Saturday, January 29, 2011

Guidelines for profit sharing

The big topic of profit / revenue sharing between producers (mining companies, hydrocarbons, etc.) and a community / limited group of people, is by nature very complex and involves discussions on principles for taxation, fairness, and from the community point of view should require an analysis about equity, distribution, gender impacts, morality of “buying” consent, etc.

In addition to guidelines for the negotiation of revenue sharing schemes,  there are:

(i) voluntary revenue-sharing initiatives and

(ii) certain countries that require revenue sharing with indigenous communties such as Bolivia, e.g. art. 119 of Law 3058 (see my paper on public consultation of indigenous communities), and Guyana, which in addition to requiring the free prior informed consent, sets a minimum amount of revenue that must go to the community and preserves the right for the indigenous peoples in Guyana  to negotiate a higher amount as they control access to all minerals on their lands. I understand that nevertheless, the effectiveness and enforcement of such rights is still highly debatable.

Do you know about other examples?. Please post your comment in this blog or here

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