Real Estate

Social Safeguards In Developing Countries

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<p><span data-preserver-spaces="true">Developing countries are attractive places and territories for new and huge investments in several industries, such as energy, agribusiness, mining and technology, among others.</span></p><p><span data-preserver-spaces="true">Although desirable, it represents a great challenge due to weak territorial planning and inadequate birth control policies (some official data source shows 7.5 the annual population growth rate).</span></p><p><span data-preserver-spaces="true">So, a demographic explosion has an immediate consequence on the demand and occupation of new lands and a high concentration of population in already habited areas.</span></p><p><span data-preserver-spaces="true">The governments of these countries, often beset by civil wars for long periods, need to concentrate more on having a robust and consensual legal framework that is appropriate and balanced.&nbsp;</span></p><p><span data-preserver-spaces="true">On the other hand, the advantages offered by the demands of the external investment market are the social and environmental safeguards for local communities.</span></p><p><span data-preserver-spaces="true">Proper compliance with the updated national legislation and alignment to the international legal framework of industry best practices are essential elements to harmonize and capitalize on the added value of the investment for economic and social development.</span></p><p><span data-preserver-spaces="true">Through careful planning, the negative impacts of these investments' activities (e.g., land acquisition, temporary or definitive physical and economic displacement of communities, among others) are appropriately balanced. If not possible, they are minimized and mitigated forever to contribute to the social cohesion and economic inclusion of stakeholders, particularly the communities themselves.</span></p><p>&nbsp;</p><h2><span style="font-size: 14pt;" data-preserver-spaces="true">Conclusion</span></h2><p><span data-preserver-spaces="true">Once the civil society was deeply involved in the processes that made the national legislation revision successful, the application complements the IFC's performance standards highlighting the Environmental and Social Impact Assessments among nine other relevant environmental and social safeguards and additional management procedures, according to the flow anticipated on the policies.</span></p><p>&nbsp;</p><p>&nbsp;</p><p><span style="font-size: 10pt;"><em>This article was contributed by our expert&nbsp;</em><a class="editor-rtfLink" href="https://www.linkedin.com/in/emanuel-de-jesus-bomba-8134a3121/" target="_blank" rel="noopener"><em>Emanuel de Jesus Bomba&nbsp;</em></a></span></p><p><span style="font-size: 10pt;" data-preserver-spaces="true">&nbsp;</span></p><h3><span style="font-size: 18pt;" data-preserver-spaces="true">Frequently Asked Questions Answered by Emanuel Bomba</span></h3><p>&nbsp;</p><h2><span style="font-size: 12pt;" data-preserver-spaces="true">1. Why are social safeguards important?</span></h2><p><span data-preserver-spaces="true">Social safeguards policies are important because they provide the essential tools to prevent and mitigate undue harm to people during development.&nbsp;</span></p><p><span data-preserver-spaces="true">When identifying and designing a project, safeguards should help assess the potential social risks and impacts (positive or negative) associated with a development intervention.</span></p><p>&nbsp;</p><h2><span style="font-size: 12pt;" data-preserver-spaces="true">2. What are the minimum social safeguards?</span></h2><p><span data-preserver-spaces="true">The minimum safeguards, part of the EU Taxonomy Regulation, are based on recommendations originating from the European Parliament and the Technical Expert Group. It ensures that any investments or activities labeled as "Taxonomy-aligned" meet specific minimum governance standards and do not violate social norms, including human rights and labor rights.</span></p><p><span data-preserver-spaces="true">Compliance with the minimum safeguards is determined by assessing performance criteria against four core topics:</span></p><ul><ul><li class="ql-indent-1"><span data-preserver-spaces="true">Human rights, including workers' rights</span></li><li class="ql-indent-1"><span data-preserver-spaces="true">Bribery/corruption</span></li><li class="ql-indent-1"><span data-preserver-spaces="true">Taxation</span></li><li class="ql-indent-1"><span data-preserver-spaces="true">Fair competition</span></li></ul></ul><p><span data-preserver-spaces="true">&nbsp;</span></p><h2><span style="font-size: 12pt;" data-preserver-spaces="true">3. What are safeguards in development?</span></h2><p><span data-preserver-spaces="true">In its essentials, safeguards in development processes ensure social, economic, and even political inclusion through consultation and involvement in the concerned communities' decision-making processes without considering their social or ethnic conditions.</span></p><p><span data-preserver-spaces="true">Social standards aim to ensure the well-being, protection, human rights, and social and economic reintegration of communities covered by development projects, among other good practices.</span></p><p>&nbsp;</p><h2><span style="font-size: 12pt;" data-preserver-spaces="true">4. What is the Environmental and Social Management Framework?</span></h2><p><span data-preserver-spaces="true">The Environmental and Social Management Framework (ESMF) is the tool to guide the identification and management of potential negative environmental and social impacts of proposed projects and serves as a platform for consultations with stakeholders and project beneficiaries.</span></p><p><span data-preserver-spaces="true">&nbsp;</span></p>
KR Expert - Emanuel de Jesus Bomba