Page 59 - report_A Matter of Survival

A Matter of Survival

as on the adequacy of the legal arrangements and technical the national entities of the UN Global Compact could play a major
sophistication and expertise in water issues. However, the role in the promotion of citizen diplomacy involving companies
primary importance of transparency in decision making and in at the national level, in cooperation with civil society groups.
the efforts to resolve the relevant tensions and disputes must be
fully appreciated. Regional Arrangements and Inclusion of the
Business Sector
Stakeholders Cooperating – A Voluntary Code A more complex approach is usually required where two or
of Conduct more countries in a geographic region are involved in shared
water management. The basic need in this context is to engage
The existing experience in water governance varies among in water management in a systemic way, both at the basin and
countries and is rarely expressed in a single document. However, ecosystem level, which reinforces the fundamental importance
there are exceptions. An example of a good practice took place of transboundary water cooperation. It is necessary to apply
recently in Mongolia where the International Finance Corporation the basic principles of International Water Law and to design
(IFC) convened the largest mining companies, active in the appropriate financial mechanisms with the aim of developing
country and facilitated the adoption of the Voluntary Code of transboundary water cooperation systems and infrastructures,
Practice (VCP) on Water Management in February 2016. as discussed in earlier chapters. At the same time, lessons
learned in internal, country-specific inter-sectoral cooperation
The Code starts with the commitment of the parties to act discussed in the preceding paragraphs of this chapter should be
transparently and with accountability, to comply with national taken into account.
law and international standards and to engage with local
communities proactively and inclusively. Furthermore, the In addition, there are several specific opportunities resulting
VCP committed the parties to an effective water resource from the necessary cooperation between governments and
management and conservation, to maintain or improve access businesses in the context of transboundary water cooperation.
by the local population to water resources and to support local In such situations, business diplomacy should complement
water infrastructure and services. hydro-diplomacy carried out by governments and people’s
diplomacy involving civil society. A particularly important
The VCP could serve as a conceptual framework for dealing with aspect of communication between businesses and governments
inter-sectoral issues in mining and in other environmentally- relates to the relevant data and information about water where
sensitive industries in comparable situations in other regions of businesses could be of great value to governments. Obviously,
the world. companies generally pursue their interests and plans and, above
all their profit motive, but companies active in the water sector
The voluntary nature of the Code deserves special attention – have to be socially responsible and this is particularly the case
as a guiding principle that can serve a variety of international when they are engaged in transboundary water cooperation.
actors as well as business companies in their efforts to develop
socially responsible business practices. In addition, international Many businesses such as hydropower companies often have
development banks should consider using the principles in the more and better hydrological data than state entities. Sharing
VCP as parts of their conditionalities. this data with state and other actors in the effort to improve
transboundary water cooperation could contribute substantially
At the global level, the UN Secretary-General launched a Global to the overall improvement of transboundary water systems.
Compact in 2000, a set of guiding principles for business Engagement of companies with governments could make these
operations involving improved respect for human rights, labor businesses more aware of political sensitivities and the conflict
standards and environmental concerns. The Global Compact potential around water. This, in turn, increases the safety of their
gradually involved several tens of thousands of businesses investments and long-term profitability.
worldwide, around a set of voluntary principles that include
labor standards, protection of the environment and respect for A specific instrument of inter-sectoral cooperation that has
human rights. been promoted recently is the creation of water funds to which
companies contribute. The objective of these funds, established
The Global Compact includes a CEO Water Mandate, an initiative in several Latin American countries, is to provide investment for
of business leaders in partnership with the international basin protection and the sustainable use of water, increase water
community recognizing the importance of water issues in business production or contribute to payment for ecosystem services. This
operations. The Compact, a voluntary mechanism without an type of instrument is worthy of government attention and support.
intrusive monitoring system, could use this existing CEO Water
Mandate in order to play a key role in promoting best practices Evolving Practice
by major companies aimed at water protection and conservation.
The complexity of inter-sectoral relations at the regional level
The Voluntary Code of Practice on Water Management, tested in depends on the size of the international river or lake basin,
Mongolia, could be used as an example for similar arrangements aquifer, the number of States involved, and the variety of human
in other countries, where there are existing needs. In addition, needs to be satisfied with water from the basin. Historically,

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