[Congressional Record (Bound Edition), Volume 156 (2010), Part 4]
[Senate]
[Pages 5799-5800]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        NATURAL RESOURCE CHARTER

  Mr. CARDIN. Mr. President, I am pleased to report to you and my 
colleagues on the excellent work that is being done to help developing 
countries capitalize on their natural resource wealth. This unique 
initiative is called the Natural Resource Charter, and it is designed 
to give countries the tools and knowledge they need to develop their 
natural resources for the good of their citizens in a transparent and 
accountable manner. As a collective work coordinated by established 
academics and development experts, the charter provides a set of policy 
principles for governments on the successful translation of natural 
resource wealth into fair and sustainable development.
  At the U.S. Helsinki Commission we monitor 56 countries, including 
the United States, with the mandate to ensure compliance to commitments 
made under the Helsinki Final Act with focus on three dimensions: 
security, economics and the environment, and human rights.
  The management of extractive industries has broad implications 
covering all three dimensions of the Helsinki process. We know that 
oil, gas, and mining are potential sources of conflict and their supply 
has a direct impact on our national security. The often negative 
economic consequences for resource rich countries are well documented 
and we see constant reminders of the environmental impact of extraction 
both at home and abroad. Finally, the resultant degradation of human 
rights in countries that are corrupted by resource wealth is a real 
concern that we must address.
  When the charter was launched last year, I was struck by how far we 
have come in terms of bringing the difficult conversation on extractive 
industries into the lexicon of world leaders. Only a few short years 
ago, the word ``transparency'' was not used in the same sentence with 
oil, gas or mining revenue. After the launch of the Extractive 
Industries Transparency Initiative in 2002, we have seen a major shift 
in attitude. This was followed by G8 and G20 statements in support of 
greater revenue transparency as a means of achieving greater economic 
growth in developing countries.
  But it is clear that given the challenge ahead, more than statements 
are needed. The Natural Resource Charter is a concrete and practical 
next step in the right direction.
  Economists have found that many of the resource-rich countries of the 
world today have fared notably worse than their neighbors economically 
and politically, despite the positive opportunities granted by resource 
wealth. The misuse of extractive industry revenues has often mitigated 
the benefits of such mineral wealth for citizens of developing nations; 
in many cases the resources acting instead as a source of severe 
economic and social instability.
  In addressing the factors and providing solutions for such 
difficulties, the Natural Resource Charter aims to be a global public 
resource for informed, transparent decisionmaking regarding extractive 
industry management.
  The charter's overarching philosophy is that development of natural 
resources should be designed to secure maximum benefit for the citizens 
of the host country. To this end, its dialogue includes a special focus 
on the role of informed public oversight through transparency measures 
such as

[[Page 5800]]

EITI in establishing the legitimacy of resource decisions and 
attracting foreign investment. On fiscal issues, the charter presents 
guidelines for the systematic reinvestment of resource revenues in 
national infrastructure and human capital with the goal of diminishing 
effects of resource price volatility and ensuring long-term economic 
growth.
  This week the commission will hold a public briefing on the Natural 
Resource Charter and I am pleased to say that there was a candid 
conversation between the audience and the panel that revealed much 
about how the charter could be used to promote human rights and good 
governance. The briefing also addressed ways that U.S. support of 
democratic and economically sensible extractive industry standards 
could have a powerful effect in securing the welfare and freedoms of 
citizens in resource-rich countries. In particular, it was noted that 
the Energy Security Through Transparency Act, S. 1700, a bipartisan 
bill I introduced with my colleague Senator Lugar and 10 other 
colleagues is consistent with the principles set out in the Natural 
Resource Charter.
  I look forward to working with my colleagues to ensure our continued 
progress on these issues.

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