Institutionalizing Dialogue in Peru UNDP Oslo Workshop. Partnerships for Dialogue: Prevention of Social Conflicts with the Use of Natural Resources

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Institutionalizing Dialogue in Peru UNDP Oslo Workshop Partnerships for Dialogue: Prevention of Social Conflicts with the Use of Natural Resources

Context EXTRACTIVES: IMPACT OVER GROWTH Economic Impact OVER GDP, EXPORTS AND INCOME Increase from 450 million US$ (2004), to 9,000 million US$ during 2013. On average 58% of exports, 14.5% of revenue and 13.7% of GDP (2004-2014). OVER LOCAL DEVELOPMENT Royalties: Largest source of revenues for decentralized public investments impacting 1724 districts. More than 5 Billion US$. In 2011 they financed 11% of regional budgets. In mining departments equivalent to 20%. Transfers financed new infrastructure, prioritizing road infrastructure (20%), water and sanitation (19%), education infrastructure (13%) and agricultural infrastructure (9%). Income per capita doubled in several mining localities. CURRENT INVESTMENT PORTFOLIO 47 large scale projects totaling US$ 56 Billion. Prevention of Social Conflicts with the Use of Natural Resources

CHALLENGES Context Major mining projects are located in areas with large social gaps and extreme poverty. Weak state presence in mining areas. Benefits of investments - no impact on welfare of communities. Insitutional weaknesses representation mechanisms. Little recognition of cultural diversity. Challenges Emergence of Social Conflicts Impacting governance and stability - Removal of Ministers and other authorities - Injured (1,935) and deaths (63) Paralyzing / Postponing Investments + 62 Billion US$ (investments / production) 2011-14 =16.7% GDP (2.3% GDP per year) 2008-14

Context Social Conflicts Evolution of Social Conflicts 2007 2014 Peru 2015, May 211 social conflicts 68% Socio- Environmental 66% Mining 15% Hydrocarbons 8% Energy

New Approach to redress Social Conflicts NEW APPROACH PREVENTION DIALOGUE + + + GOVERNANCE for the country SUSTAINABILITY to investments DEVELOPMENT for the country Prevention of Social Conflicts with the Use of Natural Resources

New Approach to redress Social Conflicts 1 2 3 4 5 6 Focus on prevention Management of Dialogue Building New Public Policy Citizen Education Research and Analysis Revamping of local development processes Identifying differences and controversies to avoid the emergence of conflict, crisis and violence. Dialogue as main tool for the transformation of social tensions. Implementation of strategies, instruments, methodologies and protocols for conflict prevention and management that are part of innovative public policies. Promotion of a culture of peace, human rights and democratic values that contribute to the generation of capacities for dialogue and mediation. Systematization, analysis of information and research for the promotion of dialogue and conflict prevention. Public-Private commitments to increase social investments and delivery of public services.

Dialogue as an Opportunity to Enhance Development TRANSFORMATION OF CONFLICT OPPORTUNITIES FOR DEVELOPMENT Prevention of Social Conflicts with the Use of Natural Resources

The Implementation Strategy 1 Reestablish Trust in Government Boosting government presence. Establishment of Consultation Mechanisms (ILO 169). Strengthening of environmental monitoring and supervision. Towards a State Architecture for the Governance of Natural Resources? 2 Change behavioral patterns of the State, Companies and Society Monitor and Supervise companies. Promote investments and respect for citizens rights. Articulated intervention of different government levels and sectors. STATE Social and Environmental responsibilities become common practices. Companies involved in development processes. COMPANIES SOCIETY Promote a culture of dialogue. Strengthen social trust mechanisms. Prevention of Social Conflicts with the Use of Natural Resources

The Implementation Strategy 3 National Policy to institutionalize dialogue Law Proposal for the creation of National System for Prevention and Management of Conflicts. Center of Excellence for Good Entrepreneurial practices and Institute for Dialogue and Consensus. Approval of laws and regulations that enhance dialogue, consultation and prevention mechanisms: Law on Prior Consultation (ILO 169), Citizen Participation EIA, CAR/CAM, EWS. 4 Strategy tools Dialogue spaces Creation of spaces. PART Early Warning Mechanism. Training Modules Capacity development. Willaqniki Information mechanisms. Communicators network Communication / outreach strategy. Participation / consultation mechanisms 5 Dialogue Spaces Development Roundtables. Dialogue Roundtables. Technical roundtables. Working Tables. Multi-Sectoral Commissions. Environmental Instruments. Empowerment of Social Actors. Public and private commitments to invest. Sustainable local development processes. Opportunity to build consensus on key development priorities from a symmetrical approach. Strengthening capacities of social organizations. Consensus to achieve agreements.

Key Results and Achievements 1 Dialogue is Governments primary 2 Credibility and trust in State strategy to address conflicts strengthened** Government sectors (10) and Regional Governments (7) using dialogue Over 90% of conflicts have ongoing dialogue processes. Used for environmental, intercultural and social processes. Government is present throughout conflicts. Shared vision between Gov + Private Sector Ongoing dialogue between Indigenous Organization and the State. Citizen Participation in environmental governance. 3 New methodologies and strategies 4 Drop in number and intensity of to redress social conflicts in place conflicts (2012-2014) Guidelines, tools, protocols and policies in place. Information Systems Data on conflicts / EWS. Evaluation, analysis, policies and processes on social and environmental challenges Preventive action applied to 101 cases. 136 cases of conflict resolved / transformed. Management of 156 spaces for dialogue (89 dialogue and development roundtables) and 67 technical commissions.

Key Results and Achievements Increased Government Spending for 5 Local Development process During 2013, more than $600 million of government funds into improving roads, schools, water and other essential services.

Challenges and Lessons Learned Challenges Political Will is critical to moving forward the institutionalization of dialogue. Commodity Prices and impact over royalties Electoral Calendar Sustainability Missed opportunities Inability to implement National System and several policy tools Difficulties in consolidating progressive trends (environment and consultation versus economic growth). Risks: Existence of public policies conducive to conflict Role of the Ministry of Energy and Mines vis-a-vis ONDS.

PROGRAMA DE LAS NACIONES UNIDAS PARA EL DESARROLLO Complejo Javier Pérez de Cuéllar Av. Pérez Araníbar 750, Magdalena del Mar. Lima Perú. Teléfono: (511) 625 9000 www.pe.undp.org Más información sobre el proyecto «Alianzas para el Diálogo: Prevención de conflictos en el uso de recursos naturales» aquí: facebook.com/alianzas-para-el-diálogo @AlianzasDiálogo Alianzas para el Diálogo Alianzasparaeldiálogo.blogspot.com