Benefit Sharing in the Arctic: A Systematic View

Abstract

Benefit sharing is a key concept for sustainable development in communities affected by the extractive industry. In the Arctic, where extractive activities have been growing, a comprehensive and systematic understanding of benefit sharing frameworks is especially critical. The goal of this paper is to develop a synthesis and advance the theory of benefit sharing frameworks in the Arctic. Based on previously published research, a review of literature, a desktop analysis of national legislation, as well as by capitalizing on the original case studies, this paper analyzes benefit sharing arrangements and develops the typology of benefit sharing regimes in the Arctic. It also discusses the examples of various regimes in Russia, Alaska, and Canada. Each regime is described by a combination of principles, modes, mechanisms, and scales of benefit sharing. Although not exhaustive or entirely comprehensive, this systematization and proposed typologies appear to be useful for streamlining the analysis and improving understanding of benefit sharing in the extractive sector. The paper has not identified an ideal benefit sharing regime in the Arctic, but revealed the advantages and pitfalls of different existing arrangements. In the future, the best regimes –in respect to sustainable development would support the transition from benefit sharing to benefit co-management.

Mobilizing Benefit-Sharing Through Transportation Infrastructure: Informal Roads, Extractive Industries and Benefit-Sharing in the Irkutsk Oil and Gas Region, Russia

“…This paper has applied benefit-sharing mechanisms classification framework developed by Petrov and Tysiachniuk [2] to informal roads. The negotiated, semi-formal and trickle-down benefits were identified and illustrated by case studies.…”

“…The residents make requests that can be described rather as a plea than a demand (cf. [2]). These relationships solidify uneven power relationships between companies and communities and propagate dependency and paternalism.…”

“…Benefit-sharing can be defined as the distribution of monetary and non-monetary benefits generated through resource-extraction activities [1,2]. Benefit-sharing is closely related to the notions of Corporate Social Responsibility (CSR) and Social License to Operate (SLO) and recognizes the right of local communities to receive a share of profits received by a resource company [2]. The concept highlights the necessity to share these benefits with the local stake-and rightsholders who live near to the resource extraction areas and provide access to the resource for companies.…”

“…Benefit-sharing aims to improve the local communities' wellbeing and promotes fate-control and self-reliance [3]. Benefit-sharing can be implemented by the state by means of sovereign wealth funds, land lease agreements, social investments or by extractive companies' own initiatives, such as philanthropic, (supporting cultural festivities, revitalization of languages or sports), investments in infrastructure, education, training and technology, as well as in new jobs creation [2,4].…”

“…Benefit-sharing regimes that characterize the relationships between extractive companies and local communities rely on various mechanisms of benefit implementation. These mechanisms are financial, legal and procedural ways used to operationalize benefit-sharing [2]. In the literature, four primary mechanisms prevalent in the Arctic have been identified: streamlined (mandated), negotiated, semi-formal and "trickle-down".…”