Ladies and gentlemen,
I would first like to salute the spirit of the Extractive Industries Transparency Initiative – EITI which, twenty years ago, almost to the day, was put in place to establish a framework for concrete actions, to contribute substantially to ensuring that profits from the mining and energy sectors are used to support development.
Twenty later, in a world in continuous convulsion, a world which has crossed the majority of planetary limits, including in particular climate change, the integrity of the biosphere, the disruption of the biochemical cycles of nitrogen and phosphorus, modifications of land use and the introduction of new entities into the environment, it is certain that our future is increasingly uncertain. Continuing to irrationally extract the bowels of the earth could be an invitation to the apocalypse.
We must therefore make a transition towards responsible collective action for a more rational use of these resources, which are not renewable; and therefore, ward off a possible or even probable apocalypse.
In this perspective, and to give a framework to our discussions, I would like to suggest 3 areas of reflection and action
First of all, how to get out of the paradox that many countries, despite the abundance of extractive resources, are still in poor development and poverty. There is, and it is sad, for the least developed countries, a strong correlation between the existence of an abundance of extractive resources and poverty. Certainly, this correlation is not causation; However, it warns of the mismanagement of natural resources, and challenges us to the imperative to escape from this trap, which is often called “the curse of natural resources” or “the paradox of abundance”
I don’t believe in curses; such an idea promotes a determinism which, in my opinion, should not even be on our thinking radar, because it risks anesthetizing our actions. I am convinced that we can escape from this unacceptable paradox if we pursue a fair and effective extractive policy, that is to say:
- If the extractives chain is managed, in its entirety, with citizen and community participation; and with transparency, in particular with perfect traceability of the resources generated, including to bank accounts, even off-shore, where the resources generated are deposited.
- If we minimize the disruptive effects of extractive activities on their physical and human environment, and which are observed in periods of strong economic growth, and therefore of expansion of these activities.
- If we put in place effective macroeconomic management of extractive rent, which makes it possible to avoid the famous Dutch Disease ; which manifests itself in an appreciation of the real exchange rate which could penalize local industry subject to international competition.
- If the energy transition, which must be fair, promotes the energy mix, avoids the specter of the devaluation of assets linked to extractives (Stranded Assets) ; and is part of a broader economic transition, which promotes the structural transformation of economies, including the substantial increase in the internal retention rate in value chains, and the accentuated promotion of local content.
I believe, however, that managing the effective sustainability of extractive rent will require appropriate, adequate and transparent governance; and this is the second axis of my framing.
But I would like to extricate myself from the classic, but no less fair, discourse on the imperative of good governance at the country level, particularly those which are candidates for the EITI Initiative. I think that we do not place enough emphasis on governance with a global dimension where ethics is not often the rule, and which sees predators of all kinds exercising a terrifying holdup, and that is the word , on resources from countries with weak governance. And this is increasingly the case in our world today where we are observing tectonic upheavals in global geopolitics, with strong destabilizing resonances in areas of increased fragility such as the Sahel region.
We will therefore have to fight for more justice, equity and balance in global governance. This will not just be a battle of the states; but also a battle of parliaments, which must, in the name of the people, always validate and if necessary reopen contracts when they are judged unfair, a battle of citizens, in organized coalitions. In short, a battle of good consciences. I would like to take this opportunity to salute the excellent work of the African Union Coalition for Dialogue in Africa (CODA), which also provides the secretariat of the High Level Group on Illicit Financial Flows. I would like to recommend greater synergy of reflection and actions between the EITI Initiative, and CODA, and other structures that have congruent mandates. In this complex issue of extractives, the federation of good consciences will be our strength.
My third axis is therefore quite naturally a result of the first two, in the sense that it is a recommendation to the EITI Initiative, to consider moving to a new generation of the battery of Norms or Standards, by integrating a certain number of what could be perceived as intangibles but which are realities, such as ethics, social justice, intergenerational balance, the need to protect our Planet and securing our future.
Because our world is increasingly systemic, sovereign ratings, i.e. those focusing exclusively on countries, are increasingly losing their relevance. Norms or standards should rather address the ecosystem of actors; national and international actors; public and private actors. The EITI, which has earned its reputation and is well read by the market, could be a pioneer in this reinvention of standards. I invite him to it. The large Credit Rating Agencies should then follow.
Thank you.
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