Barrick Gold Case PDF

 

Accoun ting g For Forum um 38 (20 (2014) 14) 91– 91–108 108 Accountin

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Corporate accountability and human rights disclosures: A case study of Barrick of  Barrick Gold Mine in Tanzania Sarah Lauwo a , Olatunde Olatunde Julius  Julius Otusanya b ∗

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a b

Essex Essex Busine Business ss School, School, Uni Univers versity ity of Essex, Essex, Uni United ted Kin Kingdo gdom m Departm Dep artment ent of Acc Accoun ountin ting, g, Uni Univers versity ity of Lagos, Lagos, Nigeri Nigeria a

a r t i c l e

i n f o

 Article history: Receiv Received ed 9 August August 201 2012 2 Rece Receiv ived ed in revi revise sed d form form 7 Ju June ne 2013 2013 Acc Accept epted ed 11 Jun June e 2013 2013 Availa Ava ilable ble on onlin line e 26 Jul July y 201 2013 3

Keywords: Accounting Accountability Social accounting Human righ rights ts Globalisation Developing countries Tanzania

a b s t r a c t

Analysis and debate on the roles of  of accounting accounting in human rights issues is an emerging topic of  research. This study draws attention to certain human rights dilemmas arising from investment initiatives of  transnational corporations within the Tanzanian socio-political and economic context. Evidence is prov provided ided on how how accounting operates in resolving such dilemmas thro dilemmas through ugh an examination of  of foreign foreign direct investment episodes where the state has has agre agreed ed contracts with transnational corporations in the mining sector of  Tanzania. The study finally considers the possibility of  corporate governance reforms informed by accounting ideas in order to promote realisation of  of human human rights alongside other interests. © 2013 2013 Elsevier Ltd. All rights reserved.

1. Intr Introd oduc ucti tion on

In th the e co cont ntem empo pora rary ry gl glob obal al eco econo nomy my,, th the e libe libera rali lisa sati tion on of mark market ets, s, in incr crea easi sing ng flo flow w of in info form rmat atio ion n te tech chno nolo logy gy an and d th the e 1 rapid rap id mov moveme ement nt of capita capitall aro aroundthe undthe glo globe be have have increa increasedthe sedthe size, size, rea reach,power ch,power andinflue andinfluence nce of cor corpor porati ations( ons(Klein Klein,, 2001; Monbio Mon biot, t, 200 2001 1). Corp Corpor orat atio ions ns,, part partic icul ular arly ly tr tran ansn snat atio iona nall co corp rpor orat atio ions ns (TN (TNCs Cs), ), have have argua arguabl bly y be beco come me th the e most most po power werfu full cate categor gory y of ‘e ‘ent ntit ity’ y’ in th the e gl glob obal al econ econom omy, y, with with th the e larg larges estt ones ones reac reachi hing ng in into to vi virt rtua uall lly y ev every ery co coun untr try y of th the e worl world d (Bakan, 2004 20 04;; Ko Kort rten en,, 20 2001 01). ). Gl Glob obal al co corp rpor orat atio ions ns have have finan financi cial al res resour ource cess an and d poli politi tica call re reac ach h th that at ri riva vals ls or exce exceed edss many many nati nation on st stat ates es (The The Ti Time mes, s, 20 2012 12). ). However However,, there there are tensio tensions ns bet betwee ween n the cor corpora porate te pursuit pursuit of busine business ss obj object ective ivess of profita profitabil bility ity,, as in inst stit itut uted ed in a co corp rpor orat ate e gover governa nanc nce e st struc ructu ture, re, and and th the e huma human n righ rights ts of popu popula lati tion onss wi with thin in th the e ho host st st stat ates es wher where e su such ch Cooper, er, Coul Coulson son,, & Tay Taylor lor,, 201 2011; 1; Sik Sikka, ka, 201 2011; 1; Whe Whelan lan,, Moo Moon, n, & Orl Orlitz itzky, ky, 200 2009 9). corpor cor porati ations ons seek seek to inv invest est (fo (forr exa exampl mple e see Coop Yet, Yet, co conv nven enti tion onal al th theo eori ries es such such as agen agency cy th theo eory ry freq frequen uentl tly y ce cele lebr brat ate e th the e purs pursui uitt of priva private te profi profits ts or sh shar areh ehol olde derr weal wealth th maximisat maxim isation ion whil while e offer offering ing little little help in explor exploring ing the tensions tensions betwe between en corporate corporate power and society. society.2 At th the e sa sametime metime,, th the e comple com plex x for forms ms of financi financial al and eco econom nomic ic tra transa nsacti ction on (su (such ch as str struct ucturedinvest uredinvestmen mentt ins instru trumen ments) ts),, design designed ed by corpor corporati ations ons oper operat atin ing g in glob global al ma mark rket etss to incr increa ease se ca capi pita tall and and profi profit, t, ca can n be seen seen,, from from ot othe herr econ econom omic ic or so soci cial al ju just stic ice e pers perspe pect ctiv ives es,,

Correspo Corr espondin nding g auth author or at:Essex BusinessSchool BusinessSchool,, Univ Universi ersity ty of Essex, Essex, WivenhoePark, WivenhoePark, Colchest Colchester, er, Essex Essex CO4 3SQ,UnitedKingdom. 3SQ,UnitedKingdom. Tel.:+44 1206874463 1206874463.. E-mail addresses: E-mail addresses: [email protected], Lauwo). [email protected], [email protected] (S. Lauwo). 1 Corpor Corporate ate activi activity ty aff affect ectss practi practica cally lly every every asp aspect ect of our liv lives es (e.g. the rig right ht to foo food, d, she shelte lter, r, saf safety ety at wo work, rk, non-d non-disc iscrim rimina inatio tion, n, cl clean ean env enviro ironm nment ent,, Mitche chell ll & Sik Sikka, ka, 200 2005 5). education educa tion,, healthca healthcare) re) (Mit 2 Und an, 197 1970; 0; Jen Jensen sen,, 198 1989 9). This Under er suc such h theor theories ies,, the corpo corporat rate e com commi mitme tment nt is to increa increase se profits profits and to max maxim imise ise sha shareh rehol older der wea wealth lth (see (see Friedm Friedman, ∗

may or ma may y notcomplem notcomplementsoci entsocial al obj object ective ivess suc such h as hum human an rig rightsissue htsissues, s, butis still still thepredo thepredomin minantstra antstrateg tegic ic route route fora firm firm,, inc includ ludin ing g a TNC, TNC, to follo follow. w. 0155-9982 0155-9 982/$ /$ – see front front ma matte tterr © 2013 2013 Els Elsevi evier er Ltd. Ltd. All right rightss reserv reserved. ed. http://dx.do http://dx.doi.org/10.1016/j.a i.org/10.1016/j.accfor.2013.06.002 ccfor.2013.06.002

 

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S. La Lauw uwo, o, O. O.J. J. Ot Otusa usany nya a / Acco Accoun unti ting ng Foru Forum m 38 (2014)91–1 (2014)91–108 08

ˇ  c, to pose pose si sign gnifi ifica cant nt ch chal alle leng nges es as to how how to make make a co corp rpor orat atio ion n acco accoun unta tabl ble e an and d re resp spon onsi sibl ble e fo forr hu huma man n ri righ ghts ts is issu sues es (Cerniˇ  2010 20 10;; Un Uner erma man n & O’ O’Dw Dwye yer, r, 20 2010 10;; Wh Whel elan an et al al., ., 20 2009 09). ). As TNCs TNCs inv invest est in dev develo elopin ping g cou countr ntries ies thr through ough for foreig eign n invest investmen mentt contra contracts cts,, the ter terms ms entered entered upon upon in the invest investmen mentt agreements agreem ents may co cons nstr trai ain n the the host host st stat ate’ e’ss ab abil ilit ity y to gover govern n or re rest stri rict ct th the e acti activi viti ties es of large large co corp rpor orat atio ions ns on th the e gr grou ound nd,, an and d 2011). ). In the contex contextt of global globalisa isatio tion, n, it appear appearss to pro promot mote e the realis realisati ation on of basic basic human human rights rights for loc local al popula populatio tions ns (Sikka, 2011 thatt the abi tha abilit lity y of a dev develo elopin ping g cou countr ntry’s y’s governm government ent to set and enf enforc orce e reg regula ulatio tions ns that that promot promote e corpor corporate ate accoun accountab tabili ility ty fo forr hu huma man n ri righ ghts ts obli obliga gati tion onss re rema main inss prob proble lema mati tic. c. So even even if in co cont ntem empor porar ary y gl glob obal alis ised ed se sett ttin ings gs,, hu huma man n ri righ ghts ts is issu sues es are are increa inc reasin singly gly hig highli hlight ghted ed as factor factorss tha thatt need need to be tak taken en int into o con consid sidera eratio tion n withinthe withinthe corpor corporate ate gove governa rnance nce sys system tem,, exi existi sting ng co corp rpor orat ate e gove govern rnan ance ce poli polici cies es co cont ntin inue ue to be domi domina nate ted d by the the noti notion on of maxi maximi misi sing ng shar shareh ehol olde derr va valu lue e (for (for examp example le,, se see e McSwee McSweeney, ney, 2009 2009). ). In th this is co cont ntex ext, t, th there ere is an incr increa easi sing ng need need fo forr rese resear arch ch fo focu cusi sing ng on th the e te tens nsio ion n be betw tween een priv privat ate e purs pursui uitt of profi profita tabi bili lity ty and the the enjo enjoym ymen entt of hum uman an ri righ ghtts by lo loca call po popu pullat atiions ons in host ost st stat ates es.. Th Ther ere e is also lso argu arguab ablly a more ore spec speciific need eed fo forr such suc h resear research ch wit within hin accoun accountin ting, g, giv given en the rol roles es that that acc accoun ountin ting g and acc accoun ountab tabili ility ty ideas ideas and pra practi ctices ces play play in constr construct ucting ing the the cont contra ract ctss th thro roug ugh h whic which h TNCs TNCs en enac actt thei theirr inve invest stme ment nt init initia iati tive vess in ho host st coun countr trie ies. s. Ye Yett it has has be been en no note ted d (e.g . Cooper et al al., ., 20 2011 11;; Si Sikk kka, a, 20 2011 11)) tha thatt lit little tle such such resear research ch has as yet been been gen genera erated ted within within the accoun accountin ting g lit litera eratur ture. e. Ins Instea tead d hum human an ri righ ghts ts issu issues es in ho host st co coun untr trie iess wh wher ere e TN TNCs Cs have have co cont ntra ract ctss have have be been en most mostly ly di disc scus usse sed d in di disc scip ipli line ness su such ch as law, law, so soci ciol olog ogy, y, Cerniˇ  Cerni c, ˇ  201 2010; 0; Muc Muchli hlinsk nski, i, politi pol itical cal studie studies, s, econom economics ics,, int intern ernati ationa onall relati relations ons,, man manage agemen mentt and public public adm admini inistr strati ation on (see ˇ  2012 20 12;; Ra Rabe bet, t, 20 2009 09;; Sh Shel eldo don, n, 20 2010 10;; Wh Whel elan an et al al., ., 20 2009 09). ). In rece recent nt ye year ars, s, ho howe wever ver,, th ther ere e have have be been en call callss fo forr th the e acco accoun unti ting ng scho schola lars rs to en enga gage ge wi with th th the e di disc scou ours rse e of hu huma man n ri righ ghts ts,, Gall llho hofe fer, r, Ha Hasl slam am,, & Wa Walt lt,, 20 2011 11;; Si Sikk kka, a, 20 2011 11). ). On One e re resp spon onse se has has in part partic icul ular ar the the hu huma man n ri righ ghts ts ob obli liga gati tion onss of TNCs TNCs (see (see Ga be been en to posi positi tion on hu huma man n ri righ ghts ts wi with thin in br broa oade derr deba debate tess abou aboutt co corp rpor orat ate e acco accoun unta tabi bili lity ty an and d respo respons nsib ibil ilit ity y an and d it itss im impa pact ct on hu huma mani nita tari rian an,, ecol ecolog ogic ical al,, wo workp rkpla lace ce and and so soci cial al issu issues es af affe fect ctin ing g soci societ ety y at larg large e (s (see ee Coop Cooper er et al. l.,, 201 011; 1; Ga Gall llh hof ofer er et al. l.,, 2011 20 11;; Si Sikka kka,, 20 2011 11). ). Fo Forr ex exam ampl ple, e, a case case st stud udy y Co Coop oper er et al al.. (2 (201 011) 1) has ex exam amin ined ed th the e ri righ ghtt to a sa safe fe work workin ing g en envi viro ronm nmen entt wher wh ere e th the e pu purs rsui uitt of pr priv ivat ate e pr profi ofitt resu result lted ed in pr prev even enta tabl ble e deat death h and and in inju juri ries es.. Sikka Sikka (20 (2011) 11) has ex exam amin ined ed th the e purs pursui uitt of  pri privat vate e int intere erests sts throug through h for foreig eign n dir direct ect invest investmen mentt agreem agreement entss and showed showed tha thatt the sta stabil bilisa isatio tion n clause clausess contai contained ned in the agreem agr eement ent con constr strain ained ed the abi abilit lity y of compar comparati ativel vely y poo poorr hos hostt cou countr ntries ies to protec protectt and promot promote e basic basic hum human an rig rights hts.. Alth Althou ough gh the the pr pres esen entt stud study y is in broa broad d ag agre reem emen entt with with the the fin findi ding ngss of th the e re rece cent nt li lite tera ratu ture re,, it itss ob obje ject ctiv ive e is to make make a somewh som ewhat at dif differ ferent ent contri contribut bution ion to this this eme emergi rging ng lit litera eratur ture e on acc accoun ountin ting g and hum human an rig rightsby htsby consid consideri ering ng how acc accoun ountin ting g idea ideass and and di disc scou ours rses es ma may y be used used to op open en up th the e oppo opport rtun unit ity y fo forr loca locall po popul pulat atio ions ns to purs pursue ue hu huma man n ri righ ghts ts is issu sues es relat relatin ing g to TN TNC C in init itiiat ativ ives es.. In thi hiss way way it may beco become me ea easi sier er to se see e ac acco coun unti ting ng as a prac practi tice ce th that at is no nott on only ly si simp mply ly loca locate ted d with within in a co cont ntex extt bo boun unde ded d by co corp rpor orat ate e or st stat atee-le leve vell enti entiti ties es,, and and th thei eirr in inte tern rnal al acti activi viti ties es an and d do docu cume ment nts, s, bu butt also also as so some meth thin ing g thatt ope tha operat rates es across across a cer certai tain n contex contextt tha thatt inc includ ludes es loc local al pop popula ulatio tions, ns, and not lea least st those those who wor work k loc locall ally y wit within hin corpora corporate te entiti ent ities. es. By extend extending ing our imp implic licit it sen sense se of ‘co ‘conte ntext’ xt’ in this this way way,, we may begin begin to perceiv perceive e ways ways in which which hos hostt sta state te corpora corporate te govern gov ernanc ance e regimes regimes may be able able to sh shap ape e (a (ass well well as be shap shaped ed by by)) wh what at acco accoun unti ting ng do does es an and d says says wi with thin in co corp rpor orat ate e an and/ d/or or stat tate act activ ivit itie iess and docu docume ment ntss. Th The e st stud udy y seeks eeks to sugge uggest st ho how w thi hiss may may be poss possib ible le th thro roug ugh h un unde derl rlin inin ing g some some of th the e potent pot ential ially ly sig signifi nifican cantt implic implicati ations ons of doc docume uments nts typ typica ically lly inc incorp orpora orated ted as part part of the contra contracts cts sig signed ned by TNCs TNCs in launch launching ing invest inv estmen mentt ini initia tiativ tives es in develo developin ping g cou countr ntries ies,, par partic ticula ularly rly tho those se con concer cerned ned with with social social accoun accountin ting g dis disclo closur sures es and so wit with h ac acco coun unta tabi bili lity ty aspe aspect ctss of huma human n ri righ ghts ts issu issues es.. The The main main ar argu gume ment nt put fo forw rwar ard d is th that at co corp rpor orat ate e acco accoun unta tabi bili lity ty to hu huma man n righ rights ts ob obli liga gati tion onss cont contin inue uess to be deve develo lope ped d with within in th the e shad shadow ow of th the e exis existi ting ng syst system emss of corp corpor orat ate e gove govern rnan ance ce,, ev even en whil wh ile e thes these e co cont ntin inue ue to be cent centre red d upon upon a shar shareh ehol olde derr pr profi ofitt maxi maximi misa sati tion on mode model. l. This This sh shar areh ehol olde derr pr prim imac acy y mo mode dell of  corporate corpor ate governa governance nce may in practi practice ce repe repeate atedly dly neg neglec lectt or dow downpl nplay ay soc social ial issues issues,, includ including ing human human rig rights hts obliga obligatio tions, ns, but the contra contracts cts signed signed by mod modern ern bus busine iness ss corpora corporatio tions ns com commit mit the them m to for forms ms of social social acc accoun ountin ting g which which are now emb embedd edded ed as aspe pect ctss of th thei eirr docum documen enta tary ry se self lf-p -pres resen enta tati tion on in a ra rang nge e of loca locati tion ons, s, such such as annu annual al rep repor orts ts,, CSR repor reports ts an and d ot othe herr publ public ic Muchli hlinsk nski, i, 201 2012 2). In th this is conn connec ecti tion on th the e st stud udy y co cons nsid iders ers th the e possi possibi bili lity ty of co corp rpor orat ate e gov gover erna nanc nce e relati relations ons rel releas eases es (see (see Muc re refo form rmss in info form rmed ed by acco accoun unti ting ng idea ideass in or orde derr to pr prom omot ote e re real alis isat atio ion n of hu huma man n ri righ ghts ts alon alongs gsid ide e ot othe herr in inte tere rest sts. s. One One dist distin inct ctiv ive e fe feat atur ure e of th this is st stud udy y is th that at it of offe fers rs some some insi insigh ghts ts from from a di diff ffer eren entt so soci cioo-po poli liti tica call an and d econ econom omic ic co cont ntex ext. t. McSwee weeney ney (20 (2000) 00) has st stre ress ssed ed,, ‘con ‘conte text xt info inform rmss unde unders rsta tand ndin ings gs bu buil iltt in into to the the quest questio ions ns;; th the e evide evidenc nce e avai availa labl ble e fo forr As McS an answ swer erin ing g th the e qu ques esti tion ons; s; th the e ac actu tual al mult multii-la laye yered red ope opera rati tion on of th the e proce process sses es wi with thin in co cont ntex exts ts;; an and d th the e co cons nsti titu tuti tion on of of,, an and d change cha ngess in, those those con contex texts’ ts’ (p. 845). 845). The stu study dy examin examines es cor corpor porate ate acc accoun ountab tabili ility ty and hum human an rig rights hts obliga obligatio tions ns in Tanzan Tanzania, ia, a de deve velo lopi ping ng co coun untr try y in Ea East st Afric Africa. a. As one one of th the e poore poorest st co coun untr trie iess in th the e worl world d Ta Tanz nzan ania ia ha hass in re rece cent nt ye year arss im impl plem emen ente ted d a num umbe berr of refo reform rmss ad advo voca cate ted d by the the Worl orld Ba Bank nk (WB (WB) an and d the the In Inte tern rna ati tion onal al Mon Monet etar ary y Fu Fund nd (I (IMF MF), ), in orde orderr to att ttra ract ct for foreig eign n inv invest estmen mentt partic particula ularly rly by transn transnati ationa onall cor corpor porati ation on operati operations ons.. However However,, it has been been shown shown tha thatt the invest investmen mentt contra con tracts cts,, in par partic ticula ularr the sta stabil bilisa isatio tion n clause clausess agreed agreed therei therein, n, hav have e created created dil dilemm emmas as for the Tanzan Tanzanian ian gove governm rnment ent in that that its cap capaci acity ty to pro promot mote e cor corpor porate ate acc accoun ountab tabili ility ty and res respon ponsib sibili ility ty to hum human an rig rights hts iss issues ues is being being signifi significan cantly tly con constr strain ained ed (see Bi Bita tala la,, 20 2008 08;; Ki Kitu tula la,, 20 2006 06;; La Lauw uwo, o, 20 2011 11). ). In pa part rtic icul ular ar,, th the e st stud udy y fo focu cuse sess on th the e Tanz Tanzan ania ian n mi mini ning ng sect sector or wher where e th the e Bitala ala,, 200 2008; 8; Kit Kitula ula,, 200 2006; 6; The Gua Guardi rdian, an, 200 2009b 9b). ). hu huma man n ri righ ghts ts prac practi tice cess of la larg rge e TNCs TNCs ha have ve be been en a su subj bjec ectt of deba debate te (s (see ee Bit A case case stud study y wa wass de desi sign gned ed to draw draw at atte tent ntio ion n to th the e dyna dynami mics cs of hu huma man n ri righ ghts ts prac practi tice cess and and th the e di dile lemm mmas as face faced d by th the e Tanzan Tan zanian ian citize citizens ns in realis realising ing the rights rights to have have a saf safe e and clean clean wor workin king g enviro environme nment, nt, to non-di non-discr scrimi iminat nation ion and equ equal al pay at wor work, k, and to freedo freedom m of ass associ ociati ation. on. A cas case e stu study dy allows allows for inv invest estiga igatin ting g a contem contempor porary ary phe phenom nomeno enon n in a contex contextt where where th the e bo boun unda dari ries es be betw tween een th the e phen phenom omen enon on and and th the e co cont ntex extt ar are e blurr blurred ed an and d mult multip iple le so sour urce cess of ev evid iden ence ce are are empl employ oyed ed (Yin,

 

S. Lauwo, Lauwo, O. O.J. J. Ot Otus usan anya ya / Acco Accoun unti ting ng Foru Forum m 38 (2014 (2014)) 91– 91–108 108

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2003). ). The The da data ta for for th the e ca case se st stud udy y was was obta obtain ined ed from from ar arch chiv ival al docum documen ents ts,, soci social al re resp spon onsi sibi bili lity ty re repo port rtss in info form rmat atio ion n from from 2003 corp corpor orat ate e we webs bsit ites es,, ne news wspa pape perr clip clipss and and any any ot othe herr publ public icly ly avai availa labl ble e so soci cial al in info form rmat atio ion. n. The The an anal alys ysis is of Barr Barric ick k Bu Buzw zwag agii Gold Gol d Min Mine’s e’s minera minerall develo developme pment nt agr agreem eement ent provid provides es a good case case of how the ter terms ms contra contractu ctuall ally y agr agreed eed for an invest investmen mentt initiative initi ative may cons constr trai ain n the the abil abilit ity y of a deve develo lopi ping ng co coun untr try’ y’ss go gover vernm nmen entt to de deve velo lop p regul regulat atio ions ns th that at prot protec ectt and and prom promot ote e the the rea reali lisa sati tion on of hu huma man n ri righ ghts ts.. Th The e anal analys ysis is of annu annual al re repo port rtss and and CS CSR R re repo port rtss de demo mons nstr trat ate e ho how w mi mini ning ng co comp mpan anie iess have have resp respon onde ded d to the the cons constr trai aint ntss se seem emin ingl gly y impo impose sed d by the the term termss ag agre reed ed in th thei eirr in inve vest stme ment nt cont contra ract ctss in ways ways th that at fail fail to safe safegu guar ard d su such ch ri righ ghts ts in th the e ma mann nner er or orig igin inal ally ly en envi visa sage ged. d. Yet Yet the the es esta tabl blis ishm hmen entt of CS CSR R re repo port rtss as an in inte tegr gral al fe feat atur ure e of  corp corpor orat ate e self self-p -pre rese sent ntat atio ion n indi indica cate tess th that at past past appr approa oach ches es do ch chan ange, ge, ev even en if no nott as yet yet in ways ways th that at de deci cisi sive vely ly tr tran ansf sfor orm m the hum human an rig rights hts prospe prospects cts of loc local al pop popula ulatio tions. ns. rovides es a th theo eore reti tica call pers perspe pect ctiv ive e on hu huma man n ri righ ghts ts,, wi with th a fo focu cuss on de devel vel-Th This is pape paperr is stru struct ctur ured ed as fo foll llow ows. s. Sect Sectio ion n 2 provid oping opi ng countr countries ies.. This This sec sectio tion n consid considers ers how the int intens ensific ificati ation on of global globalisa isatio tion n and the adopti adoption on of neo neo-li -liber beral al pol polici icies es have have increased increa sed the pow power er of corpor corporati ations ons,, esp especi eciall ally y TNC TNCs, s, but hav have e the thereb reby y create created d a governa governance nce dil dilemm emma a which which has adv advers ersely ely affect affected ed the pro promot motion ion and enforc enforceme ement nt of fun fundam dament ental al hum human an rights rights partic particula ularly rly in dev develo elopin ping g countr countries ies.. Sectio Section n 3 provides vid es an ana analys lysis is of thesocio thesocio-ec -econo onomicdevel micdevelopm opmentof entof Tan Tanzan zania ia as a bac backgr kgroun ound d forunderstan forunderstandin ding g human human rig rightsdilem htsdilemmas mas.. Section 4 looks ooks at th the e mini mining ng sect sector or in Tanz Tanzan ania ia.. Sect Sectio ion n 5 exami xamine ness a Mine Minera rall De Deve velo lopm pmen entt Agree Agreeme ment nt (MDA) (MDA) re rela lati ting ng to Barric Bar rick k Buz Buzwag wagii in order order to show show how the ter terms ms agr agreed eed on the contra contract ct have have constr constrain ained ed the Tanzan Tanzaniangovern iangovernmen ment’s t’s abi abilit lity y to pr prot otec ectt the the en envi viro ronm nmen ent, t, an and d pr prom omot ote e heal health th and and sa safe fety ty an and d labo labour ur st stan anda dard rds, s, and and th thus us to pr prom omot ote e th the e re real alis isat atio ion n of  xami mine ness th the e CSR st stat atem emen ents ts of th the e se sele lect cted ed mi mini ning ng co comp mpan any y fo forr 20 2003 03–2 –201 010 0 in or orde derr to draw draw basic bas ic human human rights rights.. Sectio Section n 6 exa attent attention ion to the claims claims made made on the commit commitmen mentt to hum human an rightsissuesboth rightsissuesboth loc locall ally y (lo (local cal report reports) s) as well well as int intern ernati ationa onally lly rovidess a con conclu cludin ding g dis discus cussio sion. n. (in the par parent ent com compan pany y reports reports). ). Sectio Section n 7 provide 2. Gl Globa obali lisat sation ion,, cor corpor porate ate acc accoun ountab tabil ility ity and hum human an rights rights:: som some e theore theoreti tical cal issue issuess

Th The e past past fe few w deca decade dess ha have ve witn witnes esse sed d sign signifi ifica cant nt ch chan anges ges in so soci cio-p o-pol olit itic ical al and and econ econom omic ic fo forc rces es,, wh whic ich h ha have ve ch chan ange ged d the the na natu ture re and and si size ze of co corp rpor orat atio ions ns and and led led to th the e bu busi sine ness ss-r -rel elat ated ed hu huma man n ri righ ghts ts de deba bate te (s (see ee Amnes Amnesty ty Intern Internation ational, al, 2003 2003,, 2006; 200 6; Muc Muchli hlinsk nski, i, 200 2009; 9; Rug Ruggie gie,, 201 2010 0). The rap rapidl idly y growing growing signifi significan cance ce of inf inform ormati ation on and commun communica icatio tion n techno technolog logy y in production,marketisationand production,marketisa tionand financ financiali ialisatio sation n has actedas a majordriving majordrivingforcefor forcefor econom economic ic globalisa globalisation( tion(Cox, Cox, 1996;Sklair, 1995; 199 5; Tom Tomlin linson son,, 199 1999 9). Capi Capita tali lism sm has has beco become me a key key feat featur ure e of the the cont contem empo pora rary ry worl world d th that at shap shapes es th the e soci social al re rela lati tion onss Held ld an and d Mc McGre Grew, w, 20 2002 02). ).3 In the con contem tempor porary ary cap capita italis lism m eco econom nomy, y, large large corpor corporati ations ons incl in clud udin ing g hu huma man n ri righ ghts ts ag agen enda dass (He ha have ve be been en able able to unde undert rtak ake e fun funda dame ment ntal al tr tran ansf sfor orma mati tion on in orde orderr to in incr crea ease se th thei eirr mark market et re reac ach, h, shar share e an and d profit profitab abil ilit ity y (Reed Reed,, 20 2011 11;; Skl Sklai air, r, 19 1995 95). ). Th This is has has enta entail iled ed usin using g a va vari riet ety y of finan financi cial al an and d econ econom omic ic tr tran ansa sact ctio ions ns,, su such ch as fin finan anci cial alis isat atio ion n and str struct uctured ured invest investmen mentt contra contracts cts,, whi which ch may hav have e ser seriou iouss imp implic licati ations ons for corpor corporate ate acc accoun ountab tabili ility ty to social social iss issues ues such such Unerma rman n & O’D O’Dwye wyer, r, 201 2010 0). As a res result ult,, corpor corporati ations ons,, par partic ticula ularly rly TNC TNCs, s, hav have e become become active active player playerss in the as hu huma man n ri righ ghts ts (Une global glo bal eco econom nomy y (Bakan, Bakan, 200 2004; 4; Har Harvey vey,, 200 2005; 5; Kor Korten ten,, 200 2001 1).4 Acco ccordi rding ng to Monbiot Monbiot (2001) (2001),, co comp mpan anie iess no now w he help lp to provi provide de soci social al serv servic ices es an and d offe offerr fund fundin ing g to po poli liti tica call pa part rtie iess an and d ou ourr univ univer ersi siti ties es as well well as sh shap apin ing g ec econ onom omic ic and and soci social al poli policy cy (p. (p. 3) 3).. Howe Howeve ver, r, the the bu burg rgeo eoni ning ng gr grow owth th of TNCs TNCs in the the glob global al ec econ onom omy y have have be been en para parall llel eled ed by co conc ncer erns ns ov over er th the e impa impact ctss of  Kinley ley,, Nol Nolan, an, & Zer Zerial ial,, 200 2007; 7; Mur Murphy phy,, 201 2011 1). Public Public anxiet anxieties ies about about protec protectio tion n and busine bus iness ss on soc social ial and hum human an rights rights (see Kin pr prom omot otio ion n of hu huma man n ri righ ghts ts ar are e fuel fuelle led d by th the e incr increa easi sing ng go gover verna nanc nce e ga gap p crea create ted d by ne neol olib iber eral al poli polici cies es im impl plem emen ente ted d in th the e globalisin globa lising g era. In theconte thecontempo mporar rary y global globalisa isatio tion n era, era, theidea tha thatt corpor corporati ationsshoul onsshould d be runwith theprimary theprimary goa goall of maximi maximisin sing g shareshareEzzamel, l, Will Willmott, mott, & Worth Worthingto ington, n, holder hol der value value hascome to dom domina inate te thecorporate thecorporate gov govern ernanc ance e regi regimes mes of many many cou countr ntries( ies(Ezzame 2008; 200 8; McS McSwee weeney ney,, 200 2009; 9; O’S O’Sull ulliva ivan, n, 200 2007 7). With Within in th the e co corp rpor orat ate e gov gover erna nanc nce e fram framew ewor ork k th the e fu fund ndam amen enta tall ob obli liga gati tion on of a corpor cor porati ation on is toward towardss the their ir shareh sharehold olders ers,, and compan company y dir direct ectors ors enjoy enjoy consid considera erable ble autono autonomy my to approp appropria riate te econom economic ic surplu sur pluses ses for sha shareh rehold olders ers (see (see Mill Millst stei ein n & Ma MacA cAvoy voy,, 19 1998 98). ).5 R elyi e lying ng on th the e cont contes esta tabl ble e no noti tion on th that at a corp corpor orat atio ion’ n’ss so sole le respon res ponsib sibili ility ty is to its sha shareh rehold olders ers,, Fried Friedman man (1970 (1970)) argued rgued,, ‘t ‘the here re is one one an and d on only ly on one e soci social al re resp spon onsi sibi bili lity ty of bus busin ines esss an and d th that at is to make make as mu much ch mo mone ney y fo forr the the sh shar areh ehol olde ders rs as po poss ssib ible le’. ’. As th the e agen agency cy and and ot othe herr ec econ onom omic ic th theo eori ries es de decl clar ared ed th the e shareh sha rehold olders ers’’ int interes erestt to be the gen genera erall int intere erest, st, oth other er sta stakeh kehold older’ er’ss int intere erests sts,, such such as hum human an rig rights hts,, rarely rarely fea featur tured ed within within Agli liet etta ta & Re Rebé béri riou oux, x, 20 2005 05;; Ar Aras as & Cr Crow owth ther er,, 20 2008 08). ). In Inde deed ed,, th the e ex exte tent nt to the the exis existi ting ng co corpo rpora rate te go gover verna nanc nce e st stru ruct ctur ures es (Ag whic wh ich h co comp mpan anie iess ca can n be he held ld acco accoun unta tabl ble e fo forr huma human n ri righ ghts ts obli obliga gati tion onss wi with thin in the the exis existi ting ng co corp rpor orat ate e gove govern rnan ance ce sy syst stem em Much chli lins nski ki,, 20 2012 12,, p. 16 163 3). Corp Corpor orat atio ions ns are are crea creatu ture ress of laws laws,, bu butt co corp rpor orat ate e re resp spon onsi sibi bili lity ty to ha hass re rema main ined ed qu ques esti tion onab able le (Mu resp respec ectt huma human n ri righ ghts ts has has no nott been been fr fram amed ed as a bind bindin ing g ob obli liga gati tion on un unde derr th the e ex exis isti ting ng le lega gall fram framew ewor ork k (s (see ee Muchlinski, 2012; 201 2; Rug Ruggie gie,, 201 2010 0). With Within in th the e exis existi ting ng co corp rpor orat ate e laws laws,, th the e obli obliga gati tion on of a co corp rpor orat atio ion n to re resp spec ectt hu huma man n ri righ ghts ts is seen seen as a ‘r ‘res espo pons nsib ibil ilit ity’ y’ ra rath ther er th than an a ‘dut ‘duty’ y’ (see (see Muc Muchli hlinsk nski, i, 201 2012, 2, p. 147 147). ).

3

Capitalis Capita lism m is consi consider dered ed as the only only via viable ble altern alternati ative ve for the surviv survival al of the the global global ma marke rkets. ts. ah,, 20 2000 00,, p. 2); thei theirr ca capa paci city ty to sh shap ape e the the po poli licy cy agen agenda dass of  Th The e powe powerr of TN TNCs Cs has has be been en li link nked ed int inter er alia alia to to:: th the e si size ze of th thei eirr econ econom omic ic weal wealth th (Curr Currah national nati onal-sta -states tes and inte internat rnationa ionall bodies bodies (Kor Korten ten,, 200 2001, 1, p. 60 60); ); and their their mo momen mento tous us imp impact act (Marsde Marsden n and An Andri driof, of, 199 1998 8). 5 The cor corpor porate ate accoun accountab tabili ility ty to the shareh sharehold olders ers is even even legiti legitimi mised sed wi withi thin n the existi existing ng corpor corporate ate govern governan ance ce system system,, for exa exampl mple, e, Sec Sectio tion n 172 of the the UK Com Compan paniesAct iesAct 200 2006 6 req requir uires es dir direct ectorsto orsto promo promote te thelongthelong-ter term m succes successs of thecomp thecompanyfor anyfor thegood of the the sha shareh rehold oldersas ersas a whole.Simil whole.Similarl arly, y, sec sectio tion n 182(1) 182 (1) of the Tan Tanzan zanian ian Com Compan panies ies Act 200 2002 2 provid provides es that that ‘a dir direct ector or of a compa company ny whe when n exe exerci rcisin sing g powers powers or per perfor formin ming g dut duties ies must must act hones honestly tly and in good good fait faith h and and in wh what at th the e dire direct ctor or be beli liev eves es to be th the e be best st inte intere rest stss of th the e ow owne ners rs’. ’. 4

 

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Concurrently, Concurrentl y, as an essen essentialcomponentof tialcomponentof corporate corporate govern governance ance system, system, corporate corporate report reporting ing continues continues to be grounded grounded in Dillar lard, d, Rig Rigsby sby,, & Goo Goodma dman, n, 200 2004 4). the log logic ic of cap capita italis lism m facili facilitat tating ing wealth wealth acc accumu umulat lation ion and privat private e propert property y rig rights hts (se (see e Dil Th This is howe howeve verr has has furt furthe herr impl implic icat atio ions ns on th the e co corp rpor orat ate e ab abil ilit ity y fo forr disc disclo losu sure re on ot othe herr si sign gnifi ifica cant nt soci social al is issu sues es in incl clud udin ing g humanrights oblig obligation ations. s. Although Although in recentyears compan companies ies have expanded expanded theirscope of reporting reportingby by producing producing voluntary voluntary so soci cial al resp respon onsi sibi bili lity ty repo report rtss as a way way of resp respon ondi ding ng to th the e incr increa easi sing ng publ public ic pres pressu sure re,, such such a re resp spon onse se co coul uld d be li link nked ed to Gall llho hofe ferr & Ha Hasl slam am,, 19 1997 97,, 20 2003 03;; Un Uner erma man n & O’ O’Dw Dwye yer, r, 20 2007 07). ). Arguab Arguably, ly, often often corpora corporate te the ab abiili lity ty to ma make ke profi profits ts (see (see Ga Banerjee, jee, 2008 2008,, p. 61 61). ). In Inev evit itab ably ly th this is has has le led d to th the e ra rati tion onal alit ity y di dict ctat ates es th the e na natu ture re and and scop scope e of acce accept ptab able le CSR CSR disc disclo losu sure re (Baner busine bus iness ss case case for CSR, CSR, which which is bas based ed on the assump assumptio tion n tha thatt it makes makes good busine business ss sense sense as long long as it enhanc enhances es sha shareh rehold older er va valu lue e (i (ibi bid). d). In prac practi tice ce,, th the e evid eviden ence ce show showss th that at th ther ere e is a huge huge ga gap p be betw twee een n prof profes esse sed d co corp rpor orat ate e co comm mmit itme ment nt to hu huma man n ri righ ghts ts and and co corpo rpora rate te ac acti tion on (for (for exam exampl ple e se see e Amne Amnest sty y In Inte tern rnat atio iona nal, l, 20 2003 03,, 20 2006 06;; Si Sikka kka,, 20 2011 11). ). Corp Corpora orate te commit commitmen mentt to soci social al we welf lfar are, e, such such as hu huma man n ri righ ghts ts,, is ar argua guabl bly y co cons nstr trai aine ned d by th the e exis existi ting ng co corp rpor orat ate e le lega gall fram framew ewor orks ks,, whic which h pr prec eclu lude de co corp rpor orat atio ions ns from from volun volunta tari rily ly em embr brac acin ing g so soci cial al resp respon onsi sibi bili lity ty poli polici cies es th that at mi migh ghtt co confl nflic ictt wi with th shar shareh ehol olde derr in inte tere rest stss (see (see Aras Crow owth ther, er, 20 2008 08;; Lo Lobe bel, l, 20 2006 06). ). As cor corpor porate ate gov govern ernanc ance e legisl legislati ation on focuse focusess on the rig rights hts of the shareh sharehold olders ers,, arg arguab uably ly Aras & Cr ot othe herr st stak akeh ehol olde derr ri righ ghts ts in incl clud udin ing g huma human n ri righ ghts ts ha have ve remai remaine ned d rel releg egat ated ed to th the e area areass of vo volu lunt ntar ary y soci social al poli polici cies es (Horn, 2012). 2012 ). Horn states states tha that: t: ‘Ratherr tha ‘Rathe than n mer merelyinter elyinterven veningin ingin thegovern thegovernanc ance e of corpora corporatio tions,laws ns,laws andregula andregulatio tions ns areactuallyconst areactuallyconstitu itutiv tive e to the modern corporation corporation corpor cor porate ate gove governa rnance nce reg regula ulatio tion n is nota regu regulat latory ory mechan mechanismto ismto coordi coordinat nate e and inc increa rease se the efficiency effici ency of econo economic mic organisati organisation, on, but rathe ratherr a funda fundamenta mentally lly polit political ical expres expression sion of underlying underlying capitalist capitalist princ principles iples’’ (p. (p. 84 84). ). . . .

In th this is co cont ntex ext, t, with within in th the e co cont ntem empo pora rary ry glob global al econ econom omy, y, sh shar areh ehol olde derr weal wealth th maxi maximi misa sati tion on remai remains ns th the e cent centra rall te tene nett of the exi existi sting ng cor corpor porate ate govern governanc ance e system system (Anders Andersson son,, Has Haslam lam,, Lee Lee,, Kat Katech echos, os, & Tsi Tsitsi tsiani anis, s, 201 2010; 0; Ara Arass & Cro Crowth wther, er, 200 2008 8). Inevit Ine vitabl ably y there there is a tensio tension n bet between ween the shareh sharehold older er wea wealth lth max maximi imisat sation ion motive motive and hum human an rig rights hts agenda agendass (se (see e HowardHassmann, 2005 2005). ). In Incr crea easi sing ngly ly,, th ther ere e ar are e ca call llss fo forr rein reinfo forc rcem emen entt of ho host st go gove vern rnme ment nt re regu gula lati tion onss and and de deve velo lopm pmen entt of  in inte tern rnat atio iona nall bi bind ndin ing g le lega gall norm normss th that at ho hold ld co corp rpor orat atio ions ns ac acco coun unta tabl ble e to hu huma man n ri righ ghts ts is issu sues es (see (see Global Global Wit Witnes ness, s, 200 2006; 6; Rugg Ru ggie ie,, 20 2010 10;; Un Unit ited ed Na Nati tion onss Hu Huma man n Ri Righ ghts ts Cou Counc ncil il,, 20 2008 08,, 20 2009 09). ). Such Such call callss are base based d on the vi view ewss th that at th the e stat tate as a ke key y play player er ha hass a si sign gnifi ifica cant nt role role to play play to prom promot ote, e, secur secure e th the e fulfi fulfilm lmen entt of of,, re resp spec ect, t, en ensu sure re re resp spec ectt of of,, an and d prot protec ectt hu huma man n ri righ ghts ts as reco recogn gnis ised ed in in inte tern rnat atio iona nall as we well ll as nati nation onal al laws laws (see (see Bax Baxi, i, 200 2005 5). The The ho host st st stat ate e in th this is cont contex extt has has a role role in crea creati ting ng an and d en enco cour urag agin ing g th the e deve develo lopm pmen entt of a part partic icul ular ar fo form rm of co corp rpora orate te gover governa nanc nce e (t (thr hrou ough gh laws laws an and d re regu gula lati tion ons) s) in or orde derr to prot protec ectt and and en enha hanc nce e hu huma man n ri righ ghts ts.. Ho Howev wever er,, th the e st stat ate e appe appear arss to be syst system emat atic ical ally ly excl exclud uded ed th thro rough ugh vo volu lunt ntar ary y co corpo rpora rate te e, 199 1996 6). As Suzuk Suzuki, i, Gh Ghay ayur, ur, an and d Kh Khan an (20 (2002 02)) arg rgued ued th that at se sett of re regul gulat atio ions ns an and d gover governa nanc nce e govern gov ernanc ance e cod codes es (se (see e Strang Strange, needed nee ded to normal normalise ise corpor corporate ate acc accoun ountab tabili ility ty to soc socialand ialand hum human an rig rightsissuesand htsissuesand for an effi efficie cient nt int interpl erplay ay of mar market ket for forces ces al., ., 20 2002 02,, p. is argua arguabl bly y abse absent nt in th the e co cont ntem empo pora rary ry ca capi pita tali list st econ econom omy y – mo more re so in th the e de devel velop opin ing g co coun untr trie iess (s (see ee Suzuk Suzukii et al 35 359) 9).. Thus Thus,, ra rath ther er th than an me merel rely y inte interve rveni ning ng in th the e gov gover erna nanc nce e of co corp rpor orat atio ions ns,, go gove vern rnme ment nt laws laws an and d re regu gula lati tion onss seem seem to be consti con stitut tutive ive to the con contem tempor porary ary capita capitalis lism. m. Thi Thiss has cre create ated d a governa governance nce gap, gap, whi which ch has bee been n consid considere ered d respon responsib sible le for 2004; 4; Kor Korten ten,, 200 2001 1). furthe fur therr wea weaken kening ing mechan mechanism ismss for promot promoting ing hum human an rights rights esp especi eciall ally y in dev develo elopin ping g countri countries es (Bakan, Bakan, 200 As the the UN Hum Human an Ri Righ ghts ts Cou Counc ncil il Re Repo port rt (20 (2008 08)) has rep repor orte ted, d, th the e ro root ot caus cause e of th the e bu busi sine ness ss an and d hu huma man n ri righ ghts ts pred predic icam amen entt toda today y ca can n be li link nked ed to the the rise rise in co corp rpor orat ate e po powe werr and and the the go gove vern rnan ance ce ga gap p crea create ted d by gl glob obal alis isat atio ion n (p. (p. 3). 3). Acco Accord rdin ing g to th the e report rep ort,, ‘these ‘these gov govern ernanc ance e gap gapss may pr prov ovid ide e a perm permis issi sive ve envi enviro ronm nmen entt fo forr wrong wrongful ful acts acts by co comp mpan anie iess of all all ki kind ndss wi with thou outt adequat ade quate e san sancti ctioni oning, ng, especi especiall ally y in develo developin ping g cou countr ntries ies’’ (p. 3). In fact, fact, TNC TNCss have have become become adept adept at exp exploi loitin ting g thegovernanc thegovernance e (2004)) argues, rgues, cor corpor porati ationsare onsare no lon longer ger tether tethered ed to their their home home jurisdi jurisdicti ction,but on,but produc produce e goods goods and gap.. For exampl gap example, e, Bakan (2004 serv servic ices es at su subs bsta tant ntia iall lly y lo lowe werr co cost stss by bu buyi ying ng ch chea eap p labo labour ur from from po poor or de deve velo lopi ping ng co coun untr trie iess where where so soci cial al,, en envi viro ronm nmen enta tall an and d hu huma man n ri righ ghts ts re regul gulat atio ions ns ar are e weak weak,, and and by sell sellin ing g th thei eirr prod produc ucts ts in we weal alth thy y co coun untr trie iess wher where e peop people le have have di disp spos osab able le Kobrin n (1997) (1997),, TNC pro produc ductio tion n proces processes ses have have become become glo global bal,, in inco come me and and ar are e will willin ing g and and able able to pa pay y fo forr th them em.. Acco Accord rdin ing g to Kobri fluid flui d and inc increa reasin singly gly div divorc orced ed fro from m the regu regulat latory ory con contro troll of any ind indivi ividua duall nat nation ion-st -state ate.. It has has been been ar argu gued ed that that the the soci social al an and d en envi viro ronm nmen enta tall impa impact ct of co corp rpor orat ate e acti activi viti ties es on th the e en enjo joym ymen entt of hu huma man n ri righ ghts ts can be con consid sidera erable ble due to the pressu pressure re exe exerte rted d by cor corpor porati ations ons on sta states tes to lower lower nation national al sta standa ndards rds,, such such as those those rel relati ating ng to labo labour ur la law w an and d en envi viro ronm nmen enta tall law law (Gi Gibn bney ey,, 20 2002 02;; Jä Järge rgers rs,, 20 2002 02;; Ko Kort rten en,, 20 2001 01). ). The UNDP UNDP Hum Human an Deve Develop lopmen mentt Rep Report ort (2000) stat tated ed that that ‘gl ‘globa oball cor corpora poratio tions ns may have have a sign signifi ifica cant nt im impa pact ct on huma human n ri righ ghts ts – in th thei eirr empl employ oyme ment nt pr prac acti tice ces, s, in th thei eirr envi enviro ronm nmen enta tall im impa pact ct,, in th thei eirr supp support ort fo forr co corr rrupt upt re regi gime mess or th thei eirr ad advo voca cacy cy fo forr poli policy cy ch chan ange ges’ s’ (p (p.. 79 79). ). Alth Althou ough gh TNC TNC operat ope ration ionss hav have e thepotentia thepotentiall to bri bring ng rea reall ben benefit efitss andto enhanc enhance e thelivesof peoplearoundthe peoplearoundthe world world by provid providingproduc ingproducts ts andservicesthat andservi cesthat providefor providefor hum human an nee needs,argua ds,arguablythey blythey canas wel welll cau cause se ser seriou iouss harm harm to theworkers, theworkers, com commun muniti ities es andthe Intern ernati ationa onall Ins Instit titute ute of Env Enviro ironme nment nt and Dev Develo elopme pment nt Rep Report ort,, enviro env ironme nment nt par partic ticula ularly rly in deve develop loping ing countr countries ies (see (see the Int 2005 20 05,, p. 1). Many Ma ny de deve velo lopi ping ng co coun untr trie ies, s, such such as Tanz Tanzan ania ia,, ar are e desp desper erat ate e to attr attrac actt fo fore reig ign n in inve vest stme ment nt,, of ofte ten n from from tr tran ansn snat atio iona nall co corp rpor orat atio ions ns,, in orde orderr to stim stimul ulat ate e th thei eirr econ econom omy, y, cr crea eate te em empl ploy oyme ment nt an and d re redu duce ce po pove vert rty y (Hoogvel Hoogvelt, t, 2001 2001). ). Proponents Proponents of  neo-li neo -liber berali alism sm are of theview tha thatt transn transnati ationa onall corpor corporati ations ons,, as dri driver verss of foreig foreign n dir direct ect invest investmen mentt (FDI), (FDI), have have a signifi significan cantt 2003 03). ). In Inde deed ed,, FDI FDI has has ro role le to pl play ay in pr prom omot otin ing g soci social al an and d ec econ onom omic ic deve develo lopm pmen entt in de deve velo lopi ping ng coun countr trie iess (s (see ee OECD OECD,, 20 be been en vi view ewed ed (e.g. by Asi Asiedu edu,, 200 2004 4) as a mec mechan hanism ism for inc increa reasin sing g pro produc ductiv tivity ity,, export exports, s, emp employ loymen ment, t, gove governm rnment ent reve revenue nue and sti stimul mulati ating ng growth growth.. However However,, for foreig eign n inv invest estmen mentt con contra tracts cts may ha have ve se seri riou ouss im impl plic icat atio ions ns fo forr th the e reali realisa sati tion on of basi basicc 2008; 8; Glo Global bal Wit Witnes ness, s, 200 2006 6). As fo fore reig ign n in inve vest stme ment nt is dr driv iven en by th the e sear search ch fo forr profi profit, t, th the e co cont ntra ract ctss human hum an rights rights (se (see e Cotula Cotula,, 200

 

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of tr tran ansn snat atio iona nall co corp rpor orat atio ions ns of ofte ten n adop adoptt ce cert rtai ain n inve invest stme ment nt pro prote tect ctio ion n st stra rate tegi gies es in or orde derr to mi mini nimi mise se th the e ri risk skss of th thei eirr Sikk kka, a, 20 201 11, p. 4). As a co cons nsequ equen ence ce,, devel develop opin ing g co coun untr trie iess go gover vernm nmen ents ts are are st strug ruggl glin ing g to fit in th the e gl glob obal al investment inves tment (see Si ec econ onom omy, y, as FDI DIss are oft often co comi ming ng wi witth at atta tach ched ed co con nditi dition onss. As Mann Mann (1 (199 997) 7) argu rgues es,, ‘s ‘sta tabl ble e go gover vernm nmen ent, t, so soci cial al orde orderr and and ed educ ucat atio ion n and and heal health th sy syst stem emss st stil illl seem seem th the e mi mini nimu mum m of wh what at su subs bsta tant ntia iall fo fore reig ign n in inve vest stme ment nt cont contac actt re requ quir ires es’’ (p. (p. 487). Th Thus us,, be bein ing g ca capt ptur ured ed by co corp rpor orat ate e inte intere rest sts, s, th the e abil abilit ity y of devel develop opin ing g co coun untr trie iess to de deve velo lop p an and d en enfo forc rce e laws laws an and d re regul gulaation tionss th that at prot protec ectt em empl ploy oyees ees,, co comm mmun unit itie iess and and th the e envi enviro ronm nmen ent, t, an and d whic which h pro promo mote te th the e re real alis isat atio ion n of hu huma man n ri righ ghts ts,, may may be se seri riou ousl sly y co cons nstr trai aine ned d (Baka Bakan, n, 20 2004 04;; Ko Kort rten en,, 20 2001 01;; Ra Ratn tner, er, 20 2001 01). ). In esse essenc nce, e, th the e st stri ring ngss atta attach ched ed to th the e fo forei reign gn in inves vesttment me nt co cont ntra ract ctss pose pose seri seriou ouss que quest stio ions ns abou aboutt th the e bo boun unda dary ry be betw twee een n th the e st stat ate e an and d co corp rpor orat atio ions ns,, part partic icul ular arly ly in re resp spec ectt of  er,, 20 2001 01,, p. 45 458 8). In prac practi tice ce th the e gove govern rnme ment ntss of de deve velo lopi ping ng co coun untr trie iess find find the gov govern ernanc ance e of bus busine iness ss ope operat ration ionss (see (see Ratn Ratner it diffi difficu cult lt to stre streng ngth then en dome domest stic ic,, soci social al an and d en envi viro ronm nmen enta tall laws laws,, in incl clud udin ing g th thos ose e rela relati ting ng to hu huma man n ri righ ghts ts,, du due e to fe fear arss of lo losi sing ng fore foreig ign n in inves vestm tmen entt (Fra Franke nkenta ntal, l, 201 2011; 1; Sik Sikka, ka, 201 2011 1). Moreo Moreove ver, r, th the e pres pressu sure re fo forr de deve velo lopi ping ng co coun untr trie iess to co comp mpet ete e for for forei foreign gn in inve vest stme ment nt may may requ requir ire e th the e lowe loweri ring ng of ta taxe xess an and d th the e impo imposi siti tion on of le less ss ri rigo goro rous us laws laws and and re regu gula lati tion ons; s; and and ationa onall Ins Instit titute ute of Env Enviro ironme nment nt and such suc h str strate ategie giess may co cons nstr trai ain n th the e real realis isat atio ion n and and enjo enjoym ymen entt of huma human n ri righ ghts ts (Intern Internati Develop Deve lopmen mentt Rep Report ort,, 200 2005 5). For For inst instan ance ce,, st stab abil ilis isat atio ion n clau clause ses, s, wh whic ich h are are us used ed by co corp rpor orat ate e en enti titi ties es to mana manage ge po poli liti tica call and com commer mercia ciall risk, risk, can constr constrain ain a gov govern ernmen ment’s t’s abi abilit lity y to implem implement ent regu regulat latory ory cha change ngess to protec protectt and pro promot mote e human human Platform, form, 2010 2010). ). Thus, Thus, as Pla Platfo tform rm (ib (ibid) id) poi points nts out, out, sta stabil bilisa isatio tion n clause clausess have have the eff effect ect of imm immuni unisin sing g invest investors ors rights rights (see (see Plat agai agains nstt fu futu ture re ch chan anges ges in bo both th fisca fiscall term termss an and d legi legisl slat atio ion: n: ‘St ‘Stabi abilis lisati ation on cla clause usess reduce reduce leg legisl islati ative ve sov sovere ereign ignty ty – rem removi oving ng the abilit ability y of the countr country y to improveits improveits enviro environme nmenta ntall regulat regul atio ions ns,, la laws ws gov gover erni ning ng worke workers rs’’ righ rights ts or heal health th st stan anda dard rds. s. They They allo allow w co comp mpan anie iess to profit profit from from un unde devel velop oped ed regulation regula tion and legis legislati lation on [S]tabilis [S]ta bilisation ation claus clauses es are thus detrimenta detrimentall to the protection protection of democracy, democracy, enviro environment nment,, hu huma man n ri righ ghts ts and and wo worke rkers rs’’ ri righ ghts ts,, an and d ar are e an obst obstac acle le to deve develo lopm pmen ent’ t’ (p (p.. 28 28). ). . . .

In su sum, m, in inte terv rven enti tion onss to pr prot otec ectt an and d pr prom omot ote e basi basicc huma human n righ rights ts te tend nd to be cons constr trai aine ned d by th the e cond condit itio ions ns atta attach ched ed in the inv invest estmen mentt agreem agreement entss in develop developing ing countr countries ies.. The follow following ing sectio section n consid considers ers the social social and econom economic ic enviro environme nment nt of Ta Tanz nzan ania ia and and it itss impa impact ct on huma human n righ rights ts in or orde derr to dr draw aw at atte tent ntio ion n to th the e bu busi sine ness ss-r -rel elat ated ed hu huma man n ri righ ghts ts di dile lemm mmas as in the cou countr ntry. y.

3. Soc Social ial-ec -econo onomi mic c dev develo elopme pment nt and hum human an rights rights in Tanzan Tanzania ia

Theprevious Theprevio us sectio section n hig highli hlight ghted ed howthe protec protectio tion n andpromotio andpromotion n of hum human an rig rightshavebecom htshavebecome e caughtup caughtup in theprocess theprocess of inc increa reasin sing g glo global balisa isatio tion n and imp implic licate ated d in the existi existing ng cor corpor porate ate gove governa rnance nce str struct ucture ures. s. The sec sectio tion n drew drew att attent ention ion to the di dile lemm mmas as face faced d by go gover vernm nmen ents ts,, espe especi cial ally ly th thos ose e of deve develo lopi ping ng co coun untr trie ies, s, in en ende deav avou ouri ring ng to pr prot otec ectt an and d pr prom omot ote e basi basicc hu huma man n ri righ ghts ts whil while e at th the e same same time time at atte temp mpti ting ng to at attr trac actt fo forei reign gn in inves vestm tmen ent. t. This This sect sectio ion n cons consid ider erss th the e so soci cio-e o-eco cono nomi micc positi pos ition on with with regard regard to Tanzan Tanzania ia in ord order er to provid provide e the backgr backgroun ound d for a dis discus cussio sion n of busine businessss-rel relate ated d human human rig rights hts issues issues.. 2010 10). ). It ha hass co cont ntin inue ued d to ex expe peri rien ence ce cons consid ider erab able le soci sociooTan Tanzania is one of the poorest count untries in Af Afrrica (UNDP UNDP,, 20 econ econom omic ic ch chal alle leng nges es ov over er th the e pa past st deca decade dess and and th thes ese e ha have ve acte acted d as a th thrus rustt fo forr ma majo jorr poli policy cy an and d in inst stit itut utio iona nall ch chan ange ges. s. To addres add resss the pressin pressing g sociosocio-eco econom nomic ic nee needs, ds, which which sev severel erely y underm undermine ine basic basic hum human an rig rights hts,, the Tan Tanzan zanian ian governm government ent,, like like gover governm nmen ents ts in ma many ny othe otherr deve develo lopi ping ng co coun untr trie ies, s, ha hass ha had d to tu turn rn to TNCs TNCs an and d gl glob obal al ag agen enci cies es (s (such uch as th the e Wo Worl rld d Bank Bank an and d the the In Inte tern rnat atio iona nall Mone Moneta tary ry Fund) Fund) and and to ente enterr into into bila bilate tera rall an and d mult multil ilat ater eral al tr trea eati ties es an and d ot othe herr in inves vestm tmen entt ag agre reem emen ents ts.. Variou Var iouss measur measures es and strate strategie giess hav have e bee been n imp implem lement ented ed to sec secure ure for foreig eign n invest investmen ment, t, suc such h as privat privatisa isatio tion, n, deregu deregulat lation ion,, fiscal incen incentives tives,, inves investment tment concessions concessions,, low taxes taxes,, subsidies, subsidies, stabi stabilisat lisation ion clauses clauses and inves investment tment guarantees guarantees (see Mkenda, 2005). 2005 ). This This hasinevi hasinevitab tably ly increa increasedTNC sedTNC ope operat ration ionss in Tan Tanzan zania, ia, and, and, as a res result ult,, theinflow of FDI rose rose from from US$ US$172 172 millio million n in 1998 1998 to US US$7 $744 44 mi mill llio ion n in 20 2008 08 (World World Ban Bank, k, 201 2010 0). Sin Since ce the 1990s, 1990s, TNC ope operat ration ionss have have become become pre predom domina inant nt in Tanzan Tanzania ia in respe respect ct of th the e extr extrac acti tion on of mine minera rals ls (wh (whic ich h has has be been en re resp spon onsi sibl ble e fo forr th the e re rece ceip iptt of tw two-t o-thi hird rdss of to tota tall FD FDI), I), part partic icul ular arly ly D, 20 2007 07,, p. 36 36). ). gold gold,, wh whic ich h acco accoun unts ts for for more more th than an 90 90% % of mine minera rall expo export rtss (UNCTA UNCTAD, It hasbeen arguedthat arguedthat var variou iouss mea measur sures es andstra andstrateg tegies(suchas ies(suchas inc incent entive ivess andstabili andstabilisat sationclaus ionclauses)adopt es)adopted ed to att attrac ractt FDI and and TNC TNC oper operat atio ions ns in Tanz Tanzan ania ia have have ha had d adver adverse se im impl plic icat atio ions ns fo forr th the e hu huma man n ri righ ghts ts of many many Ta Tanz nzan ania ian n citi citize zens ns (Chachage, 1995; 199 5; Chr Christ istian ian Aid Aid,, 200 2008 8). In fact fact,, va vari riou ouss fisca fiscall ince incent ntiv ives es have have cr crea eate ted d op oppo port rtun unit itie iess fo forr tax tax av avoi oida danc nce e an and d tax tax plan planni ning ng,, whic wh ich h ha have ve er erod oded ed th the e taxtax-ba base se and and th ther ereb eby y red reduce uced d th the e go gove vern rnme ment nt reven revenue uess de desp sper erat atel ely y ne need eded ed fo forr pro provi vidi ding ng soci social al se serv rvic ices es and and othe otherr in infr fras astr truc uctu ture re to impr improve ove th the e st stan anda dard rd of livi living ng of Ta Tanz nzan ania ian n citi citize zens ns.. It ha hass be been en re repo port rted ed th that at re reven venues ues ha have ve be been en lost lost th thro rough ugh a co comb mbin inat atio ion n of ta tax x exem exempt ptio ions ns,, tr trad ade e misp mispri rici cing ng,, st stab abil ilis isat atio ion n clau clause sess an and d ot othe herr st stra rate tegi gies es th that at 2009). ). For example, example, exempt exemptions ions have hav e all allowe owed d com compan paniesto iesto avo avoid id or evade evade pay payingcorpor ingcorporati ation on taxin Tanzan Tanzania ia (Policy Policy Forum, 2009 give gi ven n to co corp rpor orat atio ions ns ha have ve depr depriv ived ed Tanz Tanzan ania ia of an aver averag age e of US$ US$28 288 8 mi mill llio ion n (T (Tsh shss 45 458. 8.6 6 bi bill llio ion) n) a year year in th the e th thre ree e year yearss 2008/09–20 2008/ 09–2010/11 10/11 (Curti Curtis, s, NG NGow owi, i, & Wa Warri rris, s, 20 2012 12). ). Acc Accord ording ing to Curtis Curtis and Lis Lissu su (20 (2008) 08),, Ta Tanz nzan ania ia ha hass lost lost at le leas astt US US$2 $265 65.5 .5 mi mill llio ion n in recen recentt ye year arss due due to an exce excess ssiv ivel ely y lo low w ro roya yalt lty y ra rate te and and go gove vern rnme ment nt co conc nces essi sion onss in th the e mi mini ning ng sect sector or.. In esse essenc nce, e, theli corpor cor porate ate taxelost los could cou ld hav have e bee been n use used d to improv improve e the basic basic human human rig rights hts of Tanzan Tanzanian ian citize citizens, ns, most most of whom whom contin continue ue to live ve in extr ex trem eme pove potvert rty. y. As a cons conseq eque uenc nce, e, in inad adeq equa uate te so soci cial al infr infras astr truc uctu ture res, s, po poor or qual qualit ity y of li life fe of loca locall citi citize zens ns and and wi wide desp spre read ad po pove vert rty y in Tanzan Tan zania ia remain remainss signifi significan cant. t. Acc Accord ording ingly, ly, Tan Tanzan zania ia is ext extrem remely ely poo poor, r, wit with h its 45 millio million n people people liv living ing on averag average e income incomess

 

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With a huma human n devel develop opme ment nt inde index x (HDI) (HDI),, of 0. 0.39 398, 8, Tanz Tanzan ania ia wa wass rank ranked ed 14 148 8 in th the e li list st of 16 169 9 poore poorest st of ju just st US$ US$53 530 0 a year year..6 With 2010 0). It has has been been repo report rted ed th that at at le leas astt 14 140 0 of th the e appr approx oxim imat atel ely y 44 4400 00 ba babi bies es bo born rn coun countr trie iess in the the worl world d in 2010 2010 (UNDP, UNDP, 201 The e Ci Citi tize zen, n, 20 2009 09b b). Furt Furthe herm rmor ore, e, in 2010 2010,, more more th than an 22 mi mill llio ion n Tanz Tanzan ania ians ns (5 (54% 4%)) di did d no nott have have da dail ily y in the coun counttry die die (Th ac acce cess ss to safe safe dr drin inki king ng wa wate ter; r; and, and, in 20 2006 06,, only only 31 31% % of th the e urban urban po popu pula lati tion on had had pr prop oper er sani sanita tati tion on faci facili liti ties es (UND UNDP, P, 201 2010 0). As th the e sh shar are e of na nati tion onal al expe expend ndit iture ure allo alloca cate ted d to publ public ic se servi rvice cess has has re rema main ined ed lo low, w, th the e provi provisi sion on of he heal alth thca care re,, ed educa ucati tion on an and d ot othe herr in infr fras astr truc uctu ture re ha hass be been en po poor or.. Fo Forr exam exampl ple, e, in 20 2007 07,, 47 47.3 .3% % of GDP was was allo alloca cate ted d to pub publi licc se servi rvice ces, s, bu butt ed educa ucati tion on Republ ublic ic of Tan Tanzan zania, ia, 200 2007 7). It ha hass also also be been en argu argued ed th that at an and d he heal alth th recei received ved only only 1. 1.8% 8% and and 1.4% 1.4% of GDP re resp spec ecti tive vely ly (United United Rep priv privat atis isat atio ion n of th the e he heal alth th sect sector or and and th the e intr introd oduc ucti tion on of ‘us ‘user er fees fees’’ in th the e 19 1990 90ss was was re resp spon onsi sibl ble e fo forr re reduc ducin ing g acce access ss to th the e Bank, k, 200 2006 6). In fact, fact, hea health lthcar care e servic services es in he heal alth th serv servic ice e for for mo most st of the the po poor or livi living ng in th the e rura rurall regi region onss of Tanz Tanzan ania ia (World World Ban Tanz Tanzan ania ia ha have ve be beco come me more more inac inacce cess ssib ible le,, lead leadin ing g to a high high mo mort rtal alit ity y rate rate of 11 116 6 in 10 100, 0,00 000 0 fo forr ev ever ery y ch chil ild d of th the e po popu pula lati tion on aged ged unde underr 5 in20 in2007( 07(UND UNDP, P, 200 2007 7), and and a ma mate tern rnal al mo mort rtal alit ity y ra rate te of 95 950 0 de deat aths hs fo forr eve every ry 10 100, 0,00 000 0 li live ve bi birt rths hs in 20 2005 05 (WHO, 2005).7 2005). In addi additi tion on to lo lost st tax tax re reve venu nues es,, wh whic ich h co coul uld d have have be been en used used to prom promot ote e an and d prote protect ct hu huma man n ri righ ghts ts in Ta Tanz nzan ania ia,, fo fore reig ign n co corp rpor orat atio ions ns in inve vest stin ing g in the the co coun untr try y have have also also be been en accus accused ed of perp perpet etua uati ting ng vi viol olat atio ions ns of basi basicc hu huma man n ri righ ghts ts (see (see Cu Curt rtis is & Lissu, Lis su, 200 2008; 8; The Cit Citize izen, n, 200 2009c; 9c; Thi Thiss Day Day,, 200 2009b 9b). ). Spe Specifi cifical cally, ly, transn transnati ationa onall com compan panies ies have have been been blamed blamed for causin causing g pol polluluti tion on and and envi enviro ronm nmen enta tall degra degrada dati tion on in Tanz Tanzan ania ia,, wh whic ich h have have th thre reat aten ened ed th the e ri righ ghts ts of many many citi citizen zenss to a safe safe en envi viro ronm nmen entt Alma mas, s, Kw Kwey eyun unga ga,, & Ma Mano noko ko,, 20 2009 09;; Bi Bita tala la,, 20 2008 08;; Ki Kitu tula la,, 20 2006 06). ). Fo Forr exa examp mple le,, mi mini ning ng co comp mpan anie iess ha have ve be been en accu accuse sed d of lax lax (Al health hea lth,, saf safety ety and env enviro ironme nmenta ntall protec protectio tion n sta standa ndards rds,, which which hav have e pos posed ed seriou seriouss threat threatss to the liv lives es of innoce innocent nt peo people ple (se (see e Th The e Ci Citi tizen zen,, 20 2009 09a, a, 20 2009 09c; c; Th This is Da Day, y, 20 2009 09b b). More Mo reov over, er, in incr crea easi sing ng ev evid iden ence ce of abus abuse e of wo work rkers ers’’ ri righ ghts ts invo involv lvin ing g fo forei reign gn comp compan anie iess in Tanz Tanzan ania ia ha hass attr attrac acte ted d co connside sidera rabl ble e cr crit itic icis ism m from from NGOs NGOs,, tr trad ade e unio unions ns and and the the me medi dia a (Tanz Tanzan ania ia Da Dail ily y Ne News ws,, 20 2011 11;; Th The e Ci Citi tize zen, n, 20 2010 10;; UR URT, T, 20 2008 08). ). Alth Althou ough gh in inte tern rnat atio iona nall hu huma man n righ rights ts tr trea eati ties es (suc (such h as th the e ILO, ILO, whic which h ha hass be been en rati ratifie fied d by Tanz Tanzan ania ia)) proh prohib ibit it di disc scri rimi mina na-tion tion an and d in ineq equa uali lity ty in th the e work workpl plac ace, e, th the e real realit ity y in pr prac acti tice ce has has left left mu much ch to be de desi sire red d in Tanz Tanzan ania ia.. For For ex exam ampl ple, e, mi mini ning ng compan com panies ies hav have e bee been n accuse accused d of infrin infringin ging g wor workers kers’’ rights rights to freedo freedom m of associ associati ation on and spe speech ech and to non-di non-discr scrimi iminat nation ion Lauwo uwo,, 20 2011 11;; Th The e Gua Guardi rdian an,, 20 2011 11). ). Lau Lauwo wo (20 (2011) 11) has has st stat ated ed th that at,, ‘alt ‘altho houg ugh h empl employ oyee eess are are on one e of th the e and eq equa uall pay pay (see (see La most mo st va valu luab able le asse assets ts for for co comp mpan anie ies, s, inco income me inequ inequal alit ity, y, em empl ploy oyee ee di disc scri rimi mina nati tion on an and d evide evidenc nce e of ab abus use e of worke workers rs’’ ri righ ghts ts to free freedo dom m of exp expre ress ssio ion n ha have ve remai remaine ned d perva pervasi sive ve in th the e Tanz Tanzan ania ian n mi mini ning ng sect sector or’’ (p. 20 208) 8).. Fu Furt rthe herm rmor ore, e, many many loca locall peop people le have have be been en aggri aggrieve eved d by th the e fact fact th that at th the e fo fore reig ign n co comp mpan anie iess ha have ve taken taken over over th thei eirr land landss an and d fo forc rced ed th them em to le leav ave e thei theirr ho home mes, s, of ofte ten n with with litt little le or no comp compen ensa sati tion on be bein ing g paid paid.. Fo Forr ex exam ampl ple, e, in th the e mi mini ning ng sect sector or,, Wanzala rgues,, ‘t ‘the he ma majo jori rity ty of th thos ose e disp displa lace ced d an and d who who have have no nott be been en ab able le to regai regain n mean meanin ingf gful ul li live veli liho hood odss are are Wanzala (2007) argues bi bitt tter er and and vi view ew th the e di disc scov overyof eryof go gold ld and and th the e co comi ming ng of large large-s -sca cale le in inve vest stor orss as a cu curs rse e rath rather er th than an a bl bles essi sing ng’. ’. The The bi bitt tter erne ness ss and ang anger er of those those displa displaced ced is refl reflect ected ed in the ongoin ongoing g con conflic flicts ts bet between ween loc local al com commun muniti ities es and the mining mining compan companies ies (se (see e Citize izen, n, 200 2009a 9a). ). The Cit The The ab abov ove e ev evid iden ence ce pr prov ovid ides es a glim glimps pse e of the the chal challe leng nges es face faced d by Ta Tanz nzan ania ian n citi citize zens ns with with re rega gard rd to en enjo joyi ying ng hu huma man n rights rights in the countr country, y, partic particula ularly rly in the contex contextt of the mining mining sec sector tor.. The fol follow lowing ing sectio section n also also exa examin mines es the mining mining sector sector,, a sect sector or domi domina nate ted d by TNC TNC inve invest stme ment nt.. It co cons nsid ider ers, s, in pa part rtic icul ular ar,, th the e te term rmss ag agre reed ed in mi mine nera rall de deve velo lopm pmen entt ag agre reem emen ents ts (M (MDAs DAs), ), su such ch as stab stabil ilis isat atio ion n clau clause ses, s, wh whic ich h not not only only add add to th the e co comp mple lexi xiti ties es of th the e go gove vern rnan ance ce sy syst stem em,, bu butt whic which h also also have have th the e effe effect ct of re rest stri rict ctin ing g and and re rest stra rain inin ing g th the e enjo enjoym ymen entt of huma human n ri righ ghts ts in Tanz Tanzan ania ia..

4. Th The e Ta Tanz nzan ania ian n mi mini ning ng sect sector or

Tanzania Tanzan ia is endowe endowed d wit with h abunda abundant nt valuab valuable le min minera erall res resourc ources, es,8 whic hich h have have the potent potential ial to provide provide for sociosocio-eco econom nomic ic develo dev elopme pment,impro nt,improve ve thestand thestandardof ardof livingand livingand red reducepovert ucepoverty y inthe countr country. y. Follow Followingthe ingthe lib libera eralis lisati ationof onof theeconomy theeconomy in the1990s,, a num the1990s number ber of mul multil tilate ateraland raland bil bilate ateralagreem ralagreement entss wereenter wereentered ed int into o in themining themining sector(Socie sector(Society ty for Int Intern ernati ationa onall De Devel velop opme ment nt (S (SID) ID),, 20 2009 09). ). This This led led to an incr increa ease se in th the e influ influx x of fo fore reig ign n in inves vesto tors rs,, part partic icul ular arly ly tr tran ansn snat atio iona nall co corp rpor orat atio ions ns Gold d Coun Council cil,, 200 2009 9). Th The e Af Afri rica ca St Stra rate tegy gy fo forr Mini Mining ng Tech Techni nica call Pape Paper, r, wh whic ich h wa wass de devel velop oped ed by th the e WB an and d th the e IMF IMF in (World World Gol World 1992, 199 2, playeda playeda signifi significan cantt rol role e in transf transform ormingthe ingthe min miningsecto ingsectorr andin facili facilitat tatingthe ingthe expans expansionof ionof capita capitall in Tanzan Tanzania( ia(World Bank, Ban k, 199 1992 2).9 The WB est establ ablish ished ed a five five-ye -year ar Minera Minerall Sec Sector tor Techni Technical cal Ass Assist istanc ance e Projec Projectt in Tanzan Tanzania ia amount amounting ing to US$14.5 US$14.5 mill millio ion n in orde orderr to cr crea eate te an at attr trac acti tive ve inves investm tmen entt envi enviro ronm nmen entt fo forr fo fore reig ign n in inve vest stor ors. s. Th The e proj projec ectt in incl clud uded ed assi assist stan ance ce in

6

World World Bank Bank count country ry page page for Tan Tanzan zania, ia, www.worldbank.org . In compa comparis rison, on, the USA had 11 matern maternal al death deathss for every every 100 100,00 ,000 0 live live births births in 200 2005. 5. 8 Thes These e incl include ude gold, gold, coa coal, l, copper, copper, silver, silver, tin,mica, gypsu gypsum, m, sand sand,, lime lime,, nick nickel el and gemstone gemstoness suchas diamonds diamonds,, tanz tanzanit anite, e, rubies, rubies, sapphiresand sapphiresand emeralds emeralds 2009 9). (MEM, MEM, 200 9 The Wor World ld Bank’ Bank’ss Africa African n Min Mining ing Strate Strategy gy docume document nt recom recommen mended ded that that Tan Tanzan zania’ ia’ss mi minin ning g compa companie niess should should be pri privat vatise ised, d, and that that the Tanza Tanzania nian n World ld Ban Bank, k, 199 1992, 2, pp. 52– 52–56 56). ). In addition addition,, it also reco recomme mmended nded govern governmen mentt sho should uld no longer longer be involv involved ed in minera minerall ext extrac racti tion on andmarke andmarketin ting g functi functions( ons(Wor the ena enactm ctment ent of new mining mining codes codes in order order to remove remove bureau bureaucr cracy acy and to pro provid vide e invest investmen mentt inc incent entive ives, s, protec protectio tions ns and gua guaran rantee teess and stabil stabilisa isati tion on clauses (ibid) (ibid).. Theviewof theWorld theWorld Ban Bank k wasthatmining wasthatmining in Africa Africa,, andin Tan Tanza zaniain niain partic particula ular, r, suffer suffered ed from from ine ineffic fficien iency,stag cy,stagnat nationand ionand loss loss of ma marke rkets ts caused caus ed by low levels levels of private private investmen investment, t, stat state e owne ownershi rship, p, restr restricti ictions ons and controlson controlson mini mining, ng, cumb cumberso ersome me regulator regulatory y proc procedure edures, s, unattrac unattractive tive taxation taxation arrangem arra ngements ents and unst unstable able macr macro-ec o-econo onomic mic policies policies.. 7

 

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enacting new national enacting national legis legislatio lation n (e.g. the Invest Investmen mentt Act 1997 1997 and the Mining Mining Act 1998) 1998) to harmon harmonise ise Tanzan Tanzania’ ia’ss leg legisl islati ation on Butl tler er,, 20 2004 04,, p. 68 68). ). The WB emp emphas hasise ised d that: that: wi with th th the e re requ quir irem emen ents ts of th the e new new glob global al poli politi tica call econ econom omy y (Bu ‘ th ther ere e wa wass a la lack ck of an at attr trac acti tive ve enab enabli ling ng envi enviro ronm nmen entt in de devel velop opin ing g co coun untr trie iess (a (and nd Ta Tanz nzan ania ia in part partic icul ular ar)) fo forr pri privat vate e sector sector min mining ing invest investmen ment, t, a paucit paucity y of acc accura urate te up-to-d up-to-date ate geolog geologica icall inf inform ormati ation on and the system system to manage manage the inf inform ormati ation, on, ina inadeq dequat uate e or non non-exi -existe stent nt enviro environme nment nt regu regulat lation ion and sta standa ndards rds,, and ins insuffi ufficie cient nt hum human an ski skills lls and capaci cap acity ty to eff effect ective ively ly adm admini iniste sterr the sec sector tor’. ’.10 . . .

As a resu result lt of th the e refo reform rms, s, th the e Tanz Tanzan ania ian n mi mini ning ng se sect ctor or has has at attr trac acte ted d a si sign gnifi ifica cant nt pr prop opor orti tion on of FDI FDI in th the e last last de deca cade de or so. For exam exampl ple, e, in the pe peri riod od 1998 1998-2 -200 009 9, the min mining ing se sect ctor or att ttra ract cted ed over over US US$2 $2.5 .5 bi bill llio ion n (t (two wo-t -th hir irds ds of total otal FD FDII in SID, D, 20 2009 09). ). Ye Yet, t, mi mini ning ng acti activi viti ties es in Ta Tanz nzan ania ia cont contin inue ue to be do domi mina nate ted d by th the e gi gian antt th thre ree e gl glob obal al comp compan anie iess Ta Tanz nzan ania ia)) (SI (Bar (Barri rick ck Go Gold ld,, An Angl gloG oGol old d and and Reso Resolu lute te Mi Mini ning ng Lt Ltd. d.). ). Cr Crit itic icss have have ar argu gued ed,, ho howe weve ver, r, th that at,, de desp spit ite e th the e li libe bera rali lisa sati tion on of th the e econ econom omy y and and th the e in incr crea easi sing ng ro role le of tr tran ansn snat atio iona nall co corp rpor orat atio ions ns in th the e mi mini ning ng sect sector or,, th the e so soci cioo-ec econ onom omic ic co cont ntri ribu buti tion on of  Christ istian ian Aid Rep Report ort,, mi mini ning ng for for th the e deve develo lopm pmen entt of Tanz Tanzan ania ia an and d fo forr th the e pr prom omot otio ion n of hu huma man n ri righ ghts ts is yet yet to be re real alis ised ed (Chr 2008 20 08,, 20 2009 09;; Cur Curti tiss & Li Liss ssu, u, 20 2008 08). ). For For exam exampl ple, e, as mini mining ng is high highly ly capi capita tall-in inte tens nsiv ive, e, th the e co cont ntri ribu buti tion on of th the e mi mini ning ng in indu duss11 tr try y to em empl ploy oyme ment nt in Tanz Tanzan ania ia has has rema remain ined ed rela relati tive vely ly low. low. Thu hus, s, on onlly 29 29,0 ,000 00 pe peop ople le were were empl employ oyed ed in the se sect ctor or in 200 2007, acco accoun unttin ing g for for onl only 0.2% 0.2% of the wo work rkiing po popu pullat atiion (UNCTA UNCTAD, D, 20 2007 07). ). It has also lso been een arg rgue ued d th that at the the Tanz Tanzan aniian go gove vern rnme ment nt has has not not been been ab able le to real realis ise e th the e subs substa tant ntia iall re reve venu nues es from from mi mini ning ng acti activi viti ties es,, whic which h coul could d be us used ed to in inve vest st in Chri rist stia ian n Ai Aid, d, 20 2008 08;; Cur Curti tiss & Li Liss ssu, u, educ educat atio ion, n, he heal alth thca care, re, in infr fras astr truc uctu ture res, s, and and also also to ad addr dres esss th the e ende endemi micc pover poverty ty le leve vels ls (Ch 2008). 2008 ). Fo Forr in insstanc tance, e, ou outt of th the e US US$2 $2.8 .8 bil billion lion gen generat erated ed from from mine minera rall ex expo port rtss fr from om 19 1999 99 to 20 200 05, only only US US$2 $252 52 mil illlio ion n (9% (9% of expo export rt re reve venu nues es)) wa wass ra rais ised ed by th the e gove govern rnm men entt in the fo form rm of tax tax paym paymen ents ts an and d ro roya yalt ltiies (UNCTA UNCTAD, D, 20 2007 07). ). The cont contri ribu buti tion on of mi mini ning ng to GDP ha hass th ther eref efor ore e re rema main ined ed re rela lati tive vely ly lo low, w, de desp spit ite e th the e 10 10% % targ target et laid laid do down wn in Tanz Tanzan ania ia’s ’s Mi Minneral eral Po Poli licy cy of 19 1997 97 an and d it itss Deve Develo lopm pmen entt Vi Visi sion on 20 2025 25,, ac acco coun unti ting ng (i (in n 20 2006 06)) fo forr on only ly 3. 3.8% 8% of GDP GDP and and 3. 3.6% 6% of tax tax re reve venu nues es Inte tern rnat atio iona nall Co Coun unci cill on Mi Mine nera rall an and d Met Metal al (I (ICMM CMM), ), 20 2009 09). ). Al Alth thou ough gh mi mini ning ng acti activi viti ties es ha have ve th the e pote potent ntia iall to st stim imul ulat ate e th the e (In Ta Tanz nzan ania ian n econ econom omy y and and he help lp eradi eradica cate te th the e pover poverty ty,, th they ey neve nevert rthe hele less ss have have th the e pote potent ntia iall to caus cause e so soci cial al di disl sloc ocat atio ion n an and d un unre rest st in loca locall co comm mmun unit itie ies, s, as well well as poll pollut utio ion n and and envi enviro ronm nmen enta tall de degr grad adat atio ion. n. Korten Korten (20 (2001) 01) arg rgue uess tha hatt po poor or comommuni mu niti ties es in deve develo lopi ping ng co coun untr trie iess ar are e be beco comi ming ng th the e favo favoure ured d ar area ea fo forr wa wast ste e du dump mpss an and d poll pollut utin ing g ch chim imne neys ys.. Acco Accord rdin ing g to Korten: ‘T ‘The he we weal alth thy y go gove vern rnme ment ntss have have econ econom omic ic po powe werr an and d po poli liti tica call powe powerr to ma make ke su sure re th that at poll pollut utan ants ts and and wast wastes es are are dump dumped ed some somewh wher ere e ot othe herr th than an in th thei eirr lo loca cali lity ty and and ensu ensure re th that at th thei eirr ne neig ighb hbou ourh rhoo oods ds re rema main in plea pleasa sant nt,, poll pollut utin ing g fa fact ctor orie iess an and d wa wast ste e disp dispos osal al si site tess ar are e co cons nsis iste tent ntly ly lo loca cate ted d in po poor or an and d mi mino nori rity ty co comm mmun unit itie ies’ s’ (p. 39 39). ). Transna Trans nati tion onal al co comp mpan anie iess have have also also be been en alle allege ged d to be unde underm rmin inin ing g fu fund ndam amen enta tall hu huma man n ri righ ghts ts is issu sues es th thro rough ugh te term rmss stia ian n Ai Aid, d, 20 2008 08,, 20 2009 09;; Cu Curt rtis is & Li Liss ssu, u, 20 2008 08;; La Lang nge, e, 20 2006 06). ). It ha hass agre agreed ed in mi mine nera rall devel develop opme ment nt agre agreem emen ents ts (MD (MDAs As)) (Chri Christ been bee n arg argued ued tha thatt the invest investmen mentt terms terms andcondi andconditio tions ns given given to foreig foreign n mining mining compan companies ies in the 1990s, 1990s, in order order to encour encourage age ge, 199 1995; 5; Chr Christ istian ian Aid Aid,, 200 2008, 8, 200 2009 9). Fo Forr exam exampl ple, e, MDA MDAss ma made de un unde derr them them to in inves vestt in Ta Tanz nzan ania ia,, were were to too o ge gene nero rous us (Chacha Chachage, sectio sec tion n 10 of the Mining Mining Act 1998 1998 offere offered d fisc fiscal al sta stabil bilisa isatio tion n reg regime imess and tax conces concessio sions. ns. These These MDAs allowe allowed d 100% 100% for foreig eign n owners own ership hip,, and provid provided ed guaran guarantee teess aga agains instt nat nation ionali alisat sation ion and exprop expropria riatio tion. n. They They also also off offered ered unrest unrestric ricted ted repatr repatriat iation ion of profi profits ts an and d ca capi pita tal. l. St Stab abil ilis isat atio ion n clau clause sess in MD MDAs As req requi uire red d th the e Tanz Tanzan ania ian n go gover vernm nmen entt to guara guarant ntee ee th the e fisca fiscall st stab abil ilit ity y of  lo long ng-t -term erm mi mini ning ng pr proj ojec ects ts and and to pr prev even entt th the e go gove vern rnme ment nt from from co cond nduc ucti ting ng fu futu ture re re revi view ewss of th the e te term rmss agree agreed d upon upon (SID, 2009). 2009 ). The sta stabil bilisa isatio tion n cla clause usess also also ser served ved to ensure ensure tha thatt the wishes wishes of the mining mining compan companies ies embodi embodied ed in MDAs MDAs con contin tinued ued to preva evail (UNCTA UNCTAD, D, 20 2007 07). ). In part partic icul ular ar,, ‘free ‘freezi zing ng clau clause ses’ s’ we were re pe perm rmit itte ted, d, whic which h re requi quire red d th the e Tanz Tanzan ania ian n go gover vernm nmen entt to en ensu sure re th that at th the e le lega gall-fis fisca call regi regime me ex exis isti ting ng at th the e ti time me of sign signin ing g th the e cont contra ract ct wo woul uld d re rema main in un unch chan ange ged d in th the e fu futu ture re 2009 09). ). Th The e go gove vern rnme ment nt also also perm permit itte ted d th the e us use e of ‘eco ‘econo nomi micc equ equil ilib ibri rium um clau clause ses’ s’,, wh whic ich h re requ quir ired ed th the e gover governm nmen entt to (SID, SID, 20 compen com pensat sate e theinvestorshoul theinvestorshould d thegovern thegovernmen mentt ena enact ct anylegislat anylegislationthat ionthat increa increasedthe sedthe costs costs of theprojec theprojectt (SID,2009). SID,2009). Thus, the the clau clause sess prev preven ente ted d ne new w le lega gall and and fisca fiscall reg regim imes es appl applyi ying ng to a mini mining ng pr proj ojec ect, t, an and d also also fo forc rced ed th the e Tanz Tanzan ania ian n go gover vernm nmen entt to co comp mpen ensa sate te mi mini ning ng co comp mpan anie iess shou should ld th they ey be adve advers rsel ely y af affe fect cted ed by an any y ch chan anges ges to th the e law, law, fo forr in inst stan ance ce when when an any y le lega gall Cotula ula,, 200 2008 8). chan change ge erode eroded d th the e re retu turn rnss prom promis ised ed to inve invest stor orss (see (see Cot The The te term rmss ag agre reed ed in the the mi mini ning ng inve invest stme ment nt cont contra ract ctss have have been been crit critic icis ised ed fo forr wi wide deni ning ng th the e go gove vern rnan ance ce gap gap and and fo forr underm und ermini ining ng the state’ state’ss role role in pro protec tectin ting g and pro promot moting ing hum human an rights rights in the mining mining sector sector (Cha Chacha chage, ge, 199 1995; 5; Curt Curtis is & Lis Lissu, su, 2008 20 08;; Ha Harr rris ison on,, 19 1999 99). ). Alth Althou ough gh MD MDAs As te tend nd to be confi confide dent ntia ial, l, in re rece cent nt year yearss some some have have attr attrac acte ted d th the e atte attent ntio ion n of th the e medi me dia, a, ac acad adem emic icss an and d NGOs NGOs in Ta Tanz nzan ania ia.. Th The e next next sect sectio ion n ex exam amin ines es a MD MDA A in or orde derr to prov provid ide e an exam exampl ple e of th the e so sort rtss of  tax tax co conc nces essi sion ons, s, in ince cent ntiv ives es an and d st stab abil ilis isat atio ion n clau clause ses, s, wh whic ich h ca can n fo form rm part part of th the e te term rmss of such such ag agre reem emen ents ts..

10

http://www.worldbank w.worldbank.org/ogmc/m .org/ogmc/mining ining africa africa.. World Worl d Bank Bank Groupand Inter Internati nationalFinanc onalFinance e Corp Corporat oration(IFC), ion(IFC), Minin Mining g Regional Regional Strategies: Strategies: Afric Africa a, 200 2003, 3, http://ww htm. htm. 11 Themini Theminimumwag mumwage e inthe mi minin ning g sec sectorhas,howe torhas,however ver,, rem remain ained ed hig higherthanin herthanin ot othersect hersector orss (e.g. in 2008,it wasTshs.350 wasTshs.350,000 ,000 com comparedto paredto Tshs Tshs.65,0 .65,000 00 2010 0). in ot other her sec secto tors rs (ILO, ILO, 201

 

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5. Bar Barric rick k Buz Buzwag wagi’s i’s miner mineral al dev devel elopm opment ent agr agree eeme ment: nt: tax inc incent entive ivess and con conces cessio sions ns and sta stabil bilis isati ation on cla clause usess

Barric Bar rick k Gol Gold d Corpora Corporatio tion n is a glo globalgold balgold min miningcompa ingcompany ny wit with h hea headqu dquart arters ers in Toronto Toronto,, Can Canada ada,, anda por portfo tfolio lio of mining mining an and d expl explor orat atio ion n pr proj ojec ects ts in th the e Un Unit ited ed St Stat ates es,, Ca Cana nada da,, Aust Austra rali lia, a, Peru, Peru, Chil Chile, e, Ar Arge gent ntin ina a an and d Tanz Tanzan ania ia.. Th The e co comp mpan any y is li list sted ed 12 market ket capita capitalis lisati ation on of abo about ut US$37 US$37 bil billio lion n (about (about Tsh.48 Tsh.48.1 .1 on the Toronto Toronto,, New York York and Lon London don Sto Stock ck Exchan Exchanges ges with a mar trilli trillion) on).. In Feb Februa ruary ry 2010, 2010, Bar Barric rick k Gol Gold d Corpora Corporatio tion n sold sold out itsshares itsshares in Africa Africa to Afr Africa ican n Bar Barric rick k Gol Gold d (ABG), (ABG), a new compan company y list listed ed on th the e Lond London on St Stoc ock k Ex Exch chan ange ge with with head headqu quar arte ters rs in Lond London on.. ABG, ABG, th the e ne new w co comp mpan any y an and d a su subs bsid idia iary ry of Barr Barric ick k Gol Gold d Corp Corpor orat atio ion, n, took took ove overr co cont ntro roll of th the e fo four ur go gold ld mine miness in Tanz Tanzan ania ia:: Bu Buly lyan anhu hulu lu Gold Gold Mi Mine ne;; No Nort rth h Mara Mara Go Gold ld Mine Mine;; Tula Tulawa waka ka Policy cy Forum,2008 Forum,2008). ). Thi Thiss sec sectio tion n focuse focusess on Buzwag Buzwagii Gold Gold Mine Mine (BGM),the (BGM),the secondlarge secondlargest st Gold Gol d Mine Mine andBuzwagi andBuzwagi Gold Gold Mine Mine (Poli miningoperat min ingoperationand ionand thelarge thelargest st single single open open pitmine in thecount thecountry,openedin ry,openedin May 200 2009 9 in theKahama theKahama dis distri trict ct of Shinya Shinyanga nga re regi gion on of Ta Tanz nzan ania ia.. The The BG BGM’ M’ss gold gold rese reserv rves es ar are e esti estima mate ted d at 2.4 2.4 mill millio ion n ounc ounces es,, an and d an annu nual al pro produ duct ctio ion n is expe expect cted ed to yi yiel eld d SID,, 200 2009 9). As at 31 Dec Decemb ember er 201 2010, 0, a tot total al of 1992 1992 indivi individua duals ls wer were e employ employed ed at Buzwag Buzwagi, i, consis consistin ting g 225,000 225,00 0 oun ounces ces of gold gold (SID 13 of 80 802 2 ABG ABG Gro Group up empl employ oyee eess and and 11 1190 90 co cont ntra ract cted ed lo loca call em empl ploy oyee ees. s. BGM prov provid ides es a go good od case case st stud udy y to prob proble lema mati tise se th the e challe cha llenge ngess posed posed by ter terms ms contra contractu ctuall ally y agr agreed eed for an invest investmen mentt ini initia tiativ tive e on the governa governance nce of large large corpora corporate te entiti entities. es. Gold Gol d miningin miningin Tanzan Tanzaniais iais shroud shrouded ed in sec secrec recy. y. Theconte Thecontentsof ntsof BGMmineral BGMmineral develo developme pmentagreem ntagreement entss (MDAs) (MDAs) mad made e with with th the e Ta Tanz nzan ania ian n gover governm nmen entt and and sign signed ed in 20 2007 07,, like like ot othe herr mini mining ng ag agree reeme ment nts, s, ha have ve ne neve verr be been en made made publ public ic or di disc scus usse sed d in the Tan Tanzan zanian ian Parlia Parliamen ment. t. In Augu August st 200 2007, 7, an opposit opposition ion MP att attemp empted ted to get parlia parliamen mentt to invest investiga igate te ‘th ‘the e motive motive behind behind the deci decissio ion n by the Mini Minist ster er of Ener Energy gy an and d Min Miner era als, ls, Na Nazi zirr Kar ara ama magi gi,, to si sign gn th the e Buz uzwa wagi gi [MDA [MDA with with Ba Barr rriick] ck] at a ti time me when wh en the the go gove vern rnme ment nt had had decl declar ared ed it wo woul uld d not not sign sign an any y new new agre agreem emen ents ts’’ whil while e a go gove vern rnme ment nt re revi view ew wa wass un unde derw rway ay.. Liss ssu, u, 20 2008 08;; Th The e Gua Guard rdia ian, n, 20 2011 11). ). With With th this is pr pres essu sure re,, BG BGM M MDA wa wass ma made de av avai aila labl ble e to the the NGOs NGOs fo forr scru scruti tiny ny (s (see ee Curti Curtiss & Li An exam examin inat atio ion n of the the te term rmss of the the MD MDA A by th the e re rese sear arch cher er revea reveals ls th that at Barr Barric ick k re rega gard rded ed st stab abil ilis isat atio ion n of th the e tax tax an and d fisca fiscall laws laws in Tanz Tanzan ania ia as a fun funda dame ment ntal al req requi uire reme ment nt fo forr it itss inves investm tmen entt in Ta Tanz nzan ania ia (pr (prea eamb mble le 5) 5).. Th The e ag agre reem emen entt co comm mmit itte ted d th the e go gove vern rnme ment nt to main mainta tain inin ing, g, th thro rough ughout out th the e life life of th the e mini mining ng proj projec ect, t, th the e re regul gulat atio ions ns an and d tax tax le leve vels ls in fo forc rce e at th the e ti time me of  sig signin ning g the agr agreem eement ent.. Thus, Thus, the agr agreem eement ent sta stated ted tha that: t: ‘The durat ration of the Special Mining Licence shall be for a period of twen entty five (2 (25 5) years with an option for the co comp mpan any y to ren renew ew th the e same same upon upon th the e same same term termss and and co cond ndit itio ions ns fo forr a fu furt rthe herr peri period od of tw twen enty ty fiv five e (2 (25) 5) year years’ s’ (a (art rtic icle le 3.2.1). An ex exam amin inat atio ion n of the the MDA MDA also also reve reveal alss that that th the e Tanz Tanzan ania ian n go gove vern rnme ment nt had had gu guar aran ante teed ed th that at th the e comp compan any y wo woul uld d be re requ quir ired ed to pa pay y a redu reduce ced d ra rate te of ta tax. x. With With rega regard rd to loca locall gove govern rnme ment nt taxe taxes, s, th the e MDA MDA stat stated ed that: ‘[ ‘[th the e ta tax] x] shal shalll not not be base based d on pr profi ofits ts,, sale sales, s, outp output ut fr from om mi mini ning ng oper operat atio ion n or va valu lue e of the the land land us used ed fo forr th the e mi mine ne.. .. 14 any y cale calend ndar ar prov provid ided ed th that at th the e ag aggre grega gate te of such such loca locall gov gover ernm nmen entt ra rate tess an and d taxe taxess shal shalll no nott ex exce ceed ed US US$2 $200 00,0 ,000 00 in an year’ yea r’ (artic (articles les 4.3.2 4.3.2 and 4.3 4.3.2) .2).. Th The e go gover vernm nmen entt of Ta Tanz nzan ania ia also also exem exempt pted ed th the e comp compan any y from from payi paying ng VA VAT T an and d allo allowe wed d it to repat repatri riat ate e all all profi profits ts ma made de fr from om mi mini ning ng acti activi viti ties es in th the e co coun untr try y (art (artic icle le 5.1) 5.1).. The The ta tax x co conc nces essi sion onss an and d in ince cent ntiv ives es of offe fered red un unde derr th the e te term rmss of th the e MDA al also so guar guaran ante teed ed th that at the the comp compan any y woul would d be requ requir ired ed to pa pay y a low low roya royalt lty y rate rate.. Thus Thus,, it was was st stat ated ed th that at:: ‘The company shall pay to the go gov vernment a low ‘royalty at the rate of 3% on the Net Back15 Va Valu lue e of all all mi mine nera rall pr prod oduc uced ed from from th the e Cont Contra ract ct Area Area,, ot othe herr th than an Diam Diamon ond, d, in resp respec ectt of whic which h th the e roya royalt lty y sh shal alll eq equa uall 5% of th the e Ne Nett Ba Back ck Value’ Val ue’ (artic (article le 4.1.1) 4.1.1).. To offe offerr tax tax co conc nces essi sion ons, s, ar arti ticl cle e 4.7 4.7 of th the e agree agreeme ment nt st stat ated ed th that at:: ‘T ‘The he comp compan any y shal shalll be allo allowe wed d to dedu deduct ct 80% 80% of capi capita tall expe expend ndit itur ure e in incu curr rred ed in th the e year year,, th ther erea eaft fter er 50 50% % pe perr annu annum m on decl declin inin ing g ba bala lanc nce e me meth thod od,, provi provide ded d th that at th the e go gove vern rnme ment nt shal shalll ha have ve ma made de le legi gisl slat ativ ive e ch chan ange gess to en ensu sure re th that at th this is 16 prov provis isio ion n is appl applic icab able le unde underr th the e laws laws of Tanz Tanzan ania ia’. ’. Th The e go gover vernm nmen entt of Tanz Tanzan ania ia also also gu guar aran ante tee e th that at it shal shalll no nott unde undert rtak ake e any any nati nation onal alis isat atio ion n or expr exprop opri riat atio ion n of asse assets ts;; arti articl cle e 10 of th the e agree agreeme ment nt st stat ated ed:: ‘T ‘The he go gove vern rnme ment nt shal shalll no nott nati nation onal alis ise e or comp compul ulso sori rily ly acqu acquir ire e th the e whol whole e or any any part part of th the e co comp mpan any’ y’ss in inte tere rest st in the the Sp Spec ecia iall Mi Mini ning ng Li Lice cens nse e no norr comp compul ulso sori rily ly ac acqu quir ire e or nati nation onal alis ise e any any ri righ ght, t, ti titl tle e or in inte tere rest st of th the e co comp mpan any y or it itss

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http://ww http://www.miningwa w.miningwatch.ca/sites tch.ca/sites/miningwat /miningwatch.ca/files/ ch.ca/files/Canadian Canadian Cos in Africa 2001. 2001.pdf  pdf . www.africanbarrickgold.c om/page.html?pageID=26&pageCh l?pageID=26&pageChosen=Operati osen=Operations&catego ons&categoryChosen=Buzw ryChosen=Buzwagi agi.. www.africanbarrickgold.com/page.htm 14 TheLocal Governmen Governmentt Fina FinancesAct ncesAct (1982) (1982) requi requiresall resall mini mining ng comp companie aniess to payto thelocal counciltax counciltax of 0.3%of theturnover theturnover.. Howev However, er, BuzwagiMDA’s BuzwagiMDA’s have seta cei ceilin ling g of US$200 US$200,00 ,000 0 perannum perannum.. This This amo amountis untis relati relativel vely y sma small ll compa comparedto redto themini themining ng tur turno nover ver,, yetremains yetremains theonly dir directcont ectcontrib ributi ution on that that the compan company y is req requir uired ed to make make to the local local com commun muniti ities es where where it ope operat rates. es. 15 This This is defined defined as the ma marke rkett value value of the minera minerals ls mi minus nus the the cost cost of tra transp nspor ortt and the the cost cost of sme smelti lting ng or refi refinin ning g in in-co -count untry. ry. 16 Th This is ra rate te is lowe lowerr th than an th the e cu curr rren entt 100% 100% capi capita tall dedu deduct ctio ion n allo allowe wed d to mini mining ng co comp mpan anie iess un unde derr th the e In Inco come me Tax Tax Ac Act, t, 2004 2004.. Ho Howe weve ver, r, the the appl applic icat atio ion n of  of th the e lo lowe werr ra rate te is ba base sed d upon upon th the e gove govern rnme ment nt of Ta Tanz nzan ania ia ch chan angi ging ng th the e curr curren entt law, law, wh whic ich h ca cann nnot ot be ch chan ange ged d due due to fisca fiscall st stab abil ilit ity y guar guaran ante teed ed by th the e stabil stabilisa isatio tion n claus clauses. es. Thu Thus, s, Barric Barrick k will will contin continue ue to enjoy enjoy th the e 100% 100% cap capita itall expend expenditu iture re wr write ite-of -offf (see (see Cur Curtis tis and Li Lissu ssu,, 200 2008 8). 13

 

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contra con tracto ctors rs or sub subcon contra tracto ctors rs in any propert property y used used for the purpose purpose of mining mining operat operation ionss on or in rel relati ation on to the Special Special Mi Mini ning ng Li Lice cens nse, e, pr provi ovide ded d th that at,, if it does does ta take ke any any su such ch acti action on to acqui acquire re th thos ose e asse assets ts,, it wi will ll pay pay a co comp mpen ensa sati tion on in US doll dollar arss to an acco accoun untt outs outsid ide e Ta Tanz nzan ania ia sp spec ecifi ified ed by th the e Comp Compan any y in an amou amount nt an and d mann manner er th that at is promp prompt, t, adequ adequat ate e and effec effective’. tive’. The The MD MDA A al also so ga gave ve th the e co comp mpan any y po powe werr in rel relat atio ion n to expl explora orati tion on,, extr extrac acti tion on,, tr tran ansp sport ortat atio ion n and and occu occupa pati tion on of land land.. It comm commit itte ted d th the e Ta Tanz nzan ania ian n go gove vern rnme ment nt to allo allow w th the e co comp mpan any y to acqui acquire re land land,, an and d also also to be ab able le to re relo loca cate te me memb mber erss of th the e lo loca call co comm mmun unit ity y who who ha had d pr prev evio ious usly ly owne owned d th the e mini mining ng righ rights ts:: ‘I ‘Iff th the e comp compan any y fin finds ds it nece necess ssar ary, y, fo forr th the e pu purp rpos ose e of buil buildi ding ng th the e pr proj ojec ectt and and re rele leva vant nt in infr fras astr truc uctu ture res, s, to make make us use e of th the e la land nd wh whic ich h is la lawf wful ully ly ow owne ned, d, occup occupie ied d or unde underr ca care re an and d char charge ge of ot othe herr pers person on,, th the e gover governm nmen entt sh shal all, l, upon upon the the requ reques estt of the the co comp mpan any, y, as assi sist st th the e comp compan any y in it itss effo effort rt to agre agree e with with such such pers person onss in ob obta tain inin ing g th the e perm permis issi sion on or re rent ntin ing g or purc purcha hasi sing ng such uch lan land, an and d if the com ompa pan ny is una unabl ble e to come come to an agree greeme men nt wi with th suc uch h pe pers rson ons, s, th the e gover gov ernm nmen entt sh shal alll as assi sist st th the e co comp mpan any y subj subjec ectt to th the e provi provisi sion on of th the e Act Act or an any y am amen endm dmen ents ts or re re-e -ena nact ctme ment nt th ther ereo eof  f  in or orde derr to en enab able le th the e comp compan any y to make make use use of such such land land’’ (art (artic icle le 9. 9.2) 2).. Th This is ho howe wever ver ha hass ra rais ised ed se seri riou ouss qu ques esti tion onss abou aboutt th the e loca locall co comm mmun unit itie ies’ s’ ri righ ghtt to land land an and d ri righ ghtt fo forr comp compen ensa sati tion on.. Examin Exa minati ation on of the MDA also also sh show owss th that at no limi limits ts we were re plac placed ed on th the e nu numb mber er of expa expatr tria iate te st staf afff th that at co coul uld d be empl employ oyed ed in the min mine e in Tan Tanzan zania; ia; and tha thatt expa expatri triate ate sta staff ff were giv given en par partic ticula ularr and spe specia ciall treatm treatment ent com compar pared ed to loc local al emp employ loyees ees.. Th Thus us,, arti articl cle e 8. 8.2 2 of th the e agre agreem emen entt st stat ated ed th that at ‘the ‘the go gover vernm nmen entt will will exped expedit itio ious usly ly gr gran ant’ t’ appl applic icat atio ions ns of th the e co comp mpan any y an and d it itss contra con tracto ctors rs and sub sub-co -contr ntract actors ors for work work per permit mits. s. Art Articl icle e 8.4 pro provid vided ed that that ‘th ‘the e compan company, y, its contra contracto ctors rs and sub subcon contra tracto ctors rs willl be ent wil entitl itled ed to imp importtheirperson orttheirpersonal al andhouse andhousehol hold d eff effect ects, s, inc includ ludingone ingone automo automobil bile, e, freeof importduty importduty andothertaxes’. andothertaxes’. Th They ey we were re al also so enti entitl tled ed to ‘expo ‘export rt free freely ly from from Tanz Tanzan ania ia’’ all all of th thei eirr sala salary ry (a (art rtic icle le 8. 8.5) 5).. Articl Art icle e 11. 11.1 1 provid provided ed tha thatt ‘the ‘the gov govern ernmen mentt sha shall ll ens ensure ure tha thatt during during the ter term m of the agreem agreement ent,, leg legal al provis provision ionss govern governing ing 17 the the co comp mpan any y or it itss sh shar areh ehol olde ders rs’’ be bene nefit fits, s, ri righ ghts ts and and duti duties es in th the e foll follow owin ing g matt matters ers sh shal alll no nott be ch chan anged ged’. ’. Furthermore, articl article e 11. 11.2 2 stated stated tha that: t: ‘In th the e ev even entt of fund fundam amen enta tall ch chan ange gess co conc ncer erni ning ng th the e Comp Compan any y or it itss shar shareh ehol olde ders rs’’ be bene nefit fits, s, ri righ ghts ts an and d du duti ties es un unde derr subsub-ar arti ticl cle e 11.1 11.1,, whic which h woul would d plac place e th the e comp compan any y in a wo wors rse e of offf si situ tuat atio ion n th than an it was was on th the e ef effe fect ctiv ive e date date,, th the e Go Govvernme ern ment nt sh shal alll in co cons nsul ulta tati tion on wi with th th the e Co Comp mpan any y ta take ke nece necess ssar ary y st step epss to en ensu sure re th that at th the e Comp Compan any’ y’ss ri righ ghtt or in inte tere rest st are not ero eroded ded or oth otherwi erwise se materi materiall ally y dim dimini inishe shed’. d’. Arti Articl cle e 13 pr pres escr crib ibed ed the the disp disput ute e sett settle leme ment nt pr proc oced edur ure e with with ar arbi bitr trat atio ion n be bein ing g admi admini nist ster ered ed in th the e UK by th the e Lo Lond ndon on Court Cou rt of In Inte tern rnat atio iona nall Arbi Arbitr trat atio ion n (LCIA) (LCIA) in ac acco cord rdan ance ce wi with th th the e Un Unit ited ed Na Nati tion onss Commi Commiss ssio ion n on In Inte tern rnat atio iona nall Tr Trad ade e La Law w (UNCITR (UN CITRAIL) AIL) arb arbitr itrati ation on rul rules es in force force of the fisc fiscal al sta stabil bilisa isatio tion n dat date e (artic (article le 13. 13.2). 2). Theref The refore, ore, Buzwag Buzwagi’s i’s MDA pr prov ovid ides es an ex exam ampl ple e of th the e natu nature re of MDAs MDAs and and ot othe herr in inve vest stme ment nt agre agreem emen ents ts in Tanz Tanzan ania ia.. Th The e im impl plic icat atio ions ns of stab stabil ilis isat atio ion n clau clause sess and and ot othe herr ince incent ntiv ives es fo forr th the e re real alis isat atio ion n of hu huma man n ri righ ghts ts in Ta Tanz nzan ania ia are are di disc scus usse sed d next. 5. 5.1. 1. The The impl implic icat atio ion n of ta tax x co conc nces essi sion ons, s, in ince cent ntiv ives es an and d stab stabil ilis isat atio ion n clau clause sess fo forr huma human n righ rights ts

Th The e prev previo ious us se sect ctio ion n show showed ed th that at th the e Tanz Tanzan ania ian n go gove vern rnme ment nt has has ch chos osen en to ad adop optt va vari riou ouss st stra rate tegi gies es and and poli polici cies es (such (such as ta tax x co conc nces essi sion onss and and stab stabil ilis isat atio ion n clau clause sess in MD MDAs As)) in orde orderr to at attr trac actt fo fore reig ign n in inves vestm tmen entt in th the e mi mini ning ng sect sector or.. The The abov above e analys ana lysis is of Buz Buzwag wagi’s i’s MDA provi provide dess an exam exampl ple e of th the e so sort rtss of ta tax x co conc nces essi sion ons, s, in ince cent ntiv ives es an and d st stab abil ilis isat atio ion n clau clause ses, s, whic which h are ins insert erted ed in mininginvest mininginvestmen mentt agr agreem eement ents. s. The use of such such str strate ategie giess andthe adopti adoption on of such such polici policies es raise raise fundam fundament ental al questio ques tions ns abo about ut the abilit ability y of the Tanzan Tanzanian ian gove governm rnment ent to enact enact and enf enforc orce e laws laws and reg regula ulatio tions ns that that pro promot mote e and pro protec tectt human hum an rights rights.. This This sec sectio tion n con consid siders ers the constr constrain aints ts cre create ated d by the ter terms ms agr agreed eed in MDAson the promot promotionand ionand enforc enforceme ement nt of such such hu huma man n ri righ ghts ts.. As was shown above, in order to guarantee secrecy ecy, the terms laid down in MDAs DAs are often decided upon by only a sm smal alll gr group oup of gov gover ernm nmen entt of offic ficia ials ls and and ar are e ra rare rely ly disc discus usse sed d in Parl Parlia iame ment nt or di disc sclo lose sed d to th the e genera generall publ public ic (T (The he Ci Citi tizen zen,, 2008 2008). ). Fo Forr exa examp mple le,, Bu Buzwa zwagi gi’s ’s MD MDA A be betw twee een n th the e Ta Tanz nzan ania ian n go gover vernm nmen entt an and d Barr Barric ick k Com Compa pany ny was was si sign gned ed by th the e fo form rmer er Mi Mini nist ster er of En Ener ergy gy an and d Mi Mine nera rals ls (M (MEM EM), ), Na Nazi zirr Kara Karama magi gi,, in a ho hote tell in Lo Lond ndon on,, a fact fact th that at ha hass be been en crit critic icis ised ed by th the e medi media, a, is & Li Liss ssu, u, 20 2008 08;; Th The e Gu Gua ard rdia ian n, 20 2011 11). ). Th The e secr secrec ecy y surr surrou ound ndin ing g such such MD MDAs As and and NGOs and members of the public (Curt Curtis th the e guar guaran ante tee e of stri strict ct confi confide dent ntia iali lity ty has has kept kept th the e pu publ blic ic ‘i ‘in n th the e dark dark’. ’. In ot othe herr word words, s, pu publ blic ic scru scruti tiny ny and and di disc scus ussi sion on of  th the e term erms of MD MDAs As is vi virt rtua uallly impo imposs ssiible, ble, whic which h mak akes es it diffi difficu cult lt to ho holld the gove govern rnm men entt to accou ccount nt fo forr the the fact act tha hatt

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Th This is incl includ udes es agre agreem emen ents ts su such ch as: as: th the e dura durati tion on of th the e Spec Specia iall Mini Mining ng Lice Licens nse e or th the e us use e of land land over over the the Cont Contra ract ct Ar Area ea in incl clud udin ing g the the us use e of any any land land lo loca cate ted d be beyo yond nd th the e Cont Contra ract ct Ar Area ea fo forr it itss in infr fras astr truc uctu ture re or st stor orag age e or tran transp spor ortt of it itss prod produc ucts ts (s. (s. 11 11.1 .1.1 .1); ); br brin ingi ging ng in into to Ta Tanz nzan ania ia expa expatr tria iate te pers person onne nel, l, machin mac hinery ery,, equ equipm ipment ents, s, too tools, ls, struct structure ures, s, transp transportvehic ortvehicles les,, access accessori ories, es, spa spare re parts parts an and d other other ma mater terial ialss wh whichare ichare nec necess essary ary for the the bui buildi lding ng of the mi mine ne or th the e co cond nduc uctt of th the e mini mining ng op oper erat atio ions ns (s (s.. 11 11.1 .1.2 .2); ); exem exempt ptio ion n from from taxe taxes, s, duti duties es,, le levi vies es an and d im impo port rtss of any any na natu ture re (s. (s. 11 11.1 .1.3 .3); ); guar guaran ante tees es of tran transf sfer er of  capita capital, l, profit profitss anddivid anddividend endss andguara andguarant ntee ee agains againstt exprop expropria riatio tion n (s.11.1.4);prici (s.11.1.4);pricing ng or exp expor ortt of gold gold (s.11.1. (s.11.1.5);retai 5);retainin ning g andremit andremittin ting g abr abroadmone oadmoney y in foreig foreign n cur curren rency cy (s. 11. 11.1.6 1.6); ); lia liabil bility ity to roy royalt alty, y, inc income ome tax an and d the met metho hod d of compu computat tatio ion n the thereo reoff (s. 11. 11.1.7 1.7); ); and any other other ma matte tterr wh which ich is fun fundam dament ental al to th the e econom economic ic positi position on of the the com compan pany y (s. 11. 11.1.8 1.8). ).

 

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su such ch ag agre reem emen ents ts fa fail il to make make an any y pr prov ovis isio ion n with with rega regard rd to the the pr prom omot otio ion n and and pr prot otec ecti tion on of hu huma man n ri righ ghts ts in th the e mi mini ning ng industry. indust ry. Alt Althou hough gh MDAs offer offer inv invest estmen mentt con conces cessio sions, ns, gua guaran rantee teess and pro protec tectio tions, ns, they they make make no specifi specificc req requir uireme ements nts for co comp mpan anie iess to addr addres esss fund fundam amen enta tall huma human n righ rights ts issu issues es (suc (such h as righ rightt to a clea clean n en envi viro ronm nmen ent, t, to he heal alth th an and d sa safe fety ty,, an and d to no nonn-di disc scri rimi mina nati tion on an and d fr free eedo dom m of as asso soci ciat atio ion n in th the e wo work rk plac place) e).. Th The e us use e of MDAs MDAs,, in part partic icul ular ar th the e us use e of st stab abil ilis isat atio ion n clau clause ses, s, gu guar aran ante tees es th the e ‘s ‘sta tabi bili lity ty’’ of favo favour urab able le te term rmss and and co cond ndit itio ions ns over over th the e lo long ng-t -ter erm m li life fe of th the e in inve vest stme ment nt proj projec ect, t, bu butt this this has advers adverse e implic implicati ations ons for the rea realis lisati ation on of hum human an rights rights.. In par partic ticula ular, r, ‘fr ‘freezi eezing ng clause clauses’, s’, whi which ch guar guarant antee ee the lon longgter term m fisc fiscal al sta stabil bility ity of a mining mining pro projec ject, t, have have been been critic criticise ised d for the their ir pot potent ential ial to overri override de any subseq subsequen uentt change changess in the law Cotul ula, a, 20 2008 08;; Sh Shiv ivji ji,, 20 2007 07). ). Fo Forr ex exam ampl ple, e, in th the e Bu Buzw zwag agii MD MDA, A, th the e an and d th the e ne need ed to upho uphold ld re resp spon onsi sibl ble e bu busi sine ness ss prac practi tice cess (Cot stab stabil ilis isat atio ion n cl clau ause sess ar are e bi bind ndin ing g fo forr a peri period od of 25–5 25–50 0 year years. s. As a re resu sult lt,, any any futu future re chan change gess in th the e law law (e.g . those contained contained in th the e new new Mi Mini ning ng Act Act 2010 2010)) on only ly affe affect ct new new mi mini ning ng co comp mpan anie ies, s, no nott th the e Bu Buzw zwag agii proj projec ectt and and ex exis isti ting ng mi mini ning ng comp compan anie ies. s. This This is be beca caus use e su such ch clau clause sess ar are e st stat ated ed to last last fo forr th the e dura durati tion on of th the e proj projec ect. t. In th this is co cont ntext ext,, st stab abil ilis isat atio ion n clau clause sess co cons nstr trai ain n the abilit ability y of the Tanzan Tanzanian ian gove governm rnment ent to pursue pursue hum human an rights rights goa goals, ls, as suc such h clause clausess pre preven ventt the govern governmen mentt from from making making ne new w la laws ws an and d re regu gula lati tion onss to impr improve ove labo labour ur st stan anda dard rdss (e.g. with with re rega gard rd to equal equal pay, pay, an and d no nonn-di disc scri rimi mina nati tion on in th the e work work 18 place) pla ce) and als also o env enviro ironme nmenta ntall sta standa ndards rds.. Althou Although gh MDAsgive conces concessio sions ns to min miningcompa ingcompanie niess to posses possesss andacquire andacquire land land in themining themining areas,this areas,this hasthrea hasthreaten tened ed the the huma human n ri righ ghts ts of loca locall resi reside dent nts, s, lead leadin ing g to seri seriou ouss co confl nflic icts ts betw betwee een n loca locall comm commun unit itie iess and and th the e mi mini ning ng comp compan anie ies. s. Loca Locall re resi side dent ntss ha have ve be been en co conc ncer erne ned d abou aboutt th the e ongo ongoin ing g so soci cial al unre unrest st and and un unre reso solv lved ed co confl nflic icts ts re resu sult ltin ing g from from th the e fo forc rcef eful ul ev evic icti tion on of lo loca call pe peop ople le from from th the e mini mining ng ar area ea and and ab abou outt th the e unfa unfair ir or no nonn-ex exis iste tent nt am amou ount ntss of co comp mpen ensa sati tion on awar awarde ded d fo forr o, 20 2011 11;; Th The e Gua Guard rdia ian, n, 20 2011 11). ). Ac Acco cord rdin ing g to Lauw Lauwo o (i (ibi bid) d),, loca locall re resi side dent ntss have have co comp mpla lain ined ed of  their the ir dis displa placem cement ent (see Lauw Lauwo, be bein ing g un unla lawf wful ully ly and and forc forcef eful ully ly disp displa lace ced, d, of not not be bein ing g co comp mpen ensa sate ted d an and d of be bein ing g mi mist stre reat ated ed (p. 22 225) 5).. It ha hass be been en re repo port rted ed Curt rtis is & that that 400, 400,00 000 0 arti artisa sana nall mi mine ners rs we were re ev evic icte ted d fr from om thei theirr land land in 1996 1996 to make make room room fo forr fo fore reig ign n mi mini ning ng comp compan anie iess (Cu Lissu, Lis su, 200 2008; 8; Kit Kitula ula,, 200 2006 6). Al Alth thoug ough h th the e UN Comm Commis issi sion on on Hu Huma man n Ri Righ ghts ts recog recogni nise sess fo forc rced ed ev evic icti tion on as a gro gross ss vi viol olat atio ion n of  is & Li Liss ssu, u, 20 2008 08;; La Lauw uwo, o, 20 2011 11). ). In ot othe herr hu huma man n ri righ ghts ts,, the the gove govern rnme ment nt of Tanz Tanzan ania ia is on th the e ‘hor ‘horns ns of dile dilemm mma’ a’ (s (see ee Curt Curtis word wo rds, s, if the the gove govern rnme ment nt impo impose sess to too o ma many ny rest restri rict ctio ions ns on comp compan anie iess to en ensu sure re th that at th they ey re resp spec ect, t, prot protec ectt and and en enfo forc rce e hu huma man n ri righ ghts ts,, this this ma may y have have a nega negati tive ve effe effect ct in th that at co comp mpan anie iess ma may y de deci cide de no nott to in inve vest st in Tanz Tanzan ania ia,, whic which h will will in tu turn rn have hav e a con consid sidera erable ble detrim detriment ental al imp impact act on its soc socioio-eco econom nomic ic dev develo elopme pment. nt. Althou Although gh articl article e 6 of the Int Intern ernati ationa onall Lab Labour our Organi Org anisat sation ion’s ’s Ind Indige igenou nouss and Tribal Tribal Peo People pless Con Conven ventio tion n of 198 1989 9 req requir uires es sta states tes to consul consultt loc local al res reside idents nts and obtain obtain their their free free cons consen entt befo before re th they ey ta take ke over over th thei eirr land land,, the the st stab abil ilis isat atio ion n clau clause sess in MD MDAs As cons constr trai ain n th the e capa capaci city ty of th the e Tanz Tanzan ania ian n gove govern rnme ment nt to en enfo forc rce e su such ch rule rules. s. Thus Thus,, wh whil ile e the the st stat ate e is ex expe pect cted ed to pr prot otec ectt th the e hu huma man n ri righ ghts ts of it itss citi citize zens ns,, th the e fisca fiscall sta stabil bilityguaran ityguarantee teed d by the sta stabil bilisa isatio tion n cla clause usess hasconstrai hasconstrained ned the Tanzan Tanzanian ian gov govern ernmen ment’s t’s abi abilit lity y to meet meet its human human rig rights hts ob obli liga gati tion ons. s. Th This is is be beca caus use e the the st stab abil ilis isat atio ion n clau clause sess lega legall lly y bind bind th the e go gover vernm nmen entt to main mainta tain in th the e same same taxe taxess an and d fisca fiscall laws laws ap appl plic icab able le to th the e mi mini ning ng comp compan anie iess fo forr th the e enti entire re dur durat atio ion n of th the e mi mine ne (s (see ee This This Day Day,, 200 2009a 9a). ). In other other words, words, the Tan Tanzan zanian ian go gove vern rnme ment nt th ther eref efor ore e la lacks cks th the e ca capa paci city ty to appl apply y it itss exi exist stin ing g laws laws or to crea create te ne new w soci social al an and d en envi viro ronm nmen enta tall st stan anda dard rdss in or orde derr to pr prom omot ote e th the e full full re real alis isat atio ion n of huma human n righ rights ts in Tanz Tanzan ania ia.. With Wit h rega regard rd to env enviro ironme nmenta ntall iss issues ues,, loc local al commun communiti ities es res residi iding ng nea nearr the mining mining sites sites in Tanzan Tanzania ia have have raised raised concer concerns ns ab abou outt th the e poll pollut utio ion n and and envi enviro ronm nmen enta tall degra degrada dati tion on whic which h ha have ve occur occurre red d in lo loca call ne neig ighb hbour ourho hood ods, s, an and d th the e fact fact th that at th they ey The e Ci Citi tize zen, n, 20 2009 09c; c; Th The e Gu Guar ardi dian an,, 20 2009 09a, a, 20 2011 11). ). As th the e mi mine ness are are ar are e de deni nied ed the the ri righ ghtt to a sa safe fe an and d clea clean n en envi viro ronm nmen entt (see (see Th loca locate ted d clos close e to loca locall ne neig ighb hbou ourh rhoo oods ds,, th ther ere e is a high high ri risk sk of envi enviro ronm nmen enta tall de degra grada dati tion on an and d th the e im impa pact ct of th this is is fe felt lt most most of  al alll by memb members ers of th the e lo loca call co comm mmun unit itie ies. s. Acco Accord rdin ing g to th the e 19 1972 72 UN Conf Confere erenc nce e on th the e Human Human Envi Enviro ronm nmen entt in St Stoc ockh khol olm m andthe 199 1992 2 UN Con Confer ferenc ence e on Enviro Environme nment nt andDevelo andDevelopme pment nt in Rio Rio,, ‘ea ‘each ch ind indivi ividua duall hasthe fundam fundament ental al rig right ht to fre freedo edom, m, eq equa uali lity ty and and adeq adequa uate te co cond ndit itio ions ns of life life,, in an env enviro ironme nment nt of a qua qualit lity y th that at perm permit itss a li life fe of di dign gnit ity y an and d well well-b -bei eing ng,, and and he be bear arss a so sole lemn mn re resp spon onsi sibi bili lity ty to prot protec ectt and and impr improv ove e th the e envi enviro ronm nmen entt fo forr prese present nt an and d fu futu ture re ge gene nera rati tion ons’ s’.. This This ho howe wever ver ha hass beco become me ques questi tion onab able le in th the e mi mini ning ng ar area eass in Tanz Tanzan ania ia.. Mi Mini ning ng comp compan anie iess ha have ve be been en bl blam amed ed fo forr caus causin ing g poll pollut utio ion n in th the e mini mining ng re regi gion ons, s, in part partic icul ular ar by sp spil illa lages ges of cy cyan anid ide e and and ot othe herr he heav avy y meta metals ls.. The The amoun amountt of cyan cyanid ide e an and d he heav avy y meta metals ls leak leakin ing g from from wa wast ste e roc rock k pi pile less and and th the e ta tail ilin ing g da dams ms of th the e big big mini mining ng co comp mpan anie iess is much much hi high gher er th than an th that at recom recomme mend nded ed as safe safe by th the e Worl World d He Heal alth th Organ Organis isat atio ion n (W (WHO HO)) and and by th the e USA and and Tanz Tanzan ania ian n reg regul ulat ator ory y bo bodi dies es (s (see ee Al Alma mass et al al., ., 20 2009 09). ).19 Ther There e is ev evid iden ence ce to show show th that at th the e high high leve levels ls of po pois ison onou ouss heav heavy y me meta tals ls and and cyan cyanid ide e in th the e en envi viro ronm nmen entt arou around nd th the e mine miness ha have ve caus caused ed se seri rious ous heal health th pr prob oble lems ms in th the e lo loca call co comm mmun unit itie iess re resi sidi ding ng ne near arby by (s (see ee Alma Almass et al al., ., 20 2009 09). ). Local Local peo people ple liv livingin ingin miningareasface miningareasface a seriou seriouss risk risk of suffer sufferingand ingand dyi dying ng from from hea health lth-rel -relate ated d problem problemss causedby causedby theeffects theeffects of pollut pollution ion Alma mass et al al., ., 20 2009 09;; Th The e Ci Citi tizen zen,, 20 2009 09c; c; Th This is Da Day, y, 20 2009 09c; c; Th The e Gua Guard rdia ian, n, 20 2009 09b b). A stu tudy dy by from from he heav avy y me meta tals ls an and d cy cyan anid ide e (Al Bit Bitala ala,, Kwe Kweyun yunga, ga, and Man Manoko oko (20 (2009) 09) f ound o und th that at th the e co cons nsum umpt ptio ion n of fo food od an and d wate waterr poll pollut uted ed by he heav avy y meta metals ls ha had d caus caused ed he heal alth th prob proble lems ms,, whic which h had had en enda dang nger ered ed the the live livess of pe pers rson onss resi residi ding ng ne near ar th the e mi mini ning ng area areass (p. (p. 12 12). ). In fact fact it wa wass reported tha hatt at lea east st 43 vi vill llag ager erss ha had d di died ed as a re ressult ult of drin drinki king ng th the e ‘poi ‘poiso sone ned d wate waterr whic which h le leak aked ed from from the mi min nin ing g tai aillin ing g dam dam Guardi rdian, an, 200 2009b 9b). ). Thus Thus th the e co conc ncen entr trat atio ions ns of heav heavy y meta metals ls an and d haza hazard rdous ous ch chem emic ical alss in in into to th the e ne near arby by Ti Tigi gith the e Ri Rive ver’ r’ (The Gua

18

Sta Stabil bilisa isatio tion n cla clause usess provid provide e immun immunity ity to the existi existing ng mi minin ning g compa companie niess from from any new laws laws which which mi might ght affect affect their their mi minin ning g act activi ivitie ties, s, in inclu cludin ding g any obl obliga igatio tion n on their their part part to pro promo mote te and gua guaran rantee tee hum human an rig rights hts.. 19 E.g. sa samp mple le wa wate terr ta take ken n fr from om one one rive riverr in No Nort rth h Mara Mara Go Gold ld Mi Mine ne (a mi mini ning ng si site te wi with th alle allege ged d spil spills ls in 20 2009 09), ), co cont ntai aine ned d an ar arse seni nicc le leve vell of 11 1142 42 g/l, dra drasti stical cally ly above above the WHO rec recom ommen mended ded level level of 10 g/l for drinki drinking ng wa water ter (Al Alma mass et al al., ., 20 2009 09). ). High High lev levels els of arseni arsenicc can can cause cause ser seriou iouss ski skin n proble problems. ms.

 

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ne neig ighb hbou ourh rhoo oods ds clos close e to th the e mine miness ha have ve depr depriv ived ed re resi side dent ntss no nott only only of th thei eirr ri righ ghtt to a safe safe and and clea clean n en envi viro ronm nmen entt bu butt also also Guardi rdian, an, 200 2009b 9b). ). of thei theirr ri righ ghtt to a cl clea ean n and and safe safe wa wate terr supp supply ly (see (see The Gua Local Loc al res reside idents nts hav have e ind indica icated ted concer concern n abo about ut the rol role e pla played yed by gov govern ernmen mentt regula regulatio tions ns in mitiga mitigatin ting g the enviro environme nmenta ntall cons consequ equen ence cess of mi mini ning ng acti activi viti ties es in th the e lo loca call co comm mmun unit itie ies, s, an and d th the e co cons nseq equen uentt fail failur ure e to prom promot ote e an and d prot protec ectt th thei eirr basi basicc hu huma man n righ rights ts.. Yet, Yet, desp despit ite e thes these e co conc ncer erns ns on soci social al and and envi enviro ronm nmen enta tall co cons nseq eque uenc nces es and and th the e asso associ ciat ated ed he heal alth th is issu sues es,, th the e Citize izen, n, 200 2009c 9c). ). Th This is is du due e in part part to Tanzan Tan zanian ian governm government ent has done done ver very y lit little tle to invest investiga igate te local local citize citizens’ ns’ con concer cerns ns (The Cit the the fact fact th that at th the e gover governm nmen entt of Ta Tanz nzan ania ia’s ’s ca capa paci city ty to chan change ge exis existi ting ng so soci cial al an and d en envi viro ronm nmen enta tall st stan anda dard rdss in th the e mi mini ning ng sect sector or in or orde derr to pr prom omot ote e the the soci social al we welf lfar are e of it itss citi citize zens ns an and d to meet meet it itss UDHR UDHR ob obli liga gati tion onss is cons constr trai aine ned d by th the e te term rmss of  the the MD MDAs As,, wh whic ich h th the e go gover vernm nmen entt has has ente entere red d into into with with th the e mi mini ning ng co comp mpan anie ies. s. In ot othe herr word words, s, in inves vestm tmen entt in ince cent ntiv ives es have have taken taken prior priorit ity y ove overr th the e prom promot otio ion n of huma human n ri righ ghts ts in th the e mini mining ng se sect ctor or in Ta Tanz nzan ania ia.. Ta Tanz nzan ania ia ha hass rat ratified ified the ILO ILO co conv nven enti tion on aim imed ed at en ensu suri rin ng work worker ers’ s’ huma human n ri righ ghtts, such uch as th the e ri righ ghtt to free freedo dom m of  as asso soci cia ation tion,, th the e ri righ ghtt to orga organi nisse and and barga argain in co coll llec ecti tive velly and and th the e ri righ ghtt no nott to su suff ffer er di disc scri rim min inat atiion in th the e work work pla place. ce. However How ever,, thegovern thegovernmen ment’sabili t’sability ty to enf enforc orce e laws laws whi which ch protectsuch protectsuch labour labour rig rightsin htsin themining themining sector sector,, as with with other other human human righ rights ts,, is hi high ghly ly prob proble lema mati tic. c. In fa fact ct,, th the e evide evidenc nce e of incr increa easi sing ng empl employ oyee ee grie grieva vanc nces es relat relatin ing g to po poor or work workin ing g co cond ndit itio ions ns,, un unfa fair ir tr trea eatm tmen entt an and d disc discri rimi mina nato tory ry prac practi tice cess in th the e work workpl plac ace e (see (see Cu Curt rtis is & Li Liss ssu, u, 20 2008 08;; La Lauw uwo, o, 20 2011 11)) raises raises que questi stions ons abou aboutt th the e reali realisa sati tion on of wo work rker ers’ s’ righ rights ts in Tanz Tanzan ania ia.. Mini Mining ng co comp mpan anie iess ha have ve be been en alle allege ged d to ha have ve di disc scou oura rage ged d empl employ oyees ees 20 espite ite the enactm enactment ent of the Employ Employmen mentt and from from join joinin ing g a unio union, n, for for in inst stan ance ce,, by th thre reat aten enin ing g to fire fire th them em if th they ey do so. so. Desp La Labo bour ur Rela Relati tion onss Act Act 20 2004 04,, wh whic ich h ai aime med d to demo democr crat atis ise e work worker ers’ s’ ri righ ghts ts an and d en enha hanc nce e co coll llec ecti tive ve barg bargai aini ning ng,, th the e en enjo joym ymen entt of labo labour ur ri righ ghts ts in Tanz Tanzan ania ia rema remain inss a fic ficti tion on (see (see Lauw Lauwo, o, 20 2011 11;; Sh Shiv ivji ji,, 20 2004 04). ). Whil While e it re rema main inss di diffi fficu cult lt fo forr wo work rker erss in th the e priv privat ate e sect sector or to stri strike ke,, work worker erss in so some me oc occu cupa pati tion onss in th the e pu publ blic ic se sect ctor or (s (suc uch h as th thos ose e work workin ing g in th the e wate water, r, el elec ectr tric icit ity, y, air air tr traf affic fic co cont ntro rol, l, tele teleco comm mmun unic icat atio ion n and and civi civill avia aviati tion on indu indust stri ries es)) are are co comp mple lete tely ly barr barred ed from from exerc exercis isin ing g th this is ri righ ght. t. With With rega regard rd to th the e mi mini ning ng in indu dust stry ry,, in 20 2007 07,, more more th than an 10 1000 00 work workers ers,, incl includ udin ing g tr trad ade e un unio ion n le lead ader ers, s, were were repor reporte ted d to ha have ve be been en di dism smis isse sed d from from a mini mining ng co comp mpan any y af afte terr part partic icip ipat atin ing g in a wo worke rkers rs’’ st stri rike ke in order order to di disp sput ute e th the e di disp spar arit ity y in wages wages be betw tween een fore foreig igne ners rs and and lo loca call staf stafff (Dai Daily ly New News, s, 200 2007 7). Al Alth thoug ough h th the e mini mining ng co comp mpan anie iess ha have ve clai claime med d th that at th they ey respe respect ct an and d prom promot ote e elow), w), includ including ing the right right to freedo freedom m of ass associ ociati ation, on, the evi eviden dence ce of employ employee ee gri grieva evance ncess raises raises labour lab our rights rights (see (see Sec Sectio tion n 6 belo quest que stio ions ns about about th the e re real alis isat atio ion n of su such ch righ rights ts in Ta Tanz nzan ania ia.. In fact fact,, th the e in inve vest stme ment nt prot protec ecti tion onss of offe fere red d by th the e go gover vernm nmen entt to attr attrac actt fo fore reig ign n in inve vest stor orss ha have ve co cons nstr trai aine ned d th the e gover governm nmen ent’ t’ss abil abilit ity y to call call gi gian antt TNCs TNCs to acco accoun untt fo forr th the e alle alleged ged br brea each ches es of  la labo bour ur ri righ ghts ts and and to pr prom omot ote e th the e prog progres ressi sive ve real realis isat atio ion n of huma human n ri righ ghts ts in th the e area area of labo labour ur law. law. Th Ther eref efor ore, e, th the e re real alis isat atio ion n of ba basi sicc huma human n ri righ ghts ts (a (ass st stip ipul ulat ated ed in Arti Articl cle e 25 of UDHR UDHR)) in Ta Tanz nzan ania ia ha hass remai remaine ned d a dr drea eam. m. The all allega egatio tion n of abu abuse se of human human rightsinvol rightsinvolvin ving g for foreig eign n com compan panies ies in the mining mining sector sector of Tan Tanzan zania ia has attrac attracted ted trench trenchant ant cri critic ticismfrom ismfrom NGO NGOs, s, academ academicsand icsand themedia themedia.. As wit with h oth other er TNCs, TNCs, theminin themining g compan companiesin iesin Tanzan Tanzania ia hav have e respon responded ded to this this cri critic ticism ism and pub public lic pres pressur sure e by exp expand anding ing the scope scope of their their cor corpora porate te social social res respon ponsib sibili ility ty report reports. s. However However,, whethe whetherr such such reports repo rts canimprove canimprove cor corpor porate ate acc accoun ountab tabili ility ty andpromot andpromote e the enjoym enjoyment ent of human human rig rights hts in Tanzan Tanzania ia rem remain ainss questio questionab nable le as the follow following ing sectio section n sho shows. ws. 6. Th The e scop scope e of co corp rpor orat ate e soci social al acco accoun unti ting ng and and hu huma man n ri righ ghts ts re repo port rtin ing g in Tanz Tanzan ania ia

In recen recentt ye year ars, s, majo majorr co corp rpor orat atio ions ns ha have ve be been en incr increa easi sing ngly ly clai claimi ming ng to be so soci cial ally ly re resp spon onsi sibl ble, e, an and d th they ey have have suppo support rted ed rjee ee,, 20 2007 07;; Co Coop oper er,, 20 2004 04;; Co Coop oper er & thei theirr clai claims ms by publi publish shin ing g le leng ngth thy y envi enviro ronm nmen enta tal, l, econ econom omic ic an and d soci social al re repo port rtss (Bane Banerj Owen Ow en,, 20 2007 07;; De Deeg egan an & Go Gord rdon on,, 19 1996 96;; De Demi mira rag, g, 20 2005 05;; De Deto toma masi si,, 20 2008 08;; Vo Voge gel, l, 20 2005 05). ). The The in incre creas asin ing g pres pressu sure re from from NGOs NGOs,, acad academ emic ics, s, trad trade e un unio ions ns an and d th the e me medi dia a has has pr prob oble lema mati tise sed d corp corpor orat ate e powe powerr and and th the e de decl clin inin ing g role role of th the e st stat ate, e, and, and, as a result res ult,, corpor corporati ations ons have have res respon ponded ded by emb embrac racing ing corpor corporate ate social social respon responsib sibili ility ty (CSR) (CSR) repo reporti rting ng (see Bela Belall & Ow Owen en,, 20 2007 07;; Islam Isla m & Dee Deega gan, n, 20 2010 10). ). Corpor Corporati ations ons also also inc includ lude e hum human an rights rights as one of their their acclai acclaimed med preoccu preoccupat pation ionss in their their CSR rep report ortss (see Rabet, Rabet, 200 2009 9). Si Simi mila larl rly, y, in resp respon onse se to loca locall and and glob global al pr pres essu sure res, s, th the e mi mini ning ng comp compan anie iess in Tanz Tanzan ania ia have have prod produc uced ed st stat atem emen ents ts cont contai aini ning ng pl pled edge gess to ac actt in a soci social ally ly resp respon onsi sibl ble e ma mann nner er and and st stat atin ing g th thei eirr comm commit itme ment nt to re resp spec ecti ting ng and and pr prom omot otin ing g hu huma man n ri righ ghts ts.. Th This is se sect ctio ion n exam examin ines es th the e CSR st stat atem emen ents ts of Barr Barric ick k Go Gold ld Corpo Corpora rati tion on (p (par aren entt co comp mpan any) y) as we well ll as that that of Buzw Buzwag agii Gold Gold Mi Mine ne,, th the e subs subsid idia iary ry co comp mpan any y in Tanz Tanzan ania ia fo forr 20 2003 03-2 -201 010 0 in or orde derr to dr draw aw atte attent ntio ion n to th the e clai claims ms made ma de on ac acco coun unta tabi bili lity ty for for huma human n righ rights ts issu issues es in th the e co coun untr try. y. In 20 2003 03,, Barr Barric ick k Go Gold ld Corpo Corpora rati tion on (pare (parent nt co comp mpan any) y) st stat ated ed:: ‘B ‘Bar arri rick ck has has a Co that sets sets ou outt hi high gh et ethi hica call st stan anda dard rdss with with re rega gard rd to such such is issu sues es as Code de of Bu Busi sine ness ss Co Cond nduc uctt an and d Ethi Ethics cs that dis disclo closur sure, e, ins inside iderr tradin trading g and doi doing ng busine business ss abroad abroad,, but whi which ch also also requ require iress adhere adherence nce to our enviro environme nmenta ntal, l, saf safety ety and and hu huma man n ri righ ghts ts re rela late ted d polic policie ies, s, su such ch as th thos ose e proh prohib ibit itin ing g di disc scri rimi mina nati tion on an and d ha hara rass ssme ment nt’’ (Barr Barrick ick Respo Responsibi nsibility lity 21 Report , 2003 2003 pp pp.. 2– 2–3) 3).. In its 2010 2010 Respo Barric ick k refe referr rred ed to it itss comm commit itme ment nt to hu huma man n ri righ ghts ts.. Thus Thus,, it st stat ated ed th that at,, as a mi mini ning ng Responsibi nsibility lity Repo Report  rt , Barr compan com pany y with with man many y operat operation ionss in deve develop loping ing countr countries ies,, ‘we have have a sig signifi nifican cantt res respon ponsib sibili ility ty for respec respectin ting g and uphold upholding ing hu huma man n ri righ ghts ts’’ (p. 65 65). ). The The Report st stat ated ed th that at th the e co comp mpan any y wa wass co comm mmit itte ted d to ad addr dres essi sing ng hu huma man n ri righ ghts ts is issu sues es::

20 21

http://www.icftu.org/www/pdf/corelabo http://www.icftu.org/ww w/pdf/corelabourstandards200 urstandards2006tanzania.pdf  6tanzania.pdf . http://www.barrick.com .barrick.com/Theme/Bar /Theme/Barrick/files/do rick/files/docs cs ehss/EHSS 2003 en.p en.pdf  df . http://www

 

102

S. La Lauw uwo, o, O. O.J. J. Ot Otusa usany nya a / Acco Accoun unti ting ng Foru Forum m 38 (2014)91–1 (2014)91–108 08

 Table 1 Overview Over view of the categori categories es subca subcategor tegories ies of CSR disc disclosu losures. res.

Categories

Subcategories

Community

Partnership Partnersh ip with NGOs NGOs,, inte internat rnationa ionall agenc agencies ies for reso resource urce devel developme opment nt Community development programmes •Charitable donations

 

• •

Environmental

Environmental stewardship Environmental Environmental Environment al management programmes •Comp Complian liance ce with envi environm ronmenta entall poli policies cies

 

• •

Employee

Generatin Gener ating g rewar rewarding ding and prod productiv uctive e empl employme oyment nt

 

• •

Nondiscrimination policy Nondiscrimination Respect Respe ct empl employee oyee huma human n righ rights ts •Rewa Reward rd and fair com compensa pensation tion •

Health Hea lth an and d saf safety ety

Provide prot Provide protecti ective ve equi equipmen pmentt to our emplo employees yees Provide Prov ide a safe work working ing envi environm ronment ent •Training

 

• •

Securi Sec urity ty and hum human an rig right htss

Compliance Complian ce to appli applicabl cable e laws and regul regulatio ations ns Respec Res pectt hum human an rig rights hts of all ind indivi ividua duals ls imp impact acted ed by our ope operat ration ionss

 

• •

Source: Buz Buzwa wagi gi res respon ponsib sibili ility ty Rep Report ort (20 (2010) 10) an and d http://www http://www.africanbarri .africanbarrickgold.com/ ckgold.com/corporate-r corporate-responsibility/ esponsibility/corporate-so corporate-social-respon cial-responsibility-char sibility-charter. ter. aspx.. aspx

‘Barri ‘Barrick’ ck’ss cor corpor porate ate hum human an rights rights com compli plianc ance e str struct ucture ure is also also being being enhanc enhanced, ed, aligne aligned d with with the Ruggie Ruggie Framew Framework ork,, to better bet ter detect detect and add addres resss potent potential ial hum human an rights rights abu abuses ses.. It wil willl inc includ lude e formal formal hum human an rig rights hts polici policies es and pro proced cedure ures, s, tr trai aini ning ng and and othe otherr el elem emen ents ts’’ (p (p.. 11 11). ).22 In the fol follow lowing ing two extrac extracts ts from from its2005 and2010 rep report orts, s, respec respectiv tively ely,, Bar Barric rick k claime claimed d to respec respectt fun fundam dament ental al human human rights: ‘Barrick’sCorporate Socia ‘Barrick’sCorporate Sociall Responsibil Responsibility ity Chart Charter er affirm affirmss our commi commitmentto tmentto observe observe the fundamentaltenets fundamentaltenets of human righ ri ghts ts.. Th This is comm commit itme ment nt is imbe imbedd dded ed in ou ourr co corp rpor orat ate e cult cultur ure e and and is alig aligne ned d with with the the pr prin inci cipl ples es in th the e De Decl clar arat atio ion n (Barr 2005 05,, p. 20 20). ).23 Barrick ick Respo Responsibi nsibility lity Report  Report 20 ‘We ma make ke an ac acti tive ve and and posi positi tive ve co cont ntri ribu buti tion on to huma human n ri righ ghts ts th thro rough ugh prog progra rams ms th that at pr prov ovid ide e acce access ss to ed educa ucati tion on,, clea clean n wate waterr and and he heal alth th serv servic ices es fo forr th the e co comm mmun unit itie iess neig neighb hbour ourin ing g our mi mine nes’ s’ (B (Bar arri rick ck Re Resp spon onsi sibi bili lity ty Re Repo port rt (2 (201 010, 0, p. 65 65). ). Barr Ba rric ick k al also so clai claime med d in it itss 20 2010 10 re repo port rt th that at it is co comm mmit itte ted d to prot protec ecti ting ng worke workers rs’’ hu huma man n ri righ ghts ts in th the e work work plac place: e: ‘We beli believ eve e th that at al alll ou ourr empl employ oyee eess ar are e to be tr trea eate ted d wi with th resp respec ectt and and di dign gnit ity. y. We are are co comm mmit itte ted d to pr provi ovidi ding ng equal equal oppo opport rtun unit ity y for for al alll of our our em empl ploy oyee eess and and co cont ntra ract ctor orss and and to preve prevent ntin ing g hu huma man n ri righ ghts ts in infr frin inge geme ment ntss upon upon our workworkforc force, e, in incl clud udin ing g al alll fo form rmss of forc forced ed and and comp compul ulso sory ry labo labour ur and and chil child d labo labour ur and and raci racial al and and ge gend nder er di disc scri rimi mina nati tion on’’ (Barri (Ba rrick ck Respon Responsib sibili ility ty Report Report,, 201 2010, 0, pp. 25–26) 25–26).. Thus, Barri Barrick ck Gold Corporation Corporation,, the parent parent company, company, provides provides more genera generall statement statementss aboutoverall group commi commitment tmentss to var variou iouss soc social ial issues issues inc includ luding ing hum human an rights rights.. On the other other hand, hand, the socialrespon socialresponsib sibili ility ty report reportss of the Buzwag Buzwagii Gol Gold d Mine Mine ught to sh show ow loca locall info inform rmat atio ion, n, bu butt un unli like ke ot othe herr mi mini ning ng co comp mpan anie iess in Ta Tanz nzan ania ia – wh whic ich h (a su subs bsid idia iary ry of Ba Barr rric ick k Gold Gold))24 ought publis pub lish h sep separa arate te soc social ial respon responsib sibili ility ty rep report ortss – the compan company y onl only y sho shows ws its commit commitmen mentt to social social res respon ponsib sibili ility ty as a cap captio tion n on theAfric theAfrica a Bar Barric rick k Gol Gold d web websit site. e. Tab Table le 1 belo elow w prov provide idess an ove overvi rview ew of thecateg thecategori ories es andsub-cate andsub-categori gories es of CSRdisclosu CSRdisclosures res in the Buz Buzwag wagi’s i’s soc social ial respon responsib sibili ility ty rep report ortss and on Afr Africa ica Bar Barric rick k Gol Gold’s d’s websit website. e. Tabl e 1 shows hows that that the soc social ial respon responsib sibili ility ty dis disclo closur sures es by Afr Africa ica Bar Barric rick k Gol Gold d were were mainly mainly in a narrat narrative ive for form, m, which which can Table be ca cate tego gori rise sed d un unde derr envi enviro ronm nmen ent, t, heal health th and and safe safety ty,, co comm mmun unit ity y re rela lati tion onss an and d se secur curit ity y an and d hu huma man n ri righ ghts ts.. Fo Forr ex exam ampl ple, e, it was sta stated ted tha that: t: ‘O ‘Ope pera rati ting ng in so some me ar area eass of Tanz Tanzan ania ia re requ quir ires es ABG, ABG, as we well ll as th the e Ta Tanz nzan ania ian n go gove vern rnme ment nt an and d th the e lo loca call co comm mmun unit itie ies, s, to deal deal wi with th la law w and and or orde derr iss issues ues Th Thes ese e chal challe leng nges es vary vary de depe pend ndin ing g on th the e loca locati tion on of th the e oper operat atio ion n and and ot othe herr circ circum umst stan ance ces. s. ABG ABG ha hass im impl plem emen ente ted, d, and and co cont ntin inue uess to iden identi tify fy,, alte altern rnat ativ ives es to mana manage ge secu securi rity ty is issu sues es in a ma mann nner er 25 th that at pl plac aces es at it itss he hear artt th the e safe safety ty and and se secur curit ity y of peop people le,, prop proper erty ty an and d as asse sets ts’. ’. . . .

22

http://barrickresponsibi lity.com/2010/en/pdf/Barric /en/pdf/Barrick k CSR 2010.p 2010.pdf  df . http://barrickresponsibility.com/2010 http://w ww.barri arrick.c ck.com/T om/Theme heme/Bar /Barrick rick/file /files/do s/docs cs ehss ehss/EHSS /EHSS 2005 en rev. rev.pdf  pdf . http://www.b 24 Buzw Buzwag agii Gold Gold Mine Mine be bega gan n extr extrac acti tion on of mine minera rall in May May 2009 2009 and and th the e first first resp respon onsi sibi bili lity ty re repo port rt was was publ publis ishe hed d in 20 2010 10 (http://www.barrick.com/ Theme/Barrick/files/resp Theme/Barr ick/files/responsibility-rep onsibility-reports/2010/Buz orts/2010/Buzwagi.pdf  wagi.pdf ). ). 25 http://www.africanbarri ckgold.com/corporate-r /corporate-responsibility/ esponsibility/security-and-h security-and-human-rights. uman-rights.aspx aspx.. http://www.africanbarrickgold.com 23

 

S. Lauwo, Lauwo, O. O.J. J. Ot Otus usan anya ya / Acco Accoun unti ting ng Foru Forum m 38 (2014 (2014)) 91– 91–108 108

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To emph emphas asis ise e it itss co comm mmit itme ment nt to th the e envi enviro ronm nmen ent, t, th the e co comp mpan any y also also st stat ated ed th that at:: ‘Volun ‘Vo luntar tary y Pri Princi nciple pless on Sec Securi urity ty and Hum Human an Rig Rights hts’’ are centra centrall to our securi security ty manage managemen mentt system system.. These These are a set of  guideline guidel iness by whi which ch com compan panies ies in the extrac extractiv tive e sector sector can mai mainta ntain in the saf safety ety and sec securi urity ty of their their operat operation ionss within within an operat operating ing framew framework ork tha thatt ens ensure uress respec respectt for human human rights rights and fun fundam dament ental al fre freedo edoms. ms. Our majori majority ty shareh sharehold older, er, Barric Bar rick k Gol Gold d Corp Corpora oratio tion, n, is a signat signatory ory par partic ticipa ipant. nt. Our securi security ty manage managemen mentt system system is aligne aligned d to this this commit commitmen mentt and to res respec pectin ting g human human rights rights and the fun fundam dament ental al freedo freedom m of indivi individua duals ls overall overall’. ’.26 In essenc essence, e, Buzwag Buzwagi’s i’s disclo disclosure suress emp emphas hasise ise the com compan pany’s y’s econom economic ic rol role e toward towardss variou variouss sta stakeh kehold olders ers.. Thus, Thus, althou although gh Ba Barri rrick ck Gold Gold Co Corpo rpora rati tion on,, th the e paren parentt comp compan any, y, like like ot othe herr TNCs TNCs in th the e Tanz Tanzan ania ian n mi mini ning ng se sect ctor or,, has has show shown n a co comm mmit itme ment nt to advanc adv ancing ing the variou variouss asp aspect ectss of hum human an rights rights by pub publis lishin hing g soc socialand ialand env enviro ironme nmenta ntall repo reports rts,, as yet there there is no inf inform ormati ation on abou aboutt ho how w the the term termss agre agreed ed on th the e MDA MDAs, s, su such ch as st stab abil ilis isat atio ion n clau clause ses, s, have have co cons nstr trai aine ned d th the e rea reali lisa sati tion on of hu huma man n ri righ ghts ts of  the the lo loca call ci citi tize zens ns.. In Inde deed ed,, th the e sy syst stem emic ic pres pressu sure re to incr increa ease se profi profits ts fo forr shar shareh ehol olde ders rs en ensh shri rine ned d in th the e co corp rpor orat ate e go gove vern rnan ance ce struct structureleavesopento ureleavesopento questio question n theclaims theclaims mad made e by compan companiesto iesto be act actingin ingin a social socially ly res respon ponsib sible le way wayandtobepromoting andtobepromoting huma human n righ rights ts.. In li line ne wi with th th the e MDAs MDAs,, the here re is no inf nfor orm mat atiion in an any y of the CS CSR R repo report rtss ab abou outt the amoun mountt of poll pollut utio ion n, enviro env ironme nmenta ntall degrad degradati ation, on, as wel welll as the relate related d hea health lth proble problems ms and other other risks, risks, associ associate ated d with with min mining ing activi activitie ties. s. Thus, Thus, despite despit e an acclaimed acclaimed commitmentto commitmentto human right rights, s, the CSR report reportss remain remain silent silent about employee employee grieva grievances, nces, enviro environment nmental al pollut pol lution ion,, and the mas masss dis disloc locati ations ons and dis displa placem cement entss which which hav have e occ occurre urred d in loc local al commun communiti ities. es. As a resu result lt,, the the po poor or work workin ing g co cond ndit itio ions ns,, th the e disc discri rimi mina nati tion on in th the e work workpl plac ace, e, and and th the e po poll llut utio ion n and and envi enviro ronm nmen enta tall degradationwhich degrad ationwhich prevai prevail, l, and whichdeprive Tanza Tanzanian nian citizens citizens of theirfundament theirfundamental al humanrights, have remained remained invisible invisible in CSR rep report orts. s. Ins Instea tead, d, the soc social ial report reporting ing of the mining mining com compan panies ies consis consists ts mer merely ely of vague vague and gen genera erall sta statem tement entss about about co corp rpor orat ate e comm commit itme ment ntss to em empl ploy oyee ees, s, loca locall comm commun unit itie ies, s, huma human n ri righ ghts ts and and th the e en envi viro ronm nmen ent. t. The The re repo port rtss pr prov ovid ide e no sp spec ecifi ificc prop propos osal alss abou aboutt ho how w th thes ese e co comm mmit itme ment ntss may may be achi achiev eved ed in prac practi tice ce and and no ev evid iden ence ce abou aboutt th the e ne nega gati tive ve soci social al and env enviro ironme nmenta ntall conseq consequen uences ces of min mining ing act activi ivitie tiess in Tan Tanzan zania, ia, whi which ch dep depriv rive e citize citizens ns of their their human human rig rights hts.. This This finding finding is con consis sisten tentt wit with h previo previous us studie studiess tha thatt hav have e cha challe llenge nged d soc social ial accoun accountin ting g to demons demonstra trate te its potent potential ial to bring bring about about a jus just, t, fer & Has Haslam lam,, 199 1997; 7; Gra Gray, y, Owe Owen, n, & Ada Adams, ms, 199 1996; 6; Spen Spence, ce, 200 2007, 7, equitab equi table le and fair fair soc societ iety, y, and prom promote ote human human rights rights (Gallho Gallhofer 2009). 2009 ). How However ever,, the ana analys lysis is just just und undert ertake aken n ind indica icates tes tha thatt one way fo forw rwar ard d to tr tran ansf sform orm th the e ef effe fect ct of CSR do docu cume ment ntss is to seek seek ways ways to have have them them in inco corp rpor orat ate e data data th that at they they curr curren entl tly y omit omit.. If th the e data data is be bein ing g gene genera rate ted, d, as we have have sh show own, n, th then en analysis analy sis may ne need ed to focu focuss on how how to requi require re th the e inse insert rtio ion n of such such data data in into to do docu cume ment nts, s, whic which h wi with th a CSRremit, CSRremit, are are clea clearl rly ya pr prop oper er ‘h ‘hom ome’ e’ for for them them.. Th This is may may require require wor work k to redraft redraft con contra tracts cts bef before ore the signin signing g sta stage ge under under pri princi nciple pless of transp transpare arency ncy and and equ equit ity, y, wh whic ich h TN TNCs Cs acce accept pt in ot othe herr do docu cume ment ntar ary y ar area eass (e.g. in Annu Annual al Re Repor ports ts an and d CSR repor reports ts). ). Th Ther ere e ha have ve be been en call callss for for alte altern rnat ativ ive e fo form rmss of acco accoun unti ting ng in orde orderr to ch chal alle leng nge e th the e do domi mina nant nt fo form rmss of econ econom omic ic or orga gani ni-sa sati tion on and and exp expos ose e abus abuses es of huma human n ri righ ghts ts (Dey, Dey, 20 2007 07;; Dey Dey,, Ru Russ ssel ell, l, & Th Thom omso son, n, 20 2008 08;; Ga Gall llho hofe fer, r, Ha Hasl slam am,, Ro Robe bert rts, s, & Mo Monk nk,, 2006 20 06;; Gi Gibs bson on,, Gr Gray ay,, La Lain ing, g, & De Dey, y, 20 2001 01). ). It has has been been ar argu gued ed th that at such such alte altern rnat ativ ive e re repo port rtin ing g shou should ld be un unde dert rtak aken en by civi civill so soci ciet ety y orga organi nisa sati tion onss in orde orderr to expo expose se th the e na narr rrow owne ness ss of cu curr rren entt CSR CSR re repo port rtin ing g (Dey Dey,, 20 2007 07;; Gi Gibs bson on et al al., ., 20 2001 01). ). As Spence (2009) has ar argu gued ed,, soci social al re repo port rtin ing g by civi civill so soci ciet ety y organ organis isat atio ions ns re repr pres esen ents ts ‘a much much more more subs substa tant ntiv ive e atte attemp mptt to expos expose e th the e co cont ntra radi dict ctio ions ns th that at pe perm rmea eate te curr curren entt mo mode dess of ec econ onom omic ic or orga gani nisa sati tion on’’ (p. (p. 20 206) 6).. In fact fact,, a nu numb mber er of NGOs NGOs have have be been en invol in volved ved in th this is pr prac acti tice ce.. Fo Forr inst instan ance ce,, Tax Tax Just Justic ice e Ne Netw twor ork, k, Chri Christ stia ian n Ai Aid d an and d Fr Frie iend ndss of th the e Eart Earth h ha have ve be been en at th the e fo fore refr fron ontt in proble problemat matisi ising ng corpor corporate ate power, power, par partic ticula ularly rly in deve develop loping ing countr countries ies..27 It ha hass be been en argu argued ed th that at alte altern rnat ativ ive e fo form rmss of CSR  reporti repo rting ng (suc (such h as shadow shadow acc accoun ounts) ts) have have the pot potent ential ial to reve reveal al con contra tradic dictio tions ns betwee between n what what com compan panies ies choose choose to report report Dey, y, 20 2007 07;; Gi Gibs bson on et al al., ., 20 2001 01). ). Such acc accoun ounts ts can be used used to highli highlight ght and pro proble blemat matise ise corpor corporate ate and and wh what at th they ey supp suppres resss (De acti activi viti ties es and and ca can n pro provi vide de ne new w insi insigh ghts ts into into th the e so soci cial al and and envi enviro ronm nmen enta tall im impa pact ct of co corp rpora orate te acti activi viti ties es on hu huma man n ri righ ghts ts.. Th This is mu must st be th the e ca case se.. Bu Butt at th the e same same time time th this is part partic icul ular ar ta tact ctic ic does does no nott me mean an th that at,, as a para parall llel el way way of gene genera rati ting ng a more more substa sub stanti ntial al commit commitmen mentt to hum human an rights rights,, effort effortss should should not con contin tinue ue to incorpo incorporat rate e wel well-f l-foun ounded ded data data (per (perhap hapss inc includ luding ing thatt genera tha generated ted by suc such h ext extern ernal al bod bodies ies)) int into o cor corpor porate ate docume documenta ntatio tion n its itself elf,, includ including ing such such regu regular larly ly issued issued docume documents nts as CSRss and ann CSR annual ual report reports. s. 7. Di Disc scus ussi sion on and and co conc nclu lusi sion on

The The ai aim m of th this is pa pape perr has has been been to co cont ntri ribu bute te to th the e em emer ergi ging ng re rese sear arch ch on corp corpor orat ate e acco accoun unta tabi bili lity ty and and hu huma man n ri righ ghts ts obli obliga gati tion onss from from a de deve velo lopi ping ng co coun untr try y co cont ntex ext. t. In th the e era era of co cont ntem empo pora rary ry gl glob obal alis isat atio ion, n, ma many ny de devel velop opin ing g co coun untr trie ies, s, su such ch as Tanzan Tanzania, ia, hav have e ent entered ered into into bilate bilateral ral and mul multil tilate ateral ral inv invest estmen mentt agr agreem eement entss with with transn transnati ationa onall cor corpor porati ations ons in order order to pr prom omot ote e fore foreig ign n in inve vest stme ment nt in th thei eirr co coun untr trie ies. s. It ha hass be been en ar argu gued ed th that at th the e te term rmss en ente tere red d in th the e in inve vest stme ment nt co cont ntra ract ctss have have been been sh shap apin ing g CSR and and ac acco coun unta tabi bili lity ty prac practi tice cess of th the e larg large e TN TNCs Cs’’ acti activi vity ty in th thes ese e co coun untr trie ies. s.

26

http://www.africanbarri .africanbarrickgold.com/ ckgold.com/corporate-r corporate-responsibility/ esponsibility/security-and-hum security-and-human-rights.a an-rights.aspx spx.. http://www ChristianAid Chris tianAid and Friends Friends of the Eart Earth h haveproduced‘altern haveproduced‘alternativ ative’ e’ acco accountsof untsof organisa organisation tionss suchas Shelland Exxon. Exxon. Frien Friends ds of the Earthhas, sinc since e 2002, Other Shell Shell Report  Report , whi Earth th Rep Repor orts ts been producin producing g an annual annual Other which ch docume documents nts Shell’ Shell’ss soc social ial an and d env enviro ironm nment ental al im impac pactt in variou variouss conte contexts xts.. Friend Friendss of the Ear (2002, (20 02, 200 2004, 4, 200 2005, 5, 200 2006) 6) engag ngage e th the e voic voices es of co comm mmun unit itie iess affe affect cted ed by Shel Shelll arou around nd the the worl world, d, in or orde derr to hi high ghli ligh ghtt the the co comp mpan any’ y’ss poor poor CS CSR R prac practi tice ces. s. They out outlin line e where where She Shell ll hasbeen fai failin ling g to comply comply wit with h gui guidel deline iness andinternat andinternation ional al hum human an rig rightslaws htslaws.. Fri Friend endss of theEarth produc produces es ‘shado ‘shadow w acc accoun ounts’ ts’ about oth other er organi organisat satio ions,incl ns,includi uding ng AngloGold AngloGold Ame Americ rica, a, Barcla Barclays ys andBP. These These report reportss tel telll a som somewh ewhat at differ differentstor entstory y from from that that por portra trayed yed in CSR rep repor orts ts (see also Christian-A Christian-Aid, id, 2004 2004). ). 27

 

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S. La Lauw uwo, o, O. O.J. J. Ot Otusa usany nya a / Acco Accoun unti ting ng Foru Forum m 38 (2014)91–1 (2014)91–108 08

Th The e pape paperr ha hass exam examin ined ed Ba Barr rric ick k Bu Buzwa zwagi gi’s ’s mine minera rall deve develo lopm pmen entt ag agre reem emen entt (MDA) (MDA) in Ta Tanz nzan ania ia (wh (whic ich h exe exemp mpli lifie fiess a ty typi pica call in inves vestm tmen entt ag agre reem emen entt in Ta Tanz nzan ania ia)) to unde underl rlin ine e some some of th the e ways ways in whic which h th the e te term rmss of th the e ag agre reem emen ents ts ha have ve acte acted d y Int Intern ernati ationa onal, l, 200 2003, 3, 200 2006; 6; Pla Platfo tform, rm, 201 2010; 0; Sik Sikka, ka, 201 2011 1). as cons constr trai aint ntss on th the e reali realisa sati tion on of huma human n righ rights ts (see (see also also Amnest Amnesty It ha hass be been en sh show own n th that at even even th thou ough gh ta tax x co conc nces essi sion onss and and inves investm tmen entt in ince cent ntiv ives es may may have have in incr crea ease sed d th the e in inflo flow w of FDI FDI and and increa inc reased sed TNC invest investmen mentt partic particula ularly rly in the Tan Tanzan zanian ian mining mining sector sector,, they they have have also also arg arguab uably ly con constr strain ained ed the realis realisati ation on of basi basicc huma human n ri righ ghts ts in the the coun countr try. y. In pa part rtic icul ular ar,, as st stab abil ilis isat atio ion n clau clause sess pr prio iori riti tise se fo fore reig ign n in inve vest stme ment nt pr prot otec ecti tion on over over conc concer erns ns ab abou outt soci social al ju just stic ice, e, th this is in turn turn cons constr trai ains ns th the e Tanz Tanzan ania ian n gove govern rnme ment nt’s ’s abil abilit ity y to enac enactt and and en enfo forc rce e laws laws and and regula reg ulatio tions ns to pro protec tectt and promote promote hum human an rights rights.. Thu Thus, s, despit despite e Tan Tanzan zania’ ia’ss int intern ernati ationa onall obl obliga igatio tions ns to respec respectt and protec protectt hu huma man n ri righ ghts ts (e.g. unde underr the the Un Univ iver ersa sall De Decl clar arat atio ion n of Hu Huma man n Righ Rights ts an and d ot othe herr in inte tern rnat atio iona nall conv conven enti tion ons, s, such such as th the e ILO 28 usines esss-re rela late ted d huma human n ri righ ghts ts abus abuses es ha have ve co cont ntin inue ued d to be de deep eply ly en entr tren ench ched ed in th the e co coun untr try y and and th this is has has convention), busin left left mu much ch to be desi desire red d by Tanz Tanzan ania ian n citi citizen zens. s. The paper paper hasshown tha thatt in res respon ponse se to recent recent and wor worldld-wid wide e dem demand andss for corpor corporate ate acc accoun ountab tabili ility, ty, mining mining compan companies ies in Tanz Tanzan ania ia ha have ve pr prod oduc uced ed volun volunta tary ry co code dess of co cond nduc uctt and and soci social al res respo pons nsib ibil ilit ity y re repo port rtss co cont ntai aini ning ng pr prom omis ises es to co cond nduc uctt th thei eirr bu busi sine ness ss acti activi viti ties es in a soci social ally ly res respo pons nsib ible le way. way. Yet, Yet, co corpo rpora rate te so soci cial al di disc sclo losu sures res of th the e sele select cted ed mi mini ning ng co comp mpan any y in Tanz Tanzan ania ia do no nott prov provid ide e any any info inform rmat atio ion n abou aboutt th the e pres presen ence ce of st stab abil ilis isat atio ion n clau clause sess or ot othe herr in inve vest stme ment nt in ince cent ntiv ives es,, an and d ho how w thes these e ma may y ha have ve im impa pact cted ed th the e loca locall popul populat atio ions ns.. Genera Generall lly, y, any any di disc sclo losu sure ress th that at are are made made te tend nd to co cons nsis istt of va vague gue an and d genera gen eralis lised ed sta statem tement entss wit with h no spe specifi cificc pro propos posalsabouthow alsabouthow human human rig rightsissue htsissuess might might actual actually ly be tac tackle kled d (se (see e Sikka, 2011 2011). ). Cons Consequ equen entl tly, y, in re rela lati tion on to th the e mini mining ng indu indust stry ry in Tanz Tanzan ania ia,, po poor or work workin ing g co cond ndit itio ions ns,, di disc scri rimi mina nati tion on in th the e workp workpla lace ce,, poll pollut utio ion n and and envi enviro ronm nmen enta tall degr degrad adat atio ion n an and d abus abuses es of huma human n ri righ ghts ts prev prevai ail, l, bu butt ha have ve re rema main ined ed in invi visi sibl ble e in CSR re repo port rts. s. Th Thus us,, ra rath ther er th than an serv servin ing g comm commun unit ity y or pu publ blic ic inte intere rest st as clai claime med d in th the e corp corpor orat ate e go gove vern rnan ance ce sy syst stem em and and acco accoun unti ting ng prof profes essi sion on on be beha half lf of th the e st stat ate, e, CSR rep repor orti ting ng has has tend tended ed to be co cons nstr trai aine ned d by th the e sy syst stem emic ic pres pressu sure ress an and d br broa oade derr powe powerr str struct uctures ures that that priori prioritis tise e sha shareh rehold older er wea wealth lth acc accumu umulat lation ion over over the rig rights hts and nee needs ds of a wide wide variet variety y of social social consti constitue tuents nts 1991 1). (see Puxty, Puxty, 199 Th The e pape paperr ha hass su sugg gges este ted d th that at a prio priori riti tisa sati tion on of pr priv ivat ate e pr profi ofits ts appe appear arss to ha have ve be been en acco accomp mpan anie ied d by marg margin inal alis isat atio ion n of huma human n ri righ ghts ts.. Alth Althou ough gh fin finan anci cial al an and d CSR CSR repo report rtss coul could d be us used ed to gi give ve vi visi sibi bili lity ty to soci social al co cons nseq eque uenc nces es,, th the e poss possib ibil iliiti ties es to da date te re rema main in mute muted d as co corpo rpora rati tion onss ar are e unde underr im imme mens nse e press pressur ure e fr from om mark market etss to prio priori riti tise se sh shor ortt-te term rm profit profits. s. Th The e entren ent renchm chment ent of privat private e int interes erests ts in acc accoun ountin ting, g, and in neo neolib libera erall sys system temss of corpor corporate ate governa governance nce,, con contin tinues ues to constr constrain ain thedevelopme thedevelo pment nt of forms forms of acc accoun ountin ting g andaccoun andaccountab tabili ility ty tha thatt cou could ld addres addresss broade broaderr soc socialconcer ialconcerns ns arisin arising g fro from m corpora corporate te Baxi, i, 200 2005; 5; Muc Muchli hlinsk nski, i, 201 2012 2). practi pra ctices ces (fo (forr exampl example, e, Bax Th Thus us,, lo looki oking ng forw forwar ard d to addr addres esss th the e ch chal alle leng nges es of co corp rpor orat ate e ac acco coun unta tabi bili lity ty an and d re resp spon onsi sibi bili lity ty to hu huma man n ri righ ghts ts is issu sues es,, there the re is a need need for changi changing ng the neo-li neo-liber beral al gov govern ernanc ance e mechan mechanism ismss and oth other er ins instit tituti utions ons that that hav have e repeate repeatedly dly reprodu reproduced ced social soc ial and env enviro ironme nmenta ntall inj injust ustice icess and hum human an rights rights abuses abuses (fo (forr exampl example, e, Much Muchlin linski ski,, 201 2012; 2; Sch Schere ererr & Pal Palazzo azzo,, 201 2011 1). To in incr crea ease se ac acco coun unta tabi bili lity ty of co comp mpan anie ies, s, th ther ere e is a need need to ex expa pand nd th the e comp compos osit itio ion n of Bo Boar ards ds of Di Dire rect ctor orss to in incl clud ude e ot othe herr sig signifi nifican cantt soc social ial consti constitue tuenci ncies, es, for ins instan tance ce rep repres resent entati atives ves of env enviro ironme nmenta ntall int intere erests sts,, emp employ loyee’s ee’s int intere erests sts,, or the int intereres ests ts of lo loca call co comm mmun unit ity y memb member ers. s. St Stak akeh ehol olde derr invo involv lvem emen entt in co corp rpor orat ate e go gove vern rnan ance ce mi migh ghtt crea create te a sp spac ace e th that at in incl clude ude a wide wide arra array y of stak stakeh ehol olde ders rs’’ co conc ncer erns ns an and d need needss in st stra rate tegi gicc bu busi sine ness ss de deci cisi sion ons, s, whic which h in tu turn rn co coul uld d faci facili lita tate te a shif shiftt from from th the e tr trad adit itio iona nall focu focuss on shor shortt-te term rm profi profits ts and and shar shareh ehol olde derr we weal alth th maxi maximi misa sati tion on.. At th the e same same ti time me co corp rpora orate te repor reporti ting ng,, as exp expre ress ssed ed in co conv nven enti tion onal al acco accoun unti ting ng-b -bas ased ed docum documen ents ts su such ch as an annu nual al rep repor orts ts an and d CSR CSR re repo port rts, s, sh shoul ould d arti articu cula late te th the e co comm mmit itme ment nt to soci social al,, envi environ ronme ment ntal al and and huma human n righ rights ts.. Al Alth thou ough gh me mere re di disc sclo losu sure re of hu huma man n ri righ ghts ts in info form rmat atio ion n ma may y not expose exp ose the ide ideolo ologic gical al int intere erests sts embedd embedded ed wit within hin the cor corpor porate ate governa governance nce system system (see Puxty, Puxty, 199 1991; 1; Sik Sikka, ka, 201 2011 1), it mig might ht ne neve vert rthe hele less ss op open en up a spac space e fo forr disc discus ussi sion on of huma human n righ rights ts ag agen enda dass and and so crea create te awar awaren enes ess, s, wh whic ich h coul could d be a dr driv iver er fo forr (2004) 04) sugges uggeste ted d th that at in addi additi tion on to insp inspir irin ing g le legi gisl slat atio ion n an and d NG NGO O acti activi vism sm,, di disc sclo losu sure re of hu huma man n ri righ ghts ts sociall chan socia change. ge. Sen (20 issu issues es ca can n al also so provok provoke e publ public ic disc discus ussi sion on,, appra apprais isal al and and advo advoca cacy cy (p. 32 320) 0).. Howev However er,, wi with thin in a Tanz Tanzan ania ian n co cont ntex ext, t, th ther ere e is a speci pecific fic ne need ed to em empo powe werr local ocal NGOs, GOs, as arg rgua uab bly the hey y do not ye yett ha have ve the po powe werr to mobi mobili lise se pres presssure ure wi witth res respe pect ct to Thus us,, th the e su such ch issu issues es as en enha hanc nced ed corp corpor orat ate e disc disclo losu sure re,, publ public ic ac acco coun unta tabi bili lity ty and and hu huma man n ri righ ghts ts is issu sues es in th the e co coun untr try. y.29 Th UN thro throug ugh h it itss hu huma man n ri righ ghts ts fram framew ewor ork k can can play play a role role in en enab abli ling ng and and empo empowe weri ring ng loca locall NGOs NGOs and and ot othe herr civi civill so soci ciet ety y organi org anisat sation ionss within within a develo developin ping g cou countr ntry y contex context, t, and in Tan Tanzan zania ia in partic particula ular. r. More Mo reov over er,, it sho houl uld d als lso o be made made obl obligat igator ory y fo forr MDAs MDAs and and ot oth her inv nves esttme ment nt ag agre reem emen ents ts made made wi witth th the e Tanz Tanzan ania ian n gove govern rnme ment nt to cont contai ain n te term rmss layi laying ng down down ob obli liga gati tion onss wi with th resp respec ectt to the the prot protec ecti tion on and and prom promot otio ion n of hu huma man n ri righ ghts ts.. It woul wo uld d also also be in th the e publ publiic int nter eres estt if inve invesstm tmen entt co cont ntra ract ctss we were re di disscus cusse sed d in parl parliiam amen entt and mad made avai availa labl ble e for open open publ public ic scru scruti tiny ny as pa part rt of th the e acco accoun unta tabi bili lity ty deba debate te.. Th This is woul would d enab enable le peop people le to bu buil ild d alte altern rnat ativ ive e fo form rmss of acco accoun unti ting ng an and d accountabi accou ntability lity (e.g. shad shadow ow acco accoun unts ts), ), wh whic ich h co coul uld d cr crea eate te gr grea eate terr vi visi sibi bili lity ty of th the e hu huma man n ri righ ghts ts pred predic icam amen ents ts in Ta Tanz nzan ania ia.. As dis discu cussse sed d earl earliier (on (on page page 27) 27) acc ccou ount ntiing aca cade dem mics ics ca can n, thr hrou ough gh work workin ing g clos closel ely y wi with th NGOs NGOs,, play play a pivo pivota tall ro rolle in critic critical al int interve erventi ntions ons,, by cha challe llengi nging ng neolib neolibera erall sys system temss of cor corpor porate ate governa governance nce and exa examin mining ing the soc social ial con conseq sequen uences ces of 

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Th The e IL ILO O Decl Declar arat atio ion n on Fu Fund ndam amen enta tall Pr Prin inci cipl ples es and and Ri Righ ghts ts at Wo Work rk (1 (199 998) 8) prov provid ides es the the co core re labo labour ur stan standa dard rdss that that aim aim to: to: (1 (1)) el elim imin inat ate e all all form formss of  forced or com compul pulsor sory y labou labour; r; (2) eff effect ective ively ly abo abolis lish h child child labour labour;; (3) elimin eliminate ate dis discr crimi iminat natio ion n in res respec pectt of emp employ loymen mentt and occup occupati ation on;; and (4) ens ensure ure the fre freedo edom m of ass associ ociati ation on an and d the rig right ht to colle collecti ctive ve bargai bargainin ning g (www.ilo.org www.ilo.org). ). 29 Due Due to th the e le leve vell and and sc scal ale e of po pove vert rty y in Tanz Tanzan ania ia,, a si sign gnifi ifica cant nt nu numb mber er of NGOs NGOs have have ch chos osen en to fo focu cuss mo more re on soci social al serv servic ice e de deli live very ry and and pove povert rty y Shivji, ji, 2004 2004). ). reduction reduc tion (Shiv

 

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increasing corpor increasing corporate ate power,while also developing developing alter alternativ native e formsof accoun accounting tingand and accou accountabi ntability.Accounting lity.Accountingschol scholars ars in particular parti cular may engage engage wit with h the debate debate of corpor corporate ate acc accoun ountab tabili ility ty and hum human an rig rights hts,, which which cou could ld hel help p to push push human human rig rights hts Gallho lhofer fer & agen agenda dass fo forw rwar ard d and and al also so advo advoca cate te fo forr inte interv rven enti tion onss su such ch as th the e re refo form rm of co corp rpor orat ate e laws laws and and re regul gulat atio ions ns (s (see ee Gal Haslam Has lam,, 200 2003 3). There The re is no reason reason why human human rights rights obl obliga igatio tions ns can cannot not be par partt of the bindin binding g legal legal req require uiremen ments ts for corpor corporati ations ons rather rather than just a duty of care re.. In this respect there is a need to tough ghe en up local regul ula ations in Ta Tan nzania in order that more pres pressu sure re is pl plac aced ed on the the mi mini ning ng comp compan anie iess an and d ot othe herr TN TNCs Cs to disc discha harg rge e th thei eirr hu huma man n ri righ ghts ts ob obli liga gati tion onss to loca locall citi citize zens ns.. As part part of suc uch h a proc proces esss, the the go gove vern rnme men nt of Ta Tanz nza ania nia wo woul uld d need need to revi review ew the Co Comp mpan any y Act Act 20 2002 02 to impo imposse a du duty ty on co comp mpan anie iess to be ac acco coun unta tabl ble e fo forr huma human n righ rights ts issu issues es.. The The ma majo jorr chal challe leng nge e is to de deve velo lop p an appr approp opri riat ate e mi mix x of st stro rong nger er and and mo more re vi visi sibl ble e re regul gulat atory ory co cont ntro rol, l, as well well as effe effect ctiv ive e enfo enforc rcem emen entt mech mechan anis isms ms,, fo forr maki making ng tr tran ansn snat atio iona nall co corp rpor orat atio ions ns acco accoun unta tabl ble e for for huma human n ri righ ghts ts in deve develo lopi ping ng co coun untr trie iess such such as Ta Tanz nzan ania ia.. It is appa appare rent nt th that at th the e Tanz Tanzan ania ian n go gove vern rnme ment nt is co cons nstr trai aine ned d by stab stabil ilis isat atio ion n clau clause sess an and d ot othe herr inve invest stme ment nt guar guaran ante tees es;; it ne need edss fo fore reig ign n in inve vest stme ment ntss to prov provid ide e th the e re revvenue enuess fo forr soci socioo-ec econ onom omic ic deve develo lopm pmen ent, t, and and unde unders rsta tand ndss th that at to cu curt rtai aill in inve vest stme ment ntss co comp mple lete tely ly mi migh ghtt ha have ve a di disa sast stro rous us effe effect ct.. Where Whereas as stro strong ng re regul gulat atio ions ns and and st stri rict ct enfo enforce rceme ment nt and and sa sanc ncti tion on me mech chan anis isms ms may may have have th the e po pote tent ntia iall to pr prom omot ote e and and pr prot otec ectt huma human n ri righ ghts ts in developed coun countr trie ies, s, th the e pr pros ospe pect ct of su such ch me meas asur ures es be bein ing g in intr trod oduc uced ed in a deve develo lopi ping ng coun coun-this is re resp spec ectt try try su such ch as Ta Tanz nzan ania ia,, as th the e evid eviden ence ce to date date as well well as th that at pr pres esen entted in th this is pape paperr sh show ows, s, is un unli like kely ly..30 In th th the e go gove vern rnme ment nt of Tanz Tanzan ania ia like like th that at of ma many ny ot othe herr deve develo lopi ping ng coun countr trie iess is on th the e ‘h ‘hor orns ns of a di dile lemm mma’ a’ th that at di diff ffer erss from from th that at of de deve velo lope pedd-ec econ onom omy y st stat ates es.. As said said ab abov ove, e, the the need need to at attr trac actt fo fore reig ign n in inve vest stme ment nt to st stim imul ulat ate e th the e ec econ onom omy y and and alle allevi viat ate e po pove vert rty y ra rare rely ly go goes es easi easily ly hand hand in hand hand with with th the e need need to pr prot otec ectt th the e soci socioo-ec econ onom omic ic ri righ ghts ts and and en enti titl tlem emen ents ts of  citizens. Th Ther eref efor ore, e, th this is stud study y enco encour urag ages es furt furthe herr inte interd rdis isci cipl plin inar ary y rese resear arch ch to be co cond nduc ucte ted d on micr microo-el elem emen ents ts of co corp rpor orat ate e acco accoun unta tabi bili lity ty an and d hu huma man n ri righ ghts ts ob obli liga gati tion ons. s. It also also urges urges acco accoun unti ting ng re rese sear arch ch to li link nk wi with th ot othe herr fo form rmss of acad academ emic ic work work,, whic wh ich h seek seek to un unde ders rsta tand nd an and d cr crit itiq ique ue th the e inte intera ract ctio ions ns betw betwee een n corp corpor orat ate e powe powerr and and hu huma man n ri righ ghts ts,, to of offe ferr a re refle flect ctio ion n on th the e poss possib ibil ilit ity y of re refo form rmin ing g th the e natu nature re of a co corp rpor orat atio ion. n. Inso Insofa farr as it do does es so so,, fut future ure re rese sear arch ch may may mak make e contri contribut bution ionss to and and advo advoca cate te for for re refo form rmss of neoneo-li libe bera rall co corp rpor orat ate e go gove vern rnan ance ce st stru ruct ctur ures es in incl clud udin ing g laws laws an and d re regul gulat atio ions ns,, whic which h woul would d no nott only only be im impo port rtan antt for for th the e futu future ress of Tanz Tanzan ania ian n citi citizen zens, s, bu butt fo forr mu much ch wi wide derr gr group oupss of peop people le in th the e wo worl rld d who who suff suffer er si simi mila larr human hum an rights rights abuse. abuse.  Acknowledgements  Acknowled gements

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The study study apprec appreciat iates es why why and how suc such h comm commitm itment entss are not ma made de by states states suc such h as Tanza Tanzania nia..

 

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