High-Value Natural Resources and Transparency: Accounting for Revenues and Governance

Author(s):  
Levon Epremian ◽  
Päivi Lujala ◽  
Carl Bruch

The increase in demand and prices of most high-value natural resources over the past five decades has resulted in massive income gains for resource-abundant countries. Paradoxically, many of these countries have suffered from slow economic growth, weak political institutions, and violent conflict. To combat corruption, increase accountability, and promote government effectiveness, the international community and advocacy groups have been promoting transparency as the remedy to misappropriation and mismanagement of revenues. Consequently, advocates, officials, and diplomats increasingly focus on transparency as the means to better manage revenues from high-value natural resources in developing countries. The linkages between transparency, accountability, and management of revenues from high-value natural resources require careful examination. This article provides a review of the literature on transparency and accountability in the context of natural resource revenue management, discusses how transparency is conceptualized and understood to function in this context, and assesses the existing evidence for the proposition that increased transparency leads to more accountability and improved natural resource governance. The article concludes with a discussion on the evaluation of transparency policy initiatives.

Author(s):  
Gloria Kembabazi ◽  
John Osapiri

This paper examines the legal foundations of taxation of minerals examining legal provisions concerning natural resources generally and, mining as a sector - with oil and gas as one of the emerging sub-sectors for regulation. The paper examines the challenges and offers potential solutions with a view that economic policymaking is critical and the legal and policy framework must be critically structured and carefully implemented to allow for maximum government revenue and positive natural resource governance.


2017 ◽  
Vol 13 (2) ◽  
pp. 32-52
Author(s):  
Karolina Werner

This paper analyzes the natural resources governance framework in Zambia. The research is the result of a broader project on natural resource governance with interviews performed in a number of countries in sub-Saharan Africa. The goal of the paper is to identify the gaps and inconsistencies within the Zambian natural resource policy framework, in an effort to broaden the understanding of how governance of the sector may be streamlined and optimized. It further offers suggestions on how other sectors, such as education, may be central to the development of a more successful natural resource framework. The paper focuses on Zambia as a country with a long history of mining and a relatively stable political environment, yet one in which tensions between government and the private sector remain, and policies on natural resource extraction which have been particularly volatile in recent years.


2011 ◽  
Vol 44 (6) ◽  
pp. 639-661 ◽  
Author(s):  
Nita Rudra ◽  
Nathan M. Jensen

Much political science scholarship, including important work in this journal, has explored the implications of natural resource endowments— particularly oil and other highly valuable export commodities—on political and economic outcomes. Although the first wave of literature emphasized the negative effects of these resources, more recent work emphasizes how domestic institutions can condition the relationship, sometimes leading to positive effects. In this special issue, the authors expand this literature in two important ways. First, they renew attention on the international dimensions of this relationship, exploring how trade, migration, foreign investment, and other global forces influence the effects these resources have on countries. Second, they link the study of the globalization—natural resources nexus to broader debates in international and comparative political economy, such as how domestic institutions shape the impact of globalization and how economic factors affect the political survival of regimes and individual leaders. The five studies in this collection use a variety of research methodologies (formal models, country case studies, and large- N empirical analyses) to examine several different international economic factors linking resources with politics. The findings provide new insights into the politics of natural resources, expand the traditional focus of the resource curse literature to include other natural resources (e.g., water), and shed light on whether globalization has the ability to improve natural resource governance around the world.


2018 ◽  
Vol 325 ◽  
pp. 257-272
Author(s):  
Paiman Ahmad

In the natural resource governance, corruption and transparency both got high attraction from the public and worldwide institutions, which focus on transparency, corruption and good governance. Tackling corruption in extractive industry in countries endowed with natural resources is the core concern for the people, yet governments in most developing countries are not concerned about being prepared for the transparency and accountability initiatives for creating open governments. This study offers a review existing literature aiming at evaluating the impact of E-Government for transparency and accountability in the extractive industry sector in Iraq since 2003. In fact, the natural resource governance needs good governance principles to be enforced for improving transparency and accountability between the government and the companies during, licensing, exploration, contracting, extraction, revenue generation and the allocation process of the revenues. While, E- Governance has got international attention from developed and developing countries, the initiative started with Kimberly Process Certification Scheme (KPCS), followed by the Global Witness/ Publish What You Pay Coalition (PWYP), with the recent emergence of the Extractive Industries Transparency Initiative (EITI). Many resource abundant countries such as Iraq, Nigeria, Venezuela, Angola, etc, underperform in terms of socio-economic development, those countries face the ‘the resource curse’ as an economic phenomenon, which is interlinked to the politics of resource governance. Indeed, corruption and transparency as the main principles of pure governance in natural resources set the picture of government for being accountable for his populations. This study aims in answering this thesis: In the absence of E-Government, corruption hampered the revenues in Iraq similarly as many other rentier states


2012 ◽  
Vol 19 (1) ◽  
pp. 184 ◽  
Author(s):  
Astrid Meilasari-Sugiana

Theorists of Common Pool Resources (CPR) management suggest that distribution and devolution of power can localize consequential decisions over natural resources. The Government of Indonesia has encouraged the collective management of natural resources through self-governed local communes. It has also argued for consensual decision making over the use, allocation and distribution of natural resources at the village, district and regency level. Devolution has not, however, given most people access to strategic and structural power to decide on natural resource governance. Two cases in South Sulawesi are discussed. In the case of the hunting of Sinjai's bats, devolution for collective governance was marked by contention, unfettered competition, and resource overutilization. Management of Sinjai's coastal mangroves, however, suggests that social institutions can stimulate social sensibility, encourage attachment to the natural landscape, and instigate collective responsibilities. Community members acted in a way that benefited the overall good, avowing individual rights. Barriers and enablers to sustainable natural resource governance emerged from the local context in each case, including assertion of private ownership of mangrove plots; they did not emerge as a consequence of distribution and devolution of power alone, as CPR theory suggests.Keywords: Devolution, collective action, reciprocity, ecological sensibility, mangroves, South Sulawesi


2018 ◽  
Vol 7 (1) ◽  
pp. 213
Author(s):  
Z. Adangor

The current regime of centralized natural resource governance poses one of the greatest threats to the stability of the Federation of Nigeria. The centralization of natural resource ownership and government is perceived by the ethnic minorities of the oil-producing Niger Delta Region of Nigeria as a tool of ethnic domination by the majority ethnic groups. Given the centrality of natural resources to the growth of Nigeria’s economy and the desirability of maintaining a stable federation, this research seeks to propose an equitable regime of natural resource governance that recognises and accommodates both national and regional interest in Nigeria’s abundant natural resources and thereby strengthens federal stability. This paper which adopts analytical and comparative research methodologies, argues that the current regime of natural resource governance in Nigeria is divisive and that only the participation of the federating states in the governance of natural resources exploited within their respective geographic boundaries would conduce to peace and inter-regional harmony and enhance the capacities of the federating states to develop at their varying speed according to the dreams of the Founding Fathers of Nigerian federalism. The paper concludes by recommending resource federalism whereby competence over natural resource governance could be shared between the federal government and the federating states.


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