Memorandum submitted by the British Geological
Survey
EXECUTIVE SUMMARY
— The geoscience sector contributes
to pro-poor policy in terms of water supplies, economic growth,
employment, environmental education, and avoidance of natural
hazards.
— DFID has largely disconnected itself
from geoscience activities and has absolved its responsibilities
in this area through its contributions to multilateral agencies.
This approach is not effective and disadvantages UK interests.
— DFID has allowed its capabilities
and understanding of the engineering section to run down to a
level where it struggles to be effective in this area of aid.
In cases such as inappropriate developments undertaken by NGOs
and charities, DFID's inability to understand the overall process
can potentially lead to irreversible damage to poor countries.
SPECIFIC COMMENTS
1. The British Geological Survey (BGS) is
a component body of the Natural Environment Research Council which
reports to the DTI via the OST. It is the UK's premier geoscience
organisation with a long history of providing geological advice
and support to DFID and its predecessors.
2. The DFID Departmental Report for 2003
(hereinafter the "Report") provides a clear account
of how UK Government aid policy is applied in the developing world.
Whereas BGS enthusiastically supports the principles of poverty
alleviation as promulgated by the UK Government, we would like
to draw attention to certain development activities which are
relevant to Poverty Reduction Strategies but which we consider
are missing or insufficiently addressed under present DFID policy
initiatives. Our particular focus is, of course, geoscience. This
submission therefore focuses more on what is missing in the report
rather than what it contains.
3. The report refers to international partnerships
among development agencies to reduce poverty, and indicates that
a significant portion of UK assistance (just under 50% in 2001-02)
is channelled through multilateral organisations (EU, World Bank
etc). Although it argues that this increases effectiveness (even
whilst admitting that the efficiency of EU assistance, to which
a quarter of UK aid goes, is poor), a consequence of this is that
much UK aid money is out of DFID's control and direction. In effect,
the UK has adopted a "hands off" approach to certain
sectors, including geoscience to a large degree. Whereas we appreciate
that the UK cannot actively support all sectors equally, we feel
the almost complete withdrawal from this sector is inappropriate.
It means that UK ability to directly support efforts in geoscience—which
are commonly an integral part of other interventions—is
limited. Compared to previous times, few initiatives in this sector
arise from DFID (although BGS would maintain there is still the
same need) so that the only way that BGS can support development
work is via the multinational agencies. This route is often inefficient
and unsatisfactory, and severely mutes our ability to respond
to requests (eg in the case of Afghanistan). It is in sharp contrast
to the way that other western governments provide development
aid through their national geological surveys.
4. In our judgement, the current DFID view
of geoscience results from a lack of proper appreciation of what
this sector offers. Geoscience knowledge provides essential information
needed to make decisions affecting the development of natural
resources. It represents a vital strand of good governance, especially
in developing countries where the economy is often at a less advanced
stage and where primary industry opportunities are limited. In
such situations, natural resources, including minerals, can play
an important part in generating wealth. But the role of geoscience
goes beyond that: geoscience is important to rural livelihoods,
health and protection of both people and the environment. Some
examples of natural resources and the impacts they can have on
sustainable development and poverty alleviation are listed below:
| Resource | Impact
|
| Groundwater | Health, human consumption and irrigation
|
| Base metals mining | Export earnings, local manufacturing industry and employment
|
| Precious metals & gemstone mining | Export earnings and employment
|
Construction raw materials (cement, aggregate,
building stone etc)
| Local industry, reconstruction and employment
|
| Oil/gas | Export earnings and employment
|
| Coal | National energy needs and employment
|
| Natural hazards (landslides, earthquakes) |
Protection of vulnerable communities |
| |
ie the main impacts are therefore on health (potable water
and hazards), local industry (including secondary industries),
and foreign revenue.
5. It is acknowledged that mining suffers from a rather
poor reputation and is often perceived as being wholly negative
and damaging to the environment. However, where the sector is
properly managed by an efficient government geological survey
organisation the economic benefits can be substantial and the
negative impacts avoided. A modern approach considers a whole-of-life
cycle scenario from initial exploration, through mining, to post-mining
rehabilitation. The societal aspects form an integral part of
such life-cycle planning ensuring both environmental protection
and clean-up, appropriate societal infrastructure (schools; public
health) and the provision of alternative industry at eventual
mine closure. The real disasters occur when resource extraction
is ignored and allowed to take place in an unregulated and uncontrolled
manner.
6. The Report (p 23) acknowledges the importance of trade
and investment to developing countries and notes that "it
is essential that developing country governments identify the
constraints facing potential investors". It also refers (p
56 et seq) to "creating economic opportunities". In
terms of mineral development, especially in the context of globalisation,
studies carried out among international mining companies have
consistently reported that unless the proper climate for investment
is in place—including a modern regulatory framework for
mineral exploration and mining, and an efficient geological survey
able to provide base level information on the geology and previous
exploration—then companies will look elsewhere.
7. The importance of developing local industry and jobs
is an essential route to long term economic sustainability. In
many developing and post-conflict countries the exploitation of
minerals can be a relatively rapid and effective route to job
creation, both within the mining development itself and within
the larger economic community that develops around it. Mining
can also generate much-needed foreign revenue for governments.
In post-conflict situations the creation of job opportunities
is vital in order to provide an alternative to the gun or drugs
culture with which much of the population may have grown up. Already
in Afghanistan there is evidence that heroin production is on
the increase.
8. A recent study undertaken by BGS for DFID[3]
provided an in-depth cost-benefit analysis of geological surveys
in developing countries. It concluded that the economic benefits
that accrue in terms of employment and revenue generation are
often many times the original investment. Above all, the development
of a sustainable economy is a pathway to ending emergency humanitarian
assistance.
9. Unfortunately, in our view, DFID interest in supporting
geology in developing and post-conflict countries has, over the
last decade, progressively diminished. Geoscience—which
was previously managed from the Engineering Section and now falls
under the new Policy Division—has been downrated to such
an extent that DFID now possesses hardly any permanent in-house
knowledge. Even though a Geoscience Resource Centre agreement
exists this is rarely called upon for advice. In our view, the
lack of direct involvement in non-renewable natural resources
is misguided and is largely the result of a lack of understanding
of the role of geoscience information.
10. As well as the role the national geological surveys
play in economic mineral development, they also have a responsibility
in matters affecting public health and civil protection. In much
of the developing world, clean water for drinking is an increasingly
scarce commodity. Many of the poorest countries are located in
arid or semi-arid zones and are largely dependent on groundwater,
especially during periods of drought. However, the knowledge needed
to develop these resources in a sustainable manner is often lacking.
Water management is a vital role for government and one that is
likely to become of even greater concern in the future. Water
has been identified as a major potential cause of future international
conflict. Similarly, geological surveys have an important role
to play in provide information and advice on potential natural
hazards, such as identifying landslide- and earthquake-prone areas,
and advising on both infrastructure development and disaster contingency
planning. Time after time, in terms of both water supply and natural
hazards, we see that the main casualties of lack of policy are
the poorest in society.
11. Although DFID works closely with NGOs, we are concerned
that many charities operate without expert knowledge, especially
in relation to water supply. It is worth pointing out that inappropriate
development of groundwater can lead to lasting degradation and
pollution that could be irreversible.
12. We have found in the past that, even where geoscience
is supported (eg via the IUDD's Knowledge and Research programme),
there is a lack of joined-up thinking when it comes to implementation.
For example, country requests for help to implement KaR results
are invariably referred by IUDD to the geographic desks who in
turn maintain that the such activities are not part of the respective
bilateral programme! Consequently, KaR results are seldom implemented.
10 June 2003
3
"The value of geoscience information in less developed countries",
Report CR/02/087N, 2002, A J Reedman et al. Back
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