Intergenerational Equity is essential for the survival of civilization
Natural resources, including minerals, are a shared inheritance. It is our duty to ensure future generations inherit at least as much as we did. If we fulfill our duty, we may enjoy the fruits of our inheritance. A loss is a loss to all of us and all our future generations.
If each generation consumes a tiny part of the inheritance, soon there will be nothing left and civilization will cease. This day is visible.
The five principles for managing our shared mineral inheritance are:
1. The state is a trustee of natural resources for the people and especially future generations (Public Trust Doctrine).
2. As we have inherited the minerals, we are simply custodians and must pass them on to future generations (Inter-generational Equity Principle).
Consider the example of inherited family gold. If the family decide to keep the gold as it is, they ensure the gold remains to be passed onto future generations. However they must safeguard it against theft, which is both a headache and a cost, while the gold produces no income. Alternatively, if they decide to sell the gold and invest the proceeds in say land for example, they and their future generations can benefit from the income of the land as long as it is well maintained. The crucial point is that if the gold were to be lost or the investments mismanaged, the loss of capital would be permanent for all future generations.
3. If we mine and sell our mineral resources, we must ensure zero loss, ie. capture of the full economic rent (sale price minus cost of extraction, cost including reasonable profit for miner). Any loss is a loss to all of us and our future generations.
4. Like Norway, all the proceeds from our minerals must be saved in a Future Generations Fund, with the state as trustee for the people and especially future generations.
5. We own the minerals, we own the fund, we own the income if the fund. Distribute the real income (after inflation) from the Future Generations Fund only a commons dividend or a Citizen’s Dividend, equally to all as a right of ownership.
Our Campaigns in Mining / Extractives
2. India's National Mineral Policy 2019. Prior to the review of the policy, we had some wins in other arms of the national government. The final policy declares "Natural resources, including minerals, are a shared inheritance where the state is the trustee on behalf of the people to ensure that future generations receive the benefit of inheritance. State Governments will endeavour to ensure that the full value of the extracted minerals is received by the State." Some other aspects of fully implementing intergenerational equity are also included.
3. Whose Mine Is It Anyway? A crucial error in international government accounting standards must be corrected. This is to force governments to treat mining as the sale of inherited wealth, not "windfall revenue". Here's the impact of the error. And how it strongly incentivizes new extraction in the Arctic Refuge, Alaska, USA.
Campaign targets are the IMF's Government Finance Statistics Manual (GFSM) 2014, and the standards of the International Public Sector Accountings Standards Board (IPSASB). The IPSASB has put a new IPSAS on Natural Resources as its top priority for its Work Plan 2019-2023.
Zero Loss - evidence, and what is needed
Recent demand in Portugal: Intergenerational equity in lithium extraction: a state priority
Ask your government to implement intergenerational equity, especially the 5 principles
Ask the IMF to fix the error in their Government Finance Statistics Manual
Ask the International Seabed Authority to implement intergenerational equity, especially the 5 principles