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20-21 October 2011, Ulaanbaatar, Mongolia
CONFERENCE AGENDA
Many countries around the world rely on hydrocarbons and minerals for a substantial share of their exports and public revenue. For these governments, natural resources present the opportunity to improve the lives of their citizens. In the best case scenario, the benefits of increased public sector wealth are passed through to ordinary people in the form of, among other things, higher incomes and better health. Instead of improving human development prospects, however, in many cases the discovery and extraction of oil or other resources has been associated with economic decline, political instability, and domestic conflict. But natural resource wealth—driven by elevated commodity prices, high demand for exports, and improved exploration technology—can be transformative for developing country producers if managed properly.
In this context, UNDP and the Government of Mongolia will host an international conference on 20-21 October 2011 to discuss the different ways that developing countries have coped with the challenges of natural resource management, and in particular how extractive industry wealth might be better used to spur development and reduce poverty. While these issues have been widely studied and have been discussed in various international events, the upcoming international conference in Mongolia aims to make a unique contribution to the understanding of extractive industry management.
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For participating governments, the conference will provide a unique forum for policymakers from different regions of the developing world to discuss and learn from one another about how other resource producers have managed their revenue and promoted human development.
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For UNDP and other donors, the conference will be an opportunity to identify areas where support is needed and how it could be better designed and supplied—all based on recipient demand.
The conference will run for two days and will consist of thematic sessions focusing on the following policy issues:
1. An examination of the macroeconomic challenges facing hydrocarbon and mineral producers, and discussion of some of the government policy responses employed by countries to cope with issues related to fiscal management and Dutch Disease.
2. A review of the experiences of countries throughout the world in translating natural resource wealth into human capital and inclusive growth. This will involve discussion of governance arrangements conducive to this transfer as well as specific mechanisms for distributing wealth.
3. An investigation of how dependence on natural resource wealth contributes to the onset and prolongation of violent conflicts, and a discussion of policy options that can help weaken the link between the two.
4. An assessment of the environmental and social impact of hydrocarbon and mineral extraction, including policies to lessen environmental consequences such as pollution and social costs related to population displacement.
The conference will bring together government officials from Asia-Pacific, Africa, Latin America, Europe, and the Middle East, as well as representatives of civil society, donors, UN agencies, and the private sector.
Most sessions will be comprised of a general overview of the issue from a global or regional lens followed by the presentation of individual country perspectives. Each session will also close with an interactive discussion.
| Day 1: Thursday, 20 October 2011 |
| 8:30am-9:00am | Registration |
| 9:00am-10:30am | Chair: Mr. Damdin Tsogtbaatar, State Secretary of the Ministry of Foreign Affairs and Trade, Mongolia
Welcoming remarks: Ms. Sezin Sinanoglu, UN Resident Coordinator and UNDP Resident Representative for Mongolia
Keynote address: H.E. Mr. Sükhbaataryn Batbold, Prime Minister of Mongolia
Keynote address: Ms. Helen Clark, Administrator, UNDP |
| 10:30am-11:00am | Coffee break and press conference |
| 11:00pm-12:30pm | Session 1: High level panel discussion of the challenges and opportunities facing resource-rich countries
This high level panel discussion featuring government ministers and other selected attendees will focus on the challenges and opportunities facing resource-rich developing countries.
Chair: Mr. Ajay Chhibber, UN Assistant Secretary-General, UNDP Assistant Administrator and Regional Director for Asia and the Pacific
Panelists:
- H.E. Mr. D. Zorigt, Minister for Mineral Resources and Energy, Mongolia
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- H.E. Mr. Wahidullah Shahrani, Minister of Mines, Afghanistan
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- H.E. Mr. Byron Chan, Minister for Mining, Papua New Guinea
- Mr. Kiyoshi Kodera, Vice-President, Japan International Cooperation Agency
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| 12:30pm-2:00pm | Lunch |
| 2:00pm-3:30pm | Session 2: Translating resource revenue into human development
This session will focus on policies to convert natural resources into human development, with an emphasis on specific country experiences. Topics will include a global overview of the relationship between the extraction of resources and poverty, inequality, and human development outcomes. This will be followed by the presentation of country experiences in using resource wealth for development purposes, such as through social
and infrastructure investments, direct cash transfers, and sub-national distribution schemes.
Chair: [Senior government official (TBD)]
Global/regional overview
- • Mr. Scott Standley, Regional Bureau for Asia and the Pacific, and Mr. Pedro Conceicao, Regional Bureau for Africa, UNDP (12-13 minutes)
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- Professor Ronald Mendoza and Professor Harold McArthur, Asian Institute of Management (Philippines) and UNICEF (12-13 minutes)
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Country perspectives
Open question and answer session (50 minutes) |
| 3:30pm-3:45pm | Coffee break |
| 3:45pm-5:15pm | Session 3: Maximizing and managing resource revenue
High commodity prices and new extraction projects both provide resource-rich developing countries an opportunity to harness their natural resource endowments for development, but appropriate management is necessary in order to ensure that the resulting revenues are used to this end. This session will explore policies and instruments to help increase and manage revenues accruing to the government from extraction, including special fiscal institutions to de-link spending decisions from the business cycle and save for future generations.
Chair: H.E. Mr. Sam Basil, Minister for National Planning, Papua New Guinea
Global/regional overview
Country perspectives
- Mr. Farid Farzaliyev, State Oil Fund of Azerbaijan (7-8 minutes)
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- Mr. Manuel de Lemos, Secretary of State for Natural Resources, Timor-Leste (7-8 minutes)
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Open question and answer session (50 minutes) |
| 7:00pm-9:00pm | Dinner reception at Temuujin Banquet Hall, Chinggis Khaan Hotel |
| Day 2: Friday, 21 October 2011 |
| 9:00am-10:30am | Session 4: Extractives and conflict
This session will discuss the transmission channels through which hydrocarbon and mineral extraction heightens the risk of conflict. Possible economic policies and institutional frameworks to help prevent these conflicts will be reviewed. The session will combine analytical and conceptual issues with concrete country examples.
Chair: Ms. Marta Ruedas, Deputy Assistant Administrator and Deputy Director, Bureau for Crisis Prevention and Recovery, UNDP
Global/regional overview
Country perspectives
- Mr. Naresh Saxena, National Advisory Council, India (7-8 minutes)
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- • H.E. Mr. Sam Basil, Minister for National Planning, Papua New Guinea, and Mr. David McLachlan-Karr, UN Resident Coordinator and UNDP Resident Representative for Papua New Guinea (7-8 minutes)
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Open question and answer session (50 minutes) |
| 10:30am-10:45am | Coffee break |
| 10:45am-12:15pm | Session 5: The institutional and governance dimensions of resource management
This session will address the institutional and governance dimensions of natural resource management, including specific tools and mechanisms that can help countries to more effectively and fairly manage their resources, prevent corruption, and minimize the risk of conflict. Legal frameworks, transparency policies, and accountability mechanisms will be considered.
Chair: Mr. Saurabh Sinha, Senior Economist, UNDP Mongolia
Global/regional overview
Country perspectives
- Mr. Ruben Gonzalez, National Advisory Council, Chile (7-8 minutes)
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- Mr. Trinh Minh Cuong, General Department of Geology and Minerals, Vietnam (7-8 minutes)
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- Mr. Donald Tyoachimin, Nigeria Extractive Industries Transparency Initiative (7-8 minutes
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- • Mr. João Penito, Natural Resources Values, Ministerio da Geologia e Minas e da Industria, Angola
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Open question and answer session (45 minutes) |
| 12:15pm-1:45pm | Lunch |
| 1:45pm-3:15pm | Session 6: The environmental and social impact of extraction
The impact of the extractive sector on local communities is often significant. Without proper management, the extraction may contribute to worsening health conditions, consume large quantities of scarce water supplies, and lead to the forced displacement of communities. This session will consider some of the environmental and social consequences of hydrocarbon and mineral extraction, with a focus on government and other stakeholder institutional and policy responses that can mitigate these negative effects, including efforts to enhance government enforcement capacity and experiences in environmental and social impact assessment.
Chair: Mr. Filimone Kau, Permanent Secretary for Lands, Ministry of Lands, Mineral Resources & Environment, Fiji
Global/regional overview
- Professor Gurdeep Singh, Centre of Mining Environment, Indian School of Mines (12-13 minutes)
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- Dr. Yoshitaka Hosoi, Visiting Professor, Atika University and Visiting Senior Advisor for Natural Resources, JICA (12-13 minutes)
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Country perspectives
- Mr. Yuan Guohua, Chinese Academy of Land and Resource Economics, Ministry of Land and Resources (7-8 minutes)
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- Mr. Pius Ginting, WALHI (The Indonesian Forum for the Environment) (7-8 minutes)
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- • Ms. Erdenetsetseg Sugar, Senior Expert, Surrounding Environment and Natural Resources Department, Ministry of Nature, Environment and Tourism of Mongolia (7-8 minutes)
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Open question and answer session (40 minutes) |
| 3:15pm-3:30pm | Coffee break |
| 3:30pm-5:00pm | Session 7: The challenges of Dutch Disease, structural change, and economic diversification in resource-rich countries
Large inflows of natural resource revenue have been connected to stagnant growth and the decline of other tradable economic sectors. This phenomenon, known as Dutch Disease, arises when the real exchange rate appreciation that accompanies an increase in resource revenue makes it more difficult for a country’s other traded goods to compete. This session will provide an overview of these and related issues, and will examine some of the specific policy responses used by countries to cope, such as economic diversification and exchange rate management.
Chair: [Mr. David McLachlan-Karr, UN Resident Coordinator and UNDP Resident Representative for Papua New Guinea (TBC)]
Global/regional overview
Country perspectives
- H.E. Emilia Pires, Minister of Finance, Timor-Leste (7-8 minutes)
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- Dr. Ch. Khashchuluun, Chairman, National Development and Innovation Committee, Mongolia (7-8 minutes)
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Open question and answer session (50 minutes) |
| 5:00pm-5:45pm | Closing panel discussion
Co-chairs:
- Mr. Ajay Chhibber, UN Assistant Secretary-General, UNDP Assistant Administrator and Regional Director for Asia and the Pacific
- H.E. Ms. T. Gandi, Minister for Labour and Social Welfare, Mongolia
Panelists:
- H.E. Emilia Pires, Minister of Finance, Timor-Leste (TBC)
- H.E. Sam Basil, Minister for National Planning
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