The Unfreezing of Iran: Economic Opportunities for Georgia

In the aftermath of the Iran deal, there has been considerable speculation about the likely impact of the deal on the Caucasus. In Georgia, there has been speculation about the degree to which Iran could drive economic growth through development of the energy sector by providing a new market for Georgian exports or by becoming a source of FDI or tourists. This article looks at each of these areas and concludes that none of them are likely to be major drivers of growth in the short to medium term

How a large project was halted by the lack of a social Licence to operate:Testing the applicability of the Thomson and Boutilier model

We explore why having a Social Licence to Operate (SLO) is essential for large projects. We analyse the Khudoni Hydroelectric Power Plant in the Svaneti region of Georgia, which was halted in 2013 after much social protest. We assess why the project lacked a SLO and what lessons can be learnt from this experience. Using the Thomson and Boutilier model of SLO as our analytical framework, we elaborate its key elements legitimacy, credibility and trust in the context of dam and hydropower projects and assess where the Khudoni project failed. We conclude that the project lacked legitimacy, with local communities not seeing any social justification for the project. The credibility of the project and proponent was weak amongst the local population, and trust was absent at all phases of the project. We conclude that the concept of social licence to operate has the potential to encourage project proponents to consider and implement activities which will lead to better outcomes for all parties. We believe there is a strong business case for companies to take the concept seriously. Improving social performance will assist projects in gaining a social licence to operate and grow

On legitimacy in impact assessment: An epistemologically-based conceptualisation

Impact assessment (IA) is carried out as an ex ante process to inform decision-making. It includes requirements for engagement with stakeholders (including the public) regarding actions proposed by a proponent. A key issue with the various stakeholders involved is the perceived legitimacy of the IA, which can have implications both for the reputation of the proponent, and the likelihood of conflict over the decision. But the understanding of legitimacy in the IA literature has changed over time in line with an ontological shift from positivism (that scientifically generated information leads to better informed decisions) to the post-positivist acknowledgement of the limitations of scientific method whereby assumptions must be subject to transparency, deliberation and openness. This has led to an epistemological shift towards greater subjectivism which, we suggest, has created new opportunities (which have been realised in political decision-making) to subvert knowledge through the increased use of the Internet and social media. To address the potential for such subversion of legitimacy, we seek to conceptualise legitimacy in the IA context through framing IA around a critical realist ontology and a reliabilist virtue epistemology. This allows us to identify ‘knowledge legitimacy’ as an equally important component of IA legitimacy along with organisational legitimacy. We conceptualise knowledge legitimacy through literature review drawing on rich understandings of knowledge from IA and other fields of research in order to develop a four-dimensional typology. This includes the dimensions of: knowledge accuracy; knowledge restriction; knowledge diffusion; and knowledge spectrum. This is the first theoretically grounded attempt to understand legitimacy in IA. It is hoped that it will provoke discussion in the IA community to further advance theoretical understandings of IA and legitimacy of practice

The Emergence of the ‘Social Licence to Operate’ in the Extractive Industries?

The ‘social licence to operate’ (SLO) is a construct that has potential to transform the mining sector internationally. The SLO is increasing in importance because it can reduce all risks during the energy project life-cycle that are detrimental to the success of energy projects. This paper analyses how SLO's are at first perceived by interdisciplinary energy scholars before examining the legal nature of an SLO and looking at the effectiveness of such an agreement from the perspectives of both the energy company and the local community. In essence, this research seeks to address what is the legal basis of an SLO. Further, an original case study on Columbia is presented which highlights the SLO in action and its transformative effect. The paper also engages in new debates around the relationship of SLOs to related energy concepts such as the energy justice and environmental impact statements, which are also vital to energy infrastructure developmen