Corporate Social Responsibility

News

4.15.2008 - 03:58pm ET

CSR News from:	Oxfam America
News Categories:	Environment
	Activism

Oxfam America to Promote the Rights of Communities Impacted by Oil, Gas and Mining Development

Aid Group Calls for Mandatory Disclosure Legislation

(CSRwire) WASHINGTON, DC – April 15, 2008 – Oxfam America today announced a new initiative to promote the rights of communities impacted by oil, gas, and mining industries. As oil, gas, and other commodity prices reach record levels, investment in extractive projects is growing. More than 60 percent of the world's poorest people live in countries rich in natural resources. Many poor communities have no say in the extraction of resources from their land and receive little information about these projects.

"Too often, oil, gas, and mining projects don't benefit people in countries that are rich in natural resources, but whose population is extremely poor. These extractive projects should not add to poverty and powerlessness - natural resources can and should help communities overcome these challenges," says Raymond C. Offenheiser, President of Oxfam America. "In order for this to happen, however, communities need to know how mining and energy projects will impact their lives and lands and how revenues from these projects will be used."

Oxfam calls on international oil, gas, and mining companies to show their respect for:

right to know

right to decide

"Empowered with this information, communities are better able to share in the benefits of extractives projects. Revenues can go to real community needs like education, health care, and jobs, and communities can judge if these projects are a benefit or a burden," said Offenheiser. "More often, contracts and revenues are kept secret leading to an environment that fosters embezzlement and corruption, which has contributed to the failure of extractive projects to help alleviate poverty."

Oxfam supports legislation to reform revenue transparency rules for companies working in developing countries. Last fall, House Financial Services Committee Chairman Barney Frank (D-MA) convened a hearing on the transparency of company payments to host governments. During the hearing, Rep. Frank opened the door for legislative action that could be a powerful step to remedy the problem. A mandatory approach in the US would be an important complement to voluntary initiatives currently in place in only a few countries.

"Many extractive industries projects promise wealth and new job opportunities," says Mamadou Biteye, Oxfam America's Regional Director in West Africa. "Unfortunately, many projects, like gold mining in West Africa, have failed to deliver. These industries create few jobs for locals, and communities rarely see the benefit. Communities need to be empowered with information to have more control over the management of the natural resources necessary to sustain their livelihoods." In 2005, gold accounted for more than 50 percent of Mali's total exports of $297 million, but information about mining revenues is inaccessible for the vast majority of citizens. And despite Mali's gold wealth, it remains one of the poorest and least developed countries in the world.

For more information or to schedule an interview, please contact Maura Hart at (202) 496-1196 or via email at mhart@oxfamamerica.org.

About Oxfam America

Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger, and injustice. Together with individuals and local groups in more than 120 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice. Oxfam America is an affiliate of Oxfam International.

Additional information on Oxfam America's new initiative is available at: www.oxfamamerica.org/rights-resources

For more information please contact:

Maura Hart
Oxfam America
(202) 496-1196

For more CSR news and information from this organization:

video, commentary & research