Work in Progress

World Bank/University of Dundee

Oxford, September 14, 2010

Cape Town, September 17, 2010

Washington, January 6, 2011

EI Source Book

“Paradox of Plenty” Wealth and underperformance

Good governance, fiscal management, and sound policy

What are good policies within EI sector management?

Vast amount of published research on the topic

Source Book is a collection of relevant and important documents

EI Source Book will be an online, open-source, dynamic, concise, and comprehensive guide

Notional handbook for EI-TAF staff and consultants

Valuable tool for resource administrators, policy makers, civil society and other providers of technical policy support to extractive industries

EI Source Book-Background

World Bank’s Extractive Industries Value Chain

The EI Value Chain illustrates the range of topics to be

addressed in formulating policies for the EI Sectors.

The EI Source Book is based on an expanded version of the

Value Chain approach to EI issues.

Phase I includes six principal activities to be undertaken during the first year of development

1. Guiding Principles – Establish broad

principles to guide the creation of the EI Source Book that supports sustainable socioeconomic development

2. Literature Review - Undertake literature

review of key publications by World Bank, IMF, and other sources related to good policies within EI sector management

3. Framework – Create a simple, workable,

and multi-dimensional framework for policy formation suitable for both petroleum and

mining industries

EI Source Book-Phase I

© Curt Carnemark / World Bank

4. Gap Analysis – Identify “Gaps” within

literature review and determine what additional research is warranted to form a comprehensive Source Book. Research to be undertaken in Phase II

5. Consultations – Create opportunities for

stakeholders to engage in the development process and to incorporate broader perspectives. Includes government, industry, civil society, and NGOs

6. Beta Source Book – Construct a “beta

version” of the EI Source Book having full functionality and applicability using a modest subset of information derived from core World Bank and IMF documents and other sources

EI Source Book-Phase I

© Curt Carnemark/ World Bank

The World Bank Group’s assistance to the extractive industries is premised on the belief that, properly managed, the development and use of minerals can provide substantial benefits to its

client countries

Strategy International collaborative approach

Strategic partnerships with academic institutions

Recognized for research within petroleum and mining sectors

Specialized sector knowledge, multiregional contribution, unique expertise and perspective

Overall Management World Bank Oil, Gas and Mining Policy Unit,

Washington, D.C.

http://www.worldbank.org/

Lead Consultant The Centre for Energy, Petroleum and Mineral Law

and Policy (CEPMLP), University of Dundee, Dundee, Scotland. http://www.dundee.ac.uk/cepmlp/

EI Source Book-Partners

© Scott Wallace/ World Bank

• Source Book structure • Content creation

• Source Book online

• Technical Issues

• Narrative • Outline and content

• Resources • References

• Documents

• Country briefs

• Preliminary Gap Analysis

• Website • Snapshot

• Next steps

‘Core’ EI Source Book

Handbook targeted to consultants engaged on EI-TAF projects and client governments

Academic institutions, CSOs and private sector will also benefit from involvement

Living document, with initial content drawn from World Bank and select third-party knowledge products, as distilled/structured by the University of Dundee

This initial content/structure will be transferred into the EI-TAF Source Book online system

Core Narrative

Topic A

Topic A.1

Topic A.2

Topic B

(Gap identified)

Topic C Topic C.1

WBG and select

third-party

documents

reviewed and

distilled by

University of

Dundee

‘Core’ EI Source Book

Source Book will begin to take on a life of its own: sections will be updated, sub-sections added, documents attached, and related areas cross-linked

A potential strategy will be to maintain a core, ‘vetted’ EI Source Book, while filtering external submissions and knowledge through reviewers or advisory body

Core Narrative

Topic A

Topic A.1

External user wiki

content

Case study

Topic A.2

Topic B

(Gap filled) Topic B.1

Third-party

research

Project Documents

from previous WBG

project

Topic C Topic C.1 Workshop

Documents

Review function Knowledge inflows

• Introduction

• A. Resource Curse • A.1 The Resource Curse phenomenon

• A.2 Technical factors

• A.3 Political factors

• B. Extractive Industries • B.1 Common features

• B.2 Key differences

• Extractive Industries Value Chain

• C. Policy, Legal, Contractual and Regulatory Framework ◦ C.1 Policy context

◦ C.2 Legislation

◦ C.3 Contracts

◦ C.4 Regulations

◦ C.5 Negotiations

◦ C.6 Disputes

• D. Sector Organization and Oversight • D.1 Institutions

• D.2 National Resource Companies

• E. Fiscal Design, Instruments and Administration • Fiscal design

• Fiscal instruments

• Fiscal administration

• F. Revenue Management and Allocation • F.1 Revenue and Asset Management

• F.2 Resource Funds

• F.3 Revenue Allocation

• G. Implementation of Sustainable Development Policies and Projects • G.1 Expenditure Policy and Implementation

• G.2 Expenditure Quality Control and Oversight

• Cross-Cutting Topics

• H. Social and Environmental Considerations • Social concerns

• Environmental concerns

• I. Transparency and Accountability • Benefits and Challenges

• Transparency Initiatives

• J. Institutional Capacity • J.1 Capacity Requirements

• J.2 Delivering Capacity Building

• K. Consultation and Stakeholder Participation • K.1 Role of consultation

• K.2 Civil society

• K.3 Parliament

• K.4 Industry

• K.5 Home Governments

• K.6 International Institutions (including IFIs)

• References • 100+ references to books, articles, websites

• 70 reference summaries

• Collection of references and preparation of summaries ongoing

• Documents • Growing collection of policy statements, laws,

contracts and regulations

• Country Briefs • Ongoing preparation of short briefs on country

experiences

• Baunsgaard, T., A Primer on Mineral Taxation, IMF Working Paper, September 2001

• Boadway, R., Keen, M., Theoretical perspectives on resource taxation design, in The Taxation of petroleum and Minerals: Principles, Problems and Practice (Daniel, P., Keen, M., McPherson, C., (eds.) Oxon, United Kingdom: Routledge, 2010)

• Calder, J., Resource tax administration: functions, procedures and institutions, in The Taxation of petroleum and Minerals: Principles, Problems and Practice (Daniel, P., Keen, M., McPherson, C., (eds.) Oxon, United Kingdom: Routledge, 2010)

• Calder, J., Resource tax administration: the implications of alternative policy choices , in The Taxation of petroleum and Minerals: Principles, Problems and Practice (Daniel, P., Keen, M., McPherson, C., (eds.) Oxon, United Kingdom: Routledge, 2010)

In Preparation:

• Ghana

• Uganda

• Nigeria

• Botswana

• Brazil

• Chile

Access issues ◦ Viewing Rights for all users, and Editing Rights for select users

◦ External (non-WBG) user access will be required

◦ Document hosted outside of WBG IT system

◦ Narrative handbook will complement on line information access

Utility for users

◦ Online/offline use (Hardcopy/print-out may be needed by users in the field)

◦ Software platform robust, functional on older computers, and user-friendly

◦ Language translation may be required (likely limited to core document)

Quality control

◦ Maintaining order and structure, while still allowing for dynamic content

◦ Need for caretaker and maintenance roles/guidelines to be established

◦ Review/consolidation procedure for core ‘vetted’ content (Advisory Group)

◦ Key risk is the document becoming unwieldy, structure undermined and/or poor content

Next steps ◦ University of Dundee creates Phase 1 of EI Source Book, providing core structure for online

system

◦ Online system is chosen based on software ability to meet procedural and operational needs

• Stepped-up program of consultations

• Revise and expand Narrative

• Add selected references, documents and country briefs

• Edit summaries

• Edit web page and revise as necessary

• Prepare Phase 2 (online version of Source Book)

CEPMLP Contact Information

Peter Cameron – p.d.cameron@dundee.ac.uk Charles McPherson – charles.mcpherson@gmail.com

EI-TAF Contact Information

Michael Stanley - mstanley@worldbank.org

Contact Information

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