and mining companies must attain the free, prior, and informed consent from communities before they can enter any indigenous lands such as the Amarakaeri Communal Reserve. The right of free, prior, and informed consent is a right of indigenous peoples established under international law, and requires free access to full information (including independent analysis of project proposals), adequate time for a community decision free of pressure and coercion, and the option to reject a proposal--or accept under certain conditions.
The failure of oil, gas, and mining companies to gain appropriate access to communities with natural resources limits Peru’s ability to benefit from revenues it needs to help the approximately 50 percent of its population now living in poverty.
The legislature gave Peru’s President Alan Garcia broad powers to promote economic competitiveness through decrees last year, saying it was necessary to adapt legislation to comply with new requirements of the Peru-US Free Trade Agreement. Indigenous federations and many civil society organizations have strongly protested the possible consequences of these laws for the Amazon rainforest and indigenous lands, as well as the fact that they were adopted without transparency or genuine consultation. Some of these legislative decrees were rescinded following violent confrontations last June, but many are still in force.
Oxfam America's campaign—called the Right to Know, Right to Decide—aims to arm local citizens with the information they need to weigh the costs versus the benefits and decide whether to provide consent for the projects to move forward.
“There is a potential for this confrontation to escalate to violence,” says Emily Greenspan, Oxfam America’s policy advisor who monitors oil and gas projects in Peru’s Amazon. “Companies seeking to operate in any areas need to attain the free, prior, and informed consent of communities. Those that appear to be forcing their way into communities risk serious conflict, as we have seen in the recent past.”
]]>"President Obama's historic visit to Ghana, so early in his presidency and on the heels of important commitments at the G8 in Italy, signals the importance of African development to US interests," said Raymond Offenheiser, President of Oxfam America. "President Obama gets it. He understands that without a strong civil society, and capable, transparent governance, efforts to fight poverty and bring about social justice in Africa will at best be incremental. Good governance and sustainable use of resources will inspire more effective international assistance and increase trade."
President Obama had several recommendations that will help Africa on the road to prosperity. Here are a few of the highlights from the speech:
"In the 21st century, capable, reliable, and transparent institutions are the key to success—strong parliaments; honest police forces; independent judges; an independent press; a vibrant private sector; a civil society. Those are the things that give life to democracy, because that is what matters in people's everyday lives." These are all important parts of a thriving democracy, and President Obama made clear in his speech that these should be a priority in Africa just as they should be on every other continent. Building strong institutions that protect the rights of citizens, and allow business and entrepreneurs to flourish, will encourage investment in Africa. Oxfam is focused on helping civil society organizations work to hold their governments accountable. Examples include our partnerships with groups promoting new laws that accord equal rights to women and girls in southern Africa, and a region-wide proposal for uniform laws governing the mining industry in West Africa.
"So in Ghana, for instance, oil brings great opportunities, and you have been very responsible in preparing for new revenue. But as so many Ghanaians know, oil cannot simply become the new cocoa... Dependence on commodities—or a single export—has a tendency to concentrate wealth in the hands of the few, and leaves people too vulnerable to downturns." Resources like gold, diamonds, and oil can bring enormous wealth and potential for development. The road to prosperity will require leaders to avoid the path of poor management, corruption, violence and war. Ghana is a promising example of what is possible: Since Ghana discovered oil near its coast, the country's President John Atta Mills pledged earlier this year to disclose all petroleum agreements, so citizens can track what money comes to the government and how revenues are spent. This pledge has not yet been turned into reality. Real transparency needs to be built into a new legislative framework for how Ghana's new oil wealth will be managed, to ensure revenues are spent on social services and poverty reduction. Oxfam is working with the US Congress on legislation to require all US and foreign companies subject to Securities and Exchange Commission rules to disclose payments to developing country governments. This will be a critically important tool for citizens working to avoid corruption and waste of natural resource revenues.
President Obama also highlighted steps that the US would take to help combat corruption, including addressing corruption in the annual State Department human rights report, a recommendation that was made by Oxfam America in its Presidential transition memos.
"Aid is not an end in itself. The purpose of foreign assistance must be creating the conditions where it's no longer needed." The United States needs to make a number of key reforms to make our foreign aid system as effective as possible in reducing poverty and creating prosperous communities throughout the developing world. The US lacks a coherent strategy for global development. Oxfam is calling on the US to keep recipient country governments and their public informed on the nature and amount of American aid, and let each recipient country lead its own development agenda. President Obama's focus on using aid to defeat poverty is on the right track—one that we hope will lead to a new strategy for global development and a reinvigorated, effective aid system that will also rebuild US leadership in the world.
"A warming planet will spread disease, shrink water resources, and deplete crops, creating conditions that produce more famine and more conflict." Climate change is already affecting the lives and livelihoods of millions of poor people in Africa, as a recent Oxfam report detailed. Tackling these impacts is essential to addressing food security and broader development objectives. President Obama must commit to help bring about a comprehensive global climate strategy that will help poor communities cope with failed crops, dwindling reserves of clean water, and displacement caused by extreme weather events. The US and other wealthier countries must curb their greenhouse gas emissions to prevent climate chaos and provide adequate financial assistance to help African countries adapt in greener and more sustainable ways.
"Now, America can also do more to promote trade and investment." The economic welfare of Americans is inextricably linked with the well-being of people across the globe. While our foreign policy seeks to address the problems of poverty, disease and lack of economic opportunity, our trade policy has often exacerbated them, by demanding greater access to export markets in the poor countries, more favorable rules for US investors that can lead to greater poverty and inequality, and limiting access to affordable medicines. President Obama must develop a new trade policy with economic development as a core objective, spreading the benefits of trade as widely as possible, in the developing world as well as in the United States. This must include focusing efforts on the multilateral trading system to achieve a successful conclusion of the Doha Development Round, while working with Congress to pass legislation providing for duty-free and quota-free market access for all Least Developed Countries (LDCs).
]]>Amankwaa, 48, is a serious, no-nonsense business woman who rarely cracks a smile, but is patiently answering questions about her farm. She is gracious to visitors because she wants them to know she will not willingly sell her six small farms to an American mining company intent on exploiting the gold under the land in her Ghanaian village, Mehame, which means "don't bother me" in the local Twi dialect.
Amankwaa looks around the cocoa pods and all the trees. "This land was given to me by my grandmother; it had old cocoa trees on it and I cut them down and planted new ones," she says. "Now they are growing very well. This is what I depend on for everything, to keep my children in school and all the money we use for food we eat, the house we built, everything is from the cocoa farms."
"This farm is my life," she says finally, "My life is this farm."
The farmers here are industrious. One stood up in an informal meeting back in town to say "If you grow cocoa and don't make money, then you are not working hard." And the farmers in Mehame do make money: Amankwaa earns about $3,200 per year, which is roughly six times the national average income in Ghana. She and her husband have three children. The oldest is finished with school and growing cocoa himself, and the other two are in high school, a boy and a girl. They have a large concrete house with a proper roof, electricity, and clean water from a well.
Given everything they have achieved in Mehame, some of the farmers are skeptical about the proposal to expand the nearby Ahafo mine into their village, swallowing up their cocoa farms and homes. In exchange they would get compensation for their land and be given new homes somewhere else, but this is not an attractive option to Amankwaa and some others. "We don't want to be resettled somewhere, to be sent to another place, to another person's land," Amankwaa says. "We just want to be at peace with our farms and our children."
The American company looking to expand its mine into the area near Mehame seems to have the support of the government, and there is little opportunity for the local farmers to express their opposition to the mine expansion.
At first there were just rumors, then the villagers heard chainsaws in the forest, and found crews exploring for minerals without their permission. The company, Newmont Mining of Denver, arrived for formal visits with the chief, along with representatives from the Brong-Ahafo regional government, and a member of parliament. "Later on we heard the company found people and pushed them to say they wanted mining here, and used them to prove the community approved," Amankwaa says. She says this compelled opponents of mining to call on Oxfam America's partner WACAM to teach them how to defend their rights.
Working with WACAM, the farmers attended workshops in communities already affected by mining to learn about the potential social and environmental costs like pollution to the many streams that feed their farms. And they are learning to organize themselves, Amankwaa says. "With their advice, we have been able to unite and advocate for our position."
When a group of farmers convene to discuss their concerns about mining, the talk inevitably turns to ways they can defend their farms. Hannah Owusu-Koranteng of WACAM cautions the group against violence: "Protect your property, but don't sacrifice your life," she tells them. "Not all struggles should be violent. You can struggle by jaw-jaw, [talking], use your wisdom and language to win your struggle."
Abdullah Selifa, a 28-year-old employee of WACAM in Brong-Ahafo, says their first task it to ensure farmers like the ones in Mehame understand their rights in Ghana's constitution.
"We are fortunate to live in a democratic country," he says, and goes on to describe the articles in Ghana's constitution that protect the right to private property.
Nevertheless, the farmers are sure to have concerns about confronting powerful forces. "The people here have courage, but they are concerned about intimidation," Selifa says. "So we try to show them that they do not have to be afraid of struggling for their rights in the constitution—and that the government is there to protect their rights."
The community's latest move is to write their political representatives to ask for help. If they get a negative response, Selifa says they will take legal action to protect their farms.
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