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A Matter of Survival

as on the adequacy of the legal arrangements and technical role in the promotion of citizen diplomacy involving companies
sophistication and expertise in water issues. However, the at the national level, in cooperation with civil society groups.
primary importance of transparency in decision making and the
efforts to resolve the relevant tensions and disputes must be Regional Arrangements and Inclusion of the
fully appreciated. Business Sector

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

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