Briefing Note J4P Promoting equity and managing conflict in development September 2012 Volume 7 | Issue 2 72441 “We Want What the Ok Tedi Women Have!� Guidance from Papua New Guinea on Women’s Engagement in Mining Deals by Nicholas Menzies and Georgia Harley1 Agreements between the state, companies, and impacted communities commonly include significant benefit streams for communities, such as a share of royalties and an equity stake in the mine. However, significant gender inequality, both locally and at the national level, means that women’s voices are rarely represented when these agreements are be- ing negotiated.3 As a result, women end up with control of few, if any, benefits, even while bearing more of the social and environmental costs of mining.4 1 The authors would like to thank Belden Dasa, Musje Werror, Nigel Parker, Ian Middleton, Jamila Abassi, Almah Tararia, Patricia Kassman, Nicole Haley, Adriana Eftimie, Waafas Ofosu-Amaah, Lwanzo Amani, Sakuntala Akmee- View of the Star Mountains, Western Province, PNG. mana, Phillipa Carr, and Laura Bailey, who were involved in the design, im- plementation, and write-up of this work. However, errors of fact and interpre- tation are ours alone, as are the views expressed in this paper, which should Introduction not be attributed to the World Bank, its executive directors, or the countries they represent. E-mail addresses for correspondence: nmenzies@worldbank. org and gharley@worldbank.org. Despite global gender equality gains in education, life expec- 2 World Bank, World Development Report 2012: Gender Equality and De- tancy, and labor force participation, two areas of persistent velopment (Washington, DC: World Bank, 2011). Strengthening the role of women in household and community decision making has been shown to inequality remain: asset gaps and women’s agency.2 In many have positive development impacts, as women tend to prioritize productive developing countries, including Papua New Guinea (PNG), expenditures for their families and communities (including on food, health, land and natural resources are citizens’ key assets. Women’s and education) over unproductive consumption (such as alcohol, cigarettes, and gambling). agency over these assets—that is, their ability to make choic- 3 Until the 2012 election when three women were elected at once, in the his- es and transform those choices into actions and outcomes (or tory of PNG’s Parliament only three women had ever been elected. Moreover, more simply, the ability to define goals and act on them)—is roughly two-thirds of women experience gender-based violence in their life- times, and maternal mortality rates are some of the highest in the region. commonly weak. This is especially so when the resources 4 See, for example, M. Macintyre, “Modernity, Gender and Mining: Experi- are accessed for capital-intensive development. Empowering ences from Papua New Guinea,� in Gendering the Field: Towards Sustain- women to exercise agency and control over natural resourc- able Livelihoods for Mining Communities, ed. Kuntala Lahiri-Dutt (Canberra: ANU E-Press, 2011). See also, M. Macintyre, “Petztorme Women: Respond- es and the revenues that flow from them is thus an impor- ing to Change in Lihir, Papua New Guinea, Women’s Groups and Everyday tant contemporary focus for gender equality and economic Modernity in Melanesia,� Oceania (Special Issue) 74, no. 1&2 (2003): 120– development. 33. The experience of some indigenous communities in Australia and Canada provides examples of women playing key roles. See C. O’Faircheallaigh, “Women’s Absence, Women’s Power: Indigenous Women and Negotiations The mining regulatory regime in PNG provides a strong with Mining Companies in Australia and Canada,� Ethnic and Racial Studies position for host communities relative to many countries. (2012): 1–19. the world bank The Ok Tedi mine, located in the northern corner of exclaimed: “We want what the Ok Tedi women have!� This PNG’s Western province, is an exception, albeit qualified, briefing note, centered on field research in North Fly district to this general state of affairs. The province receives a sig- (one of three impacted areas),8 explores the process of nego- nificant share of mining revenues yet service delivery in the tiation and the progress in implementation of the CMCAs. area remains weak. On top of provincial government rev- The purpose of the research and the resulting brief is to un- enues, impacted communities have received benefits total- derstand how the CMCAs came about, assess whether their ing more than K 2 billion (US$980 million) over the past promise is being realized in practice, and provide guidance decade.5 Revised compensation agreements at the Ok Tedi for mining and gender practitioners looking to use mining mine, called Community Mine Continuation Agreements agreements to improve development outcomes for women, (CMCAs), concluded in 2007 are an encouraging innova- both in PNG and further afield. tion.6 In these revised CMCAs, women had a seat at the ne- gotiating table and secured an agreement giving them 10 per- Underpinning the note’s approach to assessing the imple- cent of all compensation, 50 percent of all scholarships, cash mentation of the CMCAs are two widely held tenets of con- payments into family bank accounts (to which many women temporary development practice: are cosignatories), and mandated seats on the governing bod- ies implementing the agreement (including future reviews • Community-driven development (CDD): CDD has of the agreement). What is more, women’s entitlements be- played an increasingly important role in fragile institu- came legally enforceable rights in agreements signed by the tional contexts. Rather than treating poor and margin- state and the developer. Such an arrangement was—and re- alized people as the target of poverty reduction efforts, mains—unprecedented anywhere in the world. CDD is an approach that gives control over planning decisions and investment of resources to community At the 2010 “Women in Mining� conference in the town groups and local governments. It operates on principles of Madang,7 women from mining communities across PNG of empowerment, community ownership, participatory governance, greater downward accountability, and en- hanced local capacity.9 In difficult environments, com- plexity often undermines accountability and transpar- Figure 1:  Map of Western Province, PNG IBRD 39490 ency; thus key principles, such as clear and simple rules 141°E 142°E 142°E 144°E 146°E MANUS 148°E 150°E 152°E NEW 154°E 156°E 2°S of the game and access to information, are crucial. • Political economy: A political economy approach to IRELAND SANDAUN EAST Bismark Sea 4°S delivering development programs is one that is de- SEPIK MADANG BOUGAINVILLE INDONESIA WESTERN WEST HIGHLANDS NEW BRITAIN ENGA SANDAUN SOUTHERN IMBU EAST NEW BRITAIN 6°S signed to mitigate some key risks (such as elite capture EASTERN HIGHLANDS CH HIGHLANDS 5°S 5°S Ok Tedi Mine WESTERN GULF MOROBE Solomon Sea SOLOMON ISLANDS Wokamin Gulf of NORTHERN Papua Tabubil PORT MORESBY Selamin NATIONAL CAPITAL CENTRAL 10°S MILNE r NORTH AUSTRALIA BAY R ive Bimin ed i F LY Faiwoi 143°E 144°E PAPUA NEW GUINEA T Ningerum Ok WESTERN PROVINCE Konai Agala 5 Mine operator, Ok Tedi Mining Limited (OTML) data. Rumginae Awin TOWNS AND CITIES PROVINCE CAPITAL The five main benefit streams under the CMCAs are: cash (the mine operator 6°S 6°S 6°S Kiunga 6 SETTLEMENT BOUNDARIES Pa disburses cash into a mix of family and some clan bank accounts with an an- Nomad Biami DISTRICT BOUNDARIES Nomad SOUTHERN PROVINCE BOUNDARIES Yonggom HIGHLANDS INTERNATIONAL BOUNDARY nual payment per person); village projects (each village submits applications INDONESIA Kaeh Tomu 144°E for small-scale projects and goods, such as water tanks, outboard motors, and animal husbandry); investments (the Foundation invests funds in projects to Pa Boazi Lake Murray MIDDLE F LY Kwam earn an ongoing return, such as passenger and cargo vessels on the Fly River, r ve housing in Kiunga, and passenger planes); school scholarships (primary, sec- 7°S 7°S Ri d an kl ric St ondary, and tertiary); and the Women and Children’s Fund (10 percent of all Wawo GULF Bu mu Bossel i River benefits are set aside for women, to be decided upon by women’s groups). Alambak Riv er Zimakani Tao-Suamato 7 The third in a series of national conferences focused on women in mine- Kamula impacted areas, sponsored by the government of PNG and the World Bank as Ar part of the ongoing sectoral program of technical assistance financed by the Fly R am Yey iv ia R r iv er Bamu e World Bank in PNG. 8°S 8°S Suki An-Waruna Balimo Waia Bamu SOUTH Suki Gogodala Kiwai 8 The villages visited as part of research for this note were: mine villages Upper Morehead F LY Lewada Wabuda (Finalbin); river villages (Atkamba, Moian, and Yogi), and road villages Weam Tonda Mulum (Ningerum, where people came from other road villages to participate in Coa Morehead Idi focus group discussions). All villages were in North Fly district (except for sta lK iwa S Kiwai i Bensbach Wipim Nambu Gidra Gulf of Moian, which is in Middle Fly). Impacts and conditions in Middle and South South Agob Papua Fly districts are known to be different, and are not covered in this study. 9°S Lower 9°S Kanum Bine Morehead Daru 9 Experience has shown that given clear rules of the game, access to informa- Gizra Maza Wildlife tion, and appropriate capacity and financial support, poor men and women can This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information Management shown on this map do not imply, on the part of The World Bank Area 0 15 30 Kilometers effectively organize in order to address local problems by working in partner- Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 141°E 142°E T orre s Stra it 143°E 144°E SEPTEMBER 2012 ship with other development actors, both state and nonstate. 2 and leakage) through better understanding of existing food gardens, and increased mosquito-borne diseases. power structures and patronage systems, and works to Residents along the road between the mine and the river port overcome some of these constraints. Implementation in Kiunga also complain about dust from passing convoys. is an ongoing process of measuring progress against According to an independent environment expert, the river- articulated development objectives and adjusting de- ine impacts are likely to be felt for “several hundred years,� livery of programs accordingly. and are borne more heavily by women, who are traditionally responsible for crop production.11 In 1994, impacted com- Background to the Ok Tedi Mining munities mounted a class action lawsuit against the mine’s Negotiations then major shareholder, BHP Pty Ltd, in the Supreme Court of Victoria, Australia (where BHP is registered). The case The history, ownership structure, and importance of Ok Tedi was settled with a US$500 million payout (much of which to PNG’s economy have been critical in shaping the negotia- never reached impacted residents) and a commitment to tion process and its outcomes. contain tailings and mine waste disposal.12 The case drew international interest at the time for its use of tort law to The mine and affected communities have been engaged secure the accountability of a multinational company for en- in long-running disputes, primarily concerning significant vironmental damages.13 environmental damage from the disposal of tailings and mine waste into the Ok Tedi and Fly River systems.10 The In 2000, due to complaints about the mine’s continued disputes have taken place in the historical context of ten- use of riverine tailings disposal and the mine’s concern about sion over the impacts of the Panguna mine on the island of ongoing environmental liability, BHP raised the issue of Bougainville, which led to conflict and the creation of an au- whether the mine should close.14 This mine is the single larg- tonomous region whose governing structure includes a path est contributor to the national PNG economy,15 however, and to independence from PNG. More positively, the Panguna thus the state had, and still has, a strong interest in its contin- conflict also contributed to changes in government policy ued operation. and law that mandate the inclusion of impacted communi- ties in consultations prior to the issuance of mining rights, 10 For more information, see the Ok Tedi website at http://www.oktedi.com/ which helped shape the CMCAs that eventually emerged at community-and-environment/the-environment/impacts-of-mining. The origi- Ok Tedi. nal project design included a tailings dam, but the dam’s foundations were washed away in a landslide early in construction in 1984 and were not rebuilt. The national government and OTML agreed to allow the tailings to discharge The impacts of the Ok Tedi mine that are of particular directly into the river. concern include loss of fish stocks and water sources, in- 11 A. Tingay, “Letter of Endorsement from the Independent Scientist Appoint- creased flooding leading to the destruction of forests and ed to the CMCA 2006/7 Review Process,� April 16, 2007 (Attachment B to CMCAs). 12 G. Banks and C. Ballard, eds., The Ok Tedi Settlement: Issues, Outcomes, and Implications (Canberra: Asia Pacific Press, 1997). 13 Since the Ok Tedi case, class actions have become increasingly prevalent, CMCA Negotiations: an Innovation including actions taken against Freeport-McMoRan’s Grasberg mine in West Papua, Indonesia, Exxon-Mobil’s natural gas installation in Aceh, Indonesia, Independent international (The Keystone Center) and Unocal’s oil pipeline in Burma, Shell’s petroleum operations in the Nigerian delta, Rio Tinto’s copper mine on Bougainville, Texaco’s petroleum opera- local (The Tanorama Network) facilitators were selected tions in the Ecuadorian Amazon, and Thor Chemicals’ use of mercury-based jointly by the mine and CMCA community leaders to de- chemicals in South Africa. See Banks and Ballard, The Ok Tedi Settlement; sign, support, and guide the process. Independent legal, Peter Newell, “Access to Environmental Justice? Litigation against TNCs in environmental, and accounting advice was engaged on the South,� IDS Bulletin 32, no. 1 (2001): 83–93; and Halina Ward, “Secur- behalf of communities, at no cost to them. Prominent ing Transnational Corporate Accountability through National Courts: Impli- former Chief Justice of the PNG Supreme Court, Sir cations and Policy Options,� Hastings International and Comparative Law Arnold Amet, was appointed as the independent legal Review 24 (2001): 451–74. 14 BHP reported that even if mining stopped immediately, downstream en- observer, and during the meeting, became an adviser vironmental impacts would continue to increase and would likely persist to the communities. The top-level negotiations were for at least 50 years. Parametrix, Inc. and URS Greiner Woodward Clyde, held in Tabubil, the township at the base of the mine. Draft Executive Summary: Assessment of Human Health and Ecological Regional-level meetings were held in each of three im- Risks for Proposed Mine Waste Mitigation Options at the Ok Tedi Mine, pacted subregions, and village meetings in almost all of Papua New Guinea. Screening Level Risk Assessment (paper prepared the impacted villages. Delegates to regional meetings for Ok Tedi Mining, Ltd, Papua New Guinea, 1999): 1–13, available at: were directly elected by their village constituencies, and http://www.oktedi.com/attachments/242_HERA%20-%20Screening%20 Level%20Risk%20Assessment.pdf. the representatives at the top-level negotiating table in 15 In 2010, export earnings represented 18 percent of the country’s GDP, and Tabubil were elected from the regional meetings. taxes and dividends to the national government represented 18 percent of tax revenue and 17 percent of government domestic revenue. 3 the 2006–07 CMCA review, with over 20 years of experience in the area and production ongoing during negotiations, the mine was subject to fewer of the time pressures that compa- nies often face when negotiating agreements prior to the com- mencement of operations. Mine management also responded to the international pressure from nongovernmental and mul- tilateral organizations triggered by the environmental damage and ensuing litigation, hoping to leave an improved legacy. While not without its challenges, the 2006–07 CMCA review process was in many ways a model for other such negotiation efforts, and the quality of the overall process was Dieback along on the Ok Tedi River. important to the local women’s ability to secure the deal they did. The broadly consultative process established, signifi- cant time taken, and independent facilitation and advice pro- To allow operations to continue, the mine’s majority vided all helped to ameliorate asymmetries and build trust.19 shareholding was divested to a trust, the PNG Sustainable The review process lasted 18 months and cost K 7 million Development Program Limited (PNGSDP), registered in (US$3.4 million), paid by the mine. Singapore to ensure relative independence from day-to- day politics.16 PNGSDP invests income from the mine in development projects across PNG, including in the CMCA Women’s Engagement in the Negotiations The quality of the overall process provided a positive enabling communities. These projects, together with other mine- environment for women to exercise agency. Yet initially, related and government sources, represent a complex web women were not even included, as in the negotiation’s early of benefits, real and potential, for the local communities.17 stages, all the community representatives were men. In defer- The mine was also required under law to enter into legally ence to their understanding of local custom, the independent enforceable consent agreements with affected land owners facilitators did not challenge this. As one international facili- and users—the CMCAs. The first CMCAs were signed in tator noted, “we had to be very careful not to be perceived as 2001, and in accordance with a five-year review period, a undermining local authority or customs.� Instead, facilitators revised set of CMCAs was negotiated through 2006 and asked the male representatives to ensure that they represented 2007. The revised set of CMCAs now covers more than the views of their entire group, including women and children. 90,000 people in 156 villages, stretching from villages in The “on-site� nature of the discussions meant that, at least for the highlands around the mine site near Tabubil, along the Ok Tedi and Fly River to the mouth of the Fly, and the high- way from Tabubil to Kiunga.18 16 PNGSDP comprises a Long Term Fund and a Development Fund. The Long Negotiation of the Agreement Term Fund invests two-thirds of the net income received from OTML in low- risk investments for the future benefit of the people of PNG following mine closure. It currently has a balance of over US$1.2 billion. The Development Globally, negotiations between mining companies, states, Fund invests one-third of net income received from OTML in sustainable de- and landowners are often subject to considerable asymme- velopment projects. Two-thirds of those projects are national and one-third are tries of information and power. These characteristics reduce focused in Western province. For a fuller description of BHP’s exit strategy and the novel PNGSDP, see http://www-wds.worldbank.org/external/default/ the likelihood of equitable agreements and limit the poten- WDSContentServer/WDSP/IB/2011/06/14/000333037_20110614052552/ tial of mining investment to contribute to development out- Rendered/PDF/624980NWP0P1160ns00trusts0and0funds.pdf. comes. Over time, entrenched asymmetries can build tension 17 In addition to five main sources under the CMCAs, other sources of local projects include the Alice River Trust (set up after the class action), mine between the parties and undermine the durability of mining charitable projects, mine-implemented tax credit projects, member of parlia- investment. The CMCA review process at the Ok Tedi mine ment-controlled constituency development fund projects, and local govern- addressed these challenges to some extent. ment projects. 18 The number of villages has increased over time, as some communities that were originally opposed to the agreements have since joined. The experience with Bougainville’s Panguna mine, the 19 For a detailed description of the review process and the principles underly- long history of dispute, litigation, and engagement around Ok ing it, see B. Sharp and T. Offor, “Renegotiating a Papua New Guinea Com- Tedi, the Ok Tedi mine’s beneficial ownership, and the ad- pensation Agreement: Applying an Informed Consensus Approach,� Resource Management in the Asia Pacific Working Paper 69 (Canberra: ANU College vanced stage of the mine’s life were key factors resulting in of Asia and the Pacific, 2008); and P. Adler, J. Brewer, and C. McGee, “The the establishment of a more positive consultation process. For Ok Tedi Negotiations: Rebalancing the Equation in a Chronic Sustainability Dilemma� (Keystone, CO: The Keystone Center, 2007). 4 the regional meetings, some women were able to sit outside status and local roots, and substantial leadership and negotia- the negotiations and listen, even if they were not at the table. tion skills acquired in national and international settings. As negotiations continued, it became apparent that wom- In support of Mrs. Wainetti as the women’s delegate, the en’s views were not being put forward. The mining company’s women’s caucus of about 20 women constituted an impor- management implicitly understood that the significant re- tant forum for both educating women and developing an in- sources under the CMCAs were more likely to achieve devel- formed negotiating position for Mrs. Wainetti to take to the opment outcomes if women were involved. One senior com- main negotiating table. The caucus brought together at least pany representative reflected that “there would be a payout at two women from each of the nine impacted areas, along with the end, and there was some concern that the men may drink the Provincial Women’s Officer and female facilitators. A side that away, or buy jeeps, cigarettes, etc.� A delegate noted that workshop held over several days included information ses- “the women were so involved in health and education, they sions from mine staff and independent experts on the overall would end up being responsible for implementing social proj- mining operation, environmental impacts, and the likely bene- ects in the region.� Because improved development outcomes fit envelope. Mrs. Wainetti, the facilitators, and the mine com- could also build community support in favor of the mine and munity relations team also visited women in mine-affected reduce the chances of mining-related complaints, it was soon villages, exchanging views and developing a shared negotiat- recognized that women’s voices should be heard in the ne- ing position. As one international facilitator put it, “they [the gotiation. The combined support of the mining company and women’s caucus] were great because they were great leaders, independent facilitators was critical in convincing the male great negotiators, not just because they were women.� beneficiaries and the state that women should have a seat at the main negotiating table. With negotiations at a mid-point, How the Proposal was Reached and a women’s delegation was established. As one international Received facilitator noted “the women were so happy that they had a Initially, the women’s key proposal was that a minimum of 5 seat at the table—they felt they had won something already.� percent of all funds be ring-fenced for the benefit of women and children. As Mrs. Wainetti put it, women “wanted a sepa- Women’s involvement was structured around a single del- rate pot to make sure that women and kids were not forgotten egate at the central negotiating table and a separate women’s as usual.� The proposal was not intended to exclude wom- caucus that gathered outside of the main meeting to formu- en from the remainder of the benefits, or to be a maximum late negotiating positions. There were also consultations with amount that women would receive; rather, it was to be a sepa- women in impacted villages. The facilitators worked closely rate minimum amount prioritized for specific initiatives for with the mine’s gender desk, which had received prior sup- women and children. Drawing on personal relationships and port from a national-level Women in Mining project,20 and networks, the women’s caucus approached influential partici- which had assessed women’s development needs. pants out of session to seek their support for the proposal. One such participant was Sir Arnold Amet, a well-respected na- Ume Wainetti was identified as the women’s delegate. Mrs. tional statesman, who was supportive and suggested that they Wainetti is from the impacted region, yet also has a national raise the figure. The delegation also secured the behind-the- profile as former chair of the National Council of Women and scenes support of the mine’s senior management. The figure current convener of the national Family and Sexual Violence of 10 percent was ultimately chosen on the basis that the male Action Committee. In negotiations, Mrs. Wainetti used cul- beneficiaries would be unlikely to accept more and that 10 tural cues and tactics describing herself to other delegates as percent might fly “under the radar� at the negotiating table. a “sister and aunty.� Coming from the impacted area, Mrs. Wainetti felt she could both be more assertive and employ In tabling the proposal at the main negotiating ses- a range of emotions with the male village representatives sion, Mrs. Wainetti emphasized the complementary roles more freely than an outsider. She also was careful to sit next of women to men in the community, and stressed that “we to the mining company Managing Director at key moments. are not asking for much, only 10 percent.� After a silence, Presentations of health statistics for women and children, combined with emotive personal stories, helped to influence the men at the table. One international facilitator observed 20 Launched in 2003, the Women in Mining and Petroleum project (funded by the World Bank-managed Japan Social Development Fund) has included the that Mrs. Wainetti was “one of the best negotiators at the drafting of Women in Mining action plans for impacted communities, three table.� Her competence in this regard likely stemmed from national conferences leading to a Cabinet-endorsed five-year National Action a combination of tertiary education (when most of the other Plan, and capacity building (including basic literacy, numeracy, and economic skills development) to allow women to manage and fully benefit from the delegates had only primary level), a combination of national resources that accrue as a result of extractives industries. 5 Sir Amet spoke in support of the proposal, followed by the equal participation and equal benefit-sharing, and excludes mining company representative. One international facilitator women from the remaining 90 percent of benefits, its effec- described how “the backing of prestigious people was criti- tiveness should be seriously questioned. Some of these argu- cal to the proposal being supported in the room.� No ques- ments can only be assessed by analyzing implementation. tions or concerns were raised, and the proposal was adopted unanimously. Implementation of the Agreement The women secured additional provisions on an ad hoc The novelty of the deal secured for women in 2007 raised basis throughout the negotiation, including: high expectations, yet experience during implementation has been mixed. • Cash compensation payments to be made into family bank accounts, to which women were encouraged by Informed awareness of the women’s deal is low. Research re- the mine to be signatories. (Previously, cash was trans- veals that in many villages, a wide cross-section of women ferred to clan accounts, which were controlled by men and men had heard about “the women’s 10 percent� but no and subject to persistent concerns regarding misuse beneficiaries were able to explain even roughly how much and leakage.) money was available, the process by which projects were se- • Fifty percent of all educational scholarships to be lected, or what had been approved to date. Several women awarded to women and girls, and women would com- complained that they had not received guidance or training prise 50 percent of the scholarship selection panels. on how to access the benefits. “How do we get the money? • Women to be represented in the CMCAs’ key local …It is very hard…. Since the launching, nobody knows what governance bodies, called village planning commit- has happened with the 10 percent. There are no courses on tees.21 Each committee would include two women rep- how to apply for the money. Mothers are in a complete black- resentatives out of the five members (or three women out.� More positively, male residents did not express any re- representatives out of a maximum of eight members). sentment or complaints about the women’s 10 percent, other • Women to be represented on each of nine regional trusts than a critique that the women were not using their money. and on the Board of Directors of the Ok Tedi Fly River This may suggest a “normalization� of women having con- Development Program, the overarching Foundation re- trol over some portion of resources. sponsible for implementation of the CMCAs. This lack of understanding of the women’s 10 percent To address what was seen by the people affected as poor echoes broader confusion among communities about the implementation up to that point, key tenets of the revised CMCAs in general, with “mipela no klia� (“we don’t under- CMCAs set up new structures to ensure “a high level of own- stand� or “we’re not clear�) the most common refrain. Few ership and decision-making power over resources, programs people (beyond those actually serving on the village planning and projects� by the impacted communities. committees) could explain the process of CMCA project ap- proval, and even those on the committees did not appear to un- The revised CMCAs provide more explicit entitlements derstand how much money was available for CMCA projects for women than any other mining agreement in PNG and, in their village or region. Beneficiaries repeatedly expressed a as far as can be discerned, globally. They thus represent an desire for written information —“in black and white�—to dis- innovation in efforts to empower women to exercise agency pel misinformation, build awareness, and foster accountability. over natural resources. However, the deal is not entirely a success for women, since ring-fencing can be seen as “both a Representatives of the Foundation note the information victory for women and a failure.�22 On the one hand, it prom- problem, but state that “we can’t get information to 90,000 ises to improve the status of women by offering control over a specific allocation of funds. Indeed, benefits could be even greater if the women taking up decision-making roles over 21 Village planning committees, or VPCs, are tasked with engaging in a par- those funds were able to generate positive spillover effects ticipatory process to identify, plan, and allocate village-level CMCA projects. in other areas, such as stronger household decision making, VPC members are elected every three years, in a process supervised by the Foundation. greater participation in political life, and economic empow- 22 See Sharp and Offor, “Renegotiating a Papua New Guinea Compensation erment.23 On the other hand, it is hard to argue on its face that Agreement,� 23. control over 10 percent of all benefits for over two-thirds of 23 See, for example, the impact of reserved seats for women in Indian village councils on attitudes towards women, investment priorities, and reporting of the population (once children are included) is fair. Further, if crimes against women. A summary of the evidence literature is available at: it entrenches norms that women are somehow undeserving of http://blogs.worldbank.org/impactevaluations/when-women-are-in-charge. 6 explained the underspend as due to the failure of villagers to submit project proposals; however, underspending seems unlikely to stem from a lack of need for community improve- ments in the face of basic service failures and profound de- velopment challenges, and thus a targeted effort to make the proposal process work better could yield important results. In the villages, very few women had heard of the training centers, and neither women nor men reported feeling any ben- efits from the 10 percent deal. Women in the villages visited also often expressed concerns that they are not being faith- fully represented in the women’s bodies to decide on use of that 10 percent. Many of the women on those groups are the Consultations at Atkamba Village, Lower Ok Tedi. wives of local ward councilors or village planning committee people,� and indeed the geographical challenges are consid- chairmen, suggesting elite divides may compound gender in- erable. The Foundation relies primarily on village planning equalities. In one village, women complained that their rep- committee chairs as conduits to the rest of their committee resentative on the regional women’s group had moved and and the village at large. Minutes of meetings, notices, and was no longer resident in the village, and thus did not provide verbal updates are sent to the chairs for dissemination. One feedback from meetings. This is reflected more broadly in the mine representative explained low levels of beneficiary functioning of village planning committees, which appear awareness as a function of community “backwardness,� per- beset by challenges related to information, coordination, and haps reflecting an assumption that communities with little representation. Communities report that committees do not exposure to sophisticated financial topics are not able to un- faithfully represent community interests, “hoarding informa- derstand the arrangements. This conclusion—that awareness tion and keeping benefits� for their personal or family gain. is inherently and permanently constrained by the exotic nov- Committee chairs were frequently reported to no longer re- elty of trust funds and financial flows—is not uncommon on side in the village they represent (having moved into towns), the part of community development technocrats and resource which limited their ability to identify community needs, con- company staff, but global experience shows that targeted and vey information, and be held accountable for decisions made. skillful discussions at the community level can indeed em- Family bank accounts show promise. The introduction of power village people to understand and engage effectively family bank accounts for disbursing the cash compensation quite quickly. component of the CMCAs appears to be having a positive The ring-fenced women’s fund is operational, but its im- impact, improving access to resources by both women and pacts are not widely felt. In accordance with the terms of the youth.25 Unlike the project component, there is a general un- CMCAs, a separate process has been established to make de- derstanding of the entitlements and the timing of the pay- cisions about the women’s ring-fenced benefits, governed by ments, including among women and youth. In most of the all-women groups elected by women from beneficiary villag- villages visited for the research, male and female beneficia- es. From 2007 to 2010, K 69.8 million (US$34 million) was ries reported that women are cosignatories on the bank ac- set aside for the women and children’s fund.24 To date, the counts,26 and women report much greater access to money chief spending decision has been to invest in three learning than under the previous system of clan accounts. They also centers. This is in line with the intent of the CMCAs, which foreshadowed initial investments in capacity building to al- 24 This comprises: K 21.2 million from OTML, K 8.6 million from PNGSDP, low women to actively engage in development processes, in- and K 40 million from the state. The payment from OTML has been made regularly and PNGSDP funds have been forthcoming for women’s projects. cluding the informed use of their funds. One learning center State funding has been more difficult to access. is open but construction of the remaining two is yet to com- 25 The compensation amount varies per village but is in the order of K 400 mence. Of the money that has been allocated, much remains (US$200) per person per year, including for children. 26 The exception to this was reported by communities in and around Ningerum. unspent. In one region (covering 18 villages), approximately Prior to 2007, most families did not have bank accounts, so the mine and US$20 million of general funds (in other words, not the 10 Foundation undertook a process to provide bank accounts through two opera- percent women and children’s fund) remain unspent as of tors, BSP and PNG Micro-credit. Bank representatives traveled to each of the CMCA villages with the requisite paper work and opened accounts for most September 2011, and available figures show that up to half families. The mine and Foundation encouraged male and female cosignatories of individual village funds were also unspent. One trustee to the accounts. 7 claim to spend more productively than men, though this has facilities, and parents have expressed a reluctance to send not been independently verified. Some youth also report re- young girls to stay with relatives for long periods in light of ceiving their entitlements in cash from their parents. security and financial concerns. Nevertheless, villagers face high transaction costs in ac- More broadly, villagers expressed concerned about the cessing the cash compensation. Like many parts of PNG, lack of economic opportunities in the region for scholarship access to banking facilities in the CMCA area is extremely recipients (and others) after graduation. Few graduates of ed- limited. Beneficiaries must travel to one of only three bank ucational facilities outside of Western province return to the locations and travel costs are high. In one example, the cost CMCA area, raising local concerns about future economic of return boat and bus travel from Atkamba village, on the development. lower Ok Tedi, to the nearest branch in Kiunga is K 120 (US$57). For two parents (as account cosignatories) to ac- Decision-making structures do not reflect women’s repre- cess funds for a family of five, the cost of transport alone sentation mandated by the CMCA. In all the villages visited, would be over 15 percent of the annual compensation pay- each village planning committee included only one woman, ment. Initial plans to provide banking in boats along the rather than the two (or three) required under the CMCAs. In river were shelved due to the security concerns involved in most cases, the women’s representative is the wife or fam- traveling with large amounts of cash. Mobile phone-facili- ily member of a ward councilor, village planning commit- tated payments have yet to reach the CMCA area; however, tee chairman, or other male elite. No committee chairs were the recent rollout of mobile towers offers some promise in women. In the villages visited, few women reported being this regard. aware of what the village planning committee does, and even fewer participate in planning for CMCA village projects. Family bank accounts do not appear to have increased family savings, however. The Foundation, mine, and villag- Moreover, three women have not been appointed to the ers report that beneficiaries routinely withdraw the annual board of the overarching Foundation as required by the cash compensation amount in full. Monthly account keeping CMCAs. Indeed, there are no voting beneficiary represen- fees of K 7 (US$3.40) reduce the incentive of families to tatives—male or female—on the board. The Foundation save money through the banking system. The full withdrawal continues to be controlled by the mine, which holds 75 per- of funds also poses administrative burdens, as this automati- cent of the Foundation’s shares. The mine is assisting the cally closes the accounts, which then need to be reopened to impacted communities in setting up an association, the Ok receive the following year’s payment. Tedi Mine Impact Area Association, to take up a sharehold- ing in the Foundation. Yet, two out of the four seats on the The implementation of the scholarship scheme has been par- Foundation’s board are reserved for mine company represen- tially successful. The implementation process for the schol- tatives, and the mine Managing Director chairs the board. arship program has occurred in accordance with the letter of Furthermore, the CMCA requirement that the mine trans- the CMCAs. Women currently make up half of the selection fer equity in the mine to the Foundation (for the benefit of panel. However, the selection process requires little discre- the impacted communities) has also not been implemented. tion, as in practice, the money set aside for scholarships each These missed opportunities mean that the Foundation has not year has been greater than the number of applications,27 so yet been able to make the transition to a “high level of com- the selection panel simply identifies whether an applicant munity ownership� that was contemplated in the agreements. is from a CMCA village. Scholarships have been awarded for primary, secondary, and tertiary education in PNG. Full Lack of community ownership impacts development out- scholarships are awarded to younger students; for older stu- comes. The failure to transfer ownership and control to bene- dents, the amount is dependent on the student’s scholastic ficiaries has an impact on the development approach adopted achievement in the previous year. This is widely understood by the Foundation and ultimately on development outcomes. by beneficiaries and supported. There is a sharp divergence between the views of those im- plementing the agreements (primarily mine and Foundation In practice, fewer than 50 percent of scholarships are representatives) and the beneficiaries about the success of awarded to girls because fewer girls apply. Boys are often preferred for educational opportunities, because a girl’s pro- 27 For example: the Highway (Tutuwe trust) has allocated from K 1 million ductive capacity and eventual bride price payment often fac- to K 1.5 million per year; Lower Ok Tedi region (Waitri Trust) K 500,000, and Nupmo Trust (Ningerum) K 200,000 per year. Source: Ok Tedi Fly River tor into the decision on whether to send her long distance for Development Program personal communication. formal education.28 Furthermore, few schools have boarding 28 Thanks to a peer reviewer for these insights. 8 implementation. This is perhaps not surprising, as it is dif- ficult for the Foundation to visit every village regularly and hear directly from beneficiaries.29 Implementation could ben- efit from a structured mechanism through which valuable information about community needs, implementation chal- lenges, and grievances—direct from beneficiaries—can be fed back to the Foundation to facilitate continuous improve- ment. A reliance on village planning committee representa- tives overlooks the intra-community equity issues that often arise in community development. It is also hard for mining companies to “do� community- driven development. The ethos of mining companies tends to be technocratic, linear, grounded in scientific method, Unused House Poles, Moian Village, Middle Fly District. and focused on engineering outputs in difficult physical en- vironments. Community development, on the other hand, routinely revolves around political dynamics, privileging Villagers were asked to supply “local content� in the form process as much as outcomes, and balancing competing in- of bush material for the floors and walls of the houses. In terests and versions of events. While the forms for inclusive addition to the poles and roofing, Moian received a saw for community development have been put in place under the villagers to cut the bush material. The saw reportedly soon CMCAs, their function currently falls short of community- broke, and in any event, local landowners were unwilling to driven development. allow the broader group of villagers to cut trees for timber from their land. The sets of poles remain unused, as does This is exemplified in Moian village, where the mine ar- most of the zinc. Lopsided tanks dot the village, collecting rived to install a water pump. The mine technicians selected stagnant water. a site easily accessible from the village health clinic, but which happened to be 15–20 meters away from the village’s The broader impacts of the deal have not yet accrued for customary burial grounds. Residents expressed concern that anyone. The leadership that women demonstrated during the site was too close to their burial ground and suggested the negotiation phase has not been present during the im- an alternative location for the well farther away from the plementation phase. The research was unable to identify a village, with a pipe to convey the water. The technicians ex- cadre of women who demonstrate a similar rigor and col- plained to the villagers that this would be more costly and lective agency in implementation, which is an especial chal- more likely to break, thus potentially limiting the villagers’ lenge given the dispersed nature of the population and the access to water. They built the pump in the originally pro- poor state of communication. There are a few positive spill- posed location, which was a logical technical choice. The overs for women from the CMCAs, with representatives villagers do not use the well, which is an equally logical of the mine and Foundation reporting increased attendance sociocultural choice. Together, the result is an unsatisfying and assertiveness of women in community consultations. development outcome. However, village women report only minor changes in their own material circumstances, and there are few, if any, signs The Foundation is taking some steps to improve the par- of greater entrepreneurship, participation in broader politi- ticipation of villagers in project implementation. A “skills cal life, or increased bargaining power among women. The census� has been undertaken of each village to identify resi- anticipated empowerment gains do not appear to have ma- dent capacity to assist with projects. However, a focus on terialized as of yet. local labor is unlikely to result in greater community empow- erment in the absence of specific actions that embed commu- The absence of tangible benefits for women is reflected in nity ownership and control. The lack of community owner- the unsatisfactory impact of the CMCAs as a whole. Since the ship was also demonstrated by another situation in Moian, original agreements were reached in 2001, more than K 1 bil- where neatly erected house poles dot the village (see photo). lion (almost US$500 million at current rates) has accrued to The poles were erected as part of a housing scheme decided CMCA communities (with over another K 1 billion to the six upon for all villages in the Middle Fly impacted region. Each village received poles (cemented into place) and zinc roof- 29 The “service standard� for 2011 was one visit to each village each year, and ing to connect to water tanks (also delivered to the villages). for 2012, it is an overnight stay. 9 villages immediately surrounding the mine site).30 Regional risk of conflict and increased stability of production. coordinators for the Foundation report being “treated like the Women should focus on highlighting how their par- MP,� given the amounts of money they oversee.31 Despite the ticipation increases efficiency in the use of funds and significant financial flows associated with the mine, there are fosters greater opportunities for positive development few visible projects in CMCA villages, basic infrastructure outcomes, while also reducing the risks of complaint, and service delivery remain severely limited, rates of poverty conflict, and disruption of production. are high, and health and education indicators are poor—with • The characteristics of the individual women who par- women tending to be worse off than men.32 The lack of devel- ticipate in negotiations can make a real difference to the opment stems in part from the slow rollout of the Foundation negotiated outcome. Women’s representatives who and underspending, intra-village politics and divisions lead- combine both local ties with national or internation- ing to poor village-level decision making, and elite capture. al skills and experience can be particularly effective. There are, however, very few observable projects funded • Providing separate caucusing sessions for women, from other sources, such as local government or from MP- alongside the primary negotiating stream, allows in- controlled constituency development funds. The topographi- formation to be shared, capacity to be built, and a ne- cal and institutional landscape make this an extremely chal- gotiating strategy to be developed. lenging development environment. Compounding this, the • Independent facilitators and advisors (environmen- largely parallel CMCA governance structures are not linked tal, legal, and financial) help to address asymmetries in to local government; thus village planning committees do information and power, build trust, and ultimately con- not coordinate with ward development committees, and re- struct more equitable and thus durable deals. This is lations between the mine, Foundation, the PNG Sustainable of benefit to all stakeholders, but a transparent, open, Development Program, and the provincial government are a and informed process also provides space for capable topic of continuing concern.33 women. The PNG Mineral Resources Authority has an officer (who was involved in the CMCA negotiations) Looking Forward: Guidance to who now advises women in negotiation processes Strengthen Women’s Engagement in across the country. While this is a good step forward, Mining Agreements it cannot be the only mechanism, since the state is also a party to these agreements, which raises a conflict of The PNG Government is currently considering changes to interest. Similar tensions can arise for staff of mine policy and law to apply the basic tenets of the CMCAs to gender desks, thus highlighting the importance of in- mining contexts across the country. The idea of “Ok Tedi dependent advice (such as from nongovernmental or- style benefits� is widely popular among women in other im- ganizations or professional services firms) in improv- pacted communities, although the details and shortcomings ing negotiated outcomes. of the CMCAs are not well understood. Acknowledging the • A complex web of benefit streams undermines ac- unique history and context of the mine, the CMCA process countability, making it difficult for beneficiaries to provides insights for other PNG resource projects, as well understand their entitlements and know who is respon- as for stakeholders in other resource-rich countries that have sible for delivering what, let alone demanding per- “wealth� in the form of resources but suffer regular elite cap- formance if it is not delivered. Complexity provides ture of rents, severe gender inequality, collective action prob- space for a small elite to exploit community benefits lems, and chronic development challenges. 30 During the 2012–13 period, another K 292 million is projected to be re- With a view to informing future policy and practice in ceived, and a further extension of the mine’s life is being considered. both PNG and other countries, the following broad guid- 31 As chair of a Joint District Planning and Budget Priorities Committee for ance is provided to mining and gender practitioners engag- each constituency, MPs have significant control over sizeable resources (K 6 million in 2008 and K 4 million in 2009) that provides the potential for strong ing in these deals: visibility and influence of MPs at the village level. 32 2007 CMCA Census Report Appendix: Basic Statistical Tables. See also, D. Guidance for the negotiation phase of mining agreements Cammack, “Chronic Poverty in Papua New Guinea� (Manchester: Chronic Poverty Research Centre, 2009). 33 There are efforts to address this through a project matrix that captures all the • Mine operators can be powerful allies for women government, Foundation, and PNGSDP projects to guide decisions on imple- vis-à-vis male beneficiaries if the business and de- mentation and funding. velopment case for women’s inclusion is made.34 In 34 Rio Tinto, “Why Gender Matters: A Resource Guide for Integrating Gender Considerations into Communities Work at Rio Tinto� (London: Rio Tinto, mining areas, stronger roles for women—including 2010), available at: http://www.riotinto.com/documents/ReportsPublications/ as mine employees—may be associated with reduced Rio_Tinto_gender_guide.pdf. 10 for personal gain, and over time, confusion and cap- • Public written information underpins account- ture can breed tension and conflict. It would be more ability, even in communities with low literacy. Basic beneficial to deliver resources through a smaller num- information about benefit procedures, amounts, dates, ber of channels that are easy for beneficiaries to under- and feedback/grievance channels should be posted in stand and operate, and are transparent in their delivery public places, such as community halls, health clin- process. This would strengthen accountability while ics, schools, and churches, and posters and pamphlets also minimizing administrative overheads. should be distributed widely, summarizing informa- tion in lay terms. Mobile phones can also to be used to Guidance for the implementation of mining agreements convey information. • The responsiveness and accountability of village rep- • Family bank accounts (with women as cosignatories) resentatives to beneficiary communities is undermined enhance women’s control of cash compensation pay- when representatives do not live in the village—of- ments. Mobile banking could further enhance accessi- ten using the fruits of their newfound status to move bility of funds in remote areas and strengthen women’s away. Consideration should be given to instituting a control over funds. Opportunities exist to incentivize residency requirement for village representatives savings, for instance by lowering account-keeping fees, in the village they represent. providing returns on investments, and instituting a “bo- • Structured feedback and grievance procedures nus� compensation payment or matching grant to those can ensure that those responsible for project imple- accounts that retain an operating balance. In countries mentation have relevant information on activity per- like PNG that have an increasingly interested banking formance and challenges and can increase account- sector keen to exploit rapidly increasing teledensity, and ability. These processes should allow beneficiaries a regulator focused on financial inclusion (the Central to bypass their local representatives who may be the Bank), the potential for pilot programs that address the subject of complaint. One mechanism would be for constraints outlined here would be significant. beneficiaries to register their mobile phone numbers • Setting aside scholarships for girls and having women with the project implementers, who could then send on scholarship selection panels may not be enough periodic text messages (or make calls) asking for to overcome cultural and logistical barriers. Further feedback on local issues. incentives and structures need to be built in to en- hance gender equality in educational opportunities, such as a requirement that scholarships for boys are Conclusion conditional on a matching number for girls, and an of- fer of supplementary financing for special provisions The 2006–07 Ok Tedi negotiation process and the resulting for girls’ safety and security while attending school CMCAs were internationally groundbreaking for having se- away from home. cured enhanced rights for women in legally enforceable min- ing agreements, even in a context of severe gender inequality. However, the legal rights granted have not been sufficient in Other J4P Publications and of themselves to produce better development outcomes. on Papua New Guinea Implementation of the agreements has met with many of the common challenges facing other development efforts in PNG: logistical constraints, low administrative capacity, and How Capital Projects are Allocated in Papua New Guinean elite capture. Nevertheless, the gender asset gaps that per- Villages: The Influence of Local Collective Action, Local- level Institutions, and Electoral Politics, Zahid Hasnain, sist in the midst of the current global extractives boom high- Philip Keefer and Nicholas Menzies, Research Report, light the need to engage women more proactively in min- August 2011 ing agreements and support their ability to exercise greater agency over those resources. More attention to the principles The Hybrid Courts of Melanesia: A Comparative Analysis of Village Courts of Papua New Guinea, Island Courts and experiences of community-driven development, together of Vanuatu and Local Courts of Solomon Islands, Daniel with more local political economy analysis, will likely ben- Evans, Michael Goddard with Don Paterson, Justice and efit women’s engagement and outcomes. The particular guid- Development Working Paper Series, Vol. 13, 2011 ance laid out above for enhancing women’s agency—in both Conflict in Melanesia: Themes and Lessons, Doug Porter, the negotiation and implementation phases—offers further Sinclair Dinnen, and Caroline Sage, Input Paper for 2011 opportunities to promote women’s equality and through this, World Development Report achieve better development outcomes. 11 Other J4P Briefing Notes Vanuatu National Leasing Profile: A Preliminary Analysis, Sue Scott, Milena Stefanova, Anna Naupa, and Karaeviti Vurobaravu, J4P Briefing Note, May 2012 Increasing Access to Justice for Women, the Poor, and Those Living in Remote Areas: An Indonesian Case Study, Cate Sumner and Matthew Zurstrassen, J4P Briefing Note, March 2011 Public Land Governance in Solomon Islands, Shaun Williams, J4P Briefing Note, February 2011 Leasing in Vanuatu: Findings and Community Dissemination on Epi Island, Milena Stefanova, Raewyn Porter, and Rod Nixon, J4P Briefing Note, November 2010 The Lay of the Land: Land Access and Dispute Resolution in Timor-Leste, Pamela Dale, Kristen Himelein, Denis Nikitin and Angie Bexley, J4P Briefing Note, July 2010 Women, State Law and Land in Peri-Urban Settlements on Guadalcanal, Solomon Islands, Rebecca Monson, J4P Briefing Note, April 2010 Expanding State, Expectant Citizens: Local Perspectives on Government Responsibility in Timor-Leste, David Butterworth, J4P Briefing Note, February 2010 Women’s Access to Land in Kenya, Andrew Harrington, J4P Briefing Note, January 2010 What is J4P? J4P is a global research and development program aimed at informing, designing, and supporting pro-poor approaches to justice reform. It is an approach to justice reform that: • Sees justice from the perspective of the poor or marginalized • Is grounded in social and cultural contexts • Recognizes the importance of demand in building equitable justice systems • Understands justice as a cross-sectoral issue J4P in Papua New Guinea is part of the AusAID-World Bank collaboration on the East-Asia and Pacific J4P Initiative. This Initiative includes work in Solomon Islands, Vanuatu, Papua New Guinea, Timor-Leste, and Indonesia, as well as on regional thematic activities. Contact us at j4p@worldbank.org and visit our Web site www.worldbank.org/justiceforthepoor for further information. J4P Briefing Notes provide up-to-date information on current topics, findings, and concerns of J4P’s multi-country research. The views expressed in the notes are those of the authors and do not necessarily reflect those of the World Bank. 12 the world bank