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Conflict Management and Prevention in the Extractive Sector

12 November 2011
Honolulu, Hawaii
Canada is committed to contributing to economic prosperity and sustainable development in the Americas.

To this end, on November 12, 2011, Prime Minister Stephen Harper announced support for a project that will help promote economic growth in Peru by reducing the impact of social conflicts related to the use of natural resources.

Canada will be providing $4,890,000 over four years (2011–2015) towards the Conflict Management and Prevention in the Extractive Sector project.

The main activities of the initiative include:

  • Training and capacity development in conflict management and prevention for more than 1,000 public officials and other stakeholders
  • Technical assistance for the creation and implementation of mechanisms and tools to directly address specific conflicts and to reach mutually agreeable and verifiable agreements
  • Support for the creation and operation of regional conflict management offices in eight regions
  • Support for the creation and operation of multisectoral dialogue tables at national, regional and local levels for the construction of an inclusive natural resource development agenda

The initiative is being implemented by the United Nations Development Programme which has already achieved significant results in the field of conflict prevention in Peru. Technical assistance will be provided to Peruvian state agencies and regional governments, as well as to other stakeholders. The project will work with the central government and eight targeted regional governments where the issue of conflict over natural resources is particularly critical.

Rationale for the project:

Peru’s strong economic and jobs growth over the past five years is in large part a result of the expansion of the extractive industry at a time of consistently increasing global commodity prices. At the same time, statistics from Peruvian State institutions show that social conflicts—a large majority of which are linked with extractive industries—have also increased over the past four years. Preventing and managing these social conflicts will contribute to sustainable economic growth for the benefit of individual communities as well as the entire country.

Other Canadian activities supporting conflict resolution in Peru

Canada already supports a multi-stakeholder approach to create a dialogue for conflict resolution that includes the private sector, civil society, local communities, the Defensoría del Pueblo (Peru’s Office of the Ombudsperson) and the central and regional governments.

In addition, Canada is undertaking bilateral projects in support of natural resource management and Corporate Social Responsibility in the extractive sector in Peru including long-term institutional support to the Ministry of Energy and Mines and a partnership with the International Finance Corporation (IFC) to strengthen the capacities of municipalities to invest natural resource royalties. In addition, the Andean Regional Initiative for Promoting Effective Corporate Social Responsibility in Peru, Colombia and Bolivia will strengthen the capacity of local governments and communities to implement sustainable development projects for the well-being of people living near extractive operations and will improve dialogue between communities and the private sector.

Finally, at the Commonwealth Heads of Government meeting last month, the Prime Minister announced the creation of the Canadian International Institute for Extractive Industries and Development. This initiative will build on Canada’s leadership in mining sector to support and build natural resource management capacity in developing countries.


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