‘Resource Misery’ and the Politics of Resource Governance in the Petro-States of Africa

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
John Jingu

The discovery and exploitation of petroleum resources in a number of African countries has thrown into prominence the ‘resource curse’ thesis which suggests that resource wealth causes problems for a country. This article argues that petroleum resources, like all natural resources, are not a curse; instead, it is the actions and decisions of various actors involved in the struggle for such resources that lead to misery, particularly for the victims. The inappropriateness of the concept ‘resource curse’ in the context of Africa has moved this writer to propose an alternative concept – ‘resource misery’ – to reflect the actual condition that tends to befall a country and the victims owing to the often irresponsible actions and decisions of powerful actors involved in the abuse of natural resources. The article expands on seven maxims that, if embraced and implemented, should enable the new petro-states of Africa to escape resource misery.

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Mahad Mohamed Sheik

Purpose: The abundance of natural resources is usually considered the blessing for the countries that own such resources. However, such wealth is often associated with poverty and a slower economic growth. This phenomenon is called the resource curse, and it shows that most countries that are rich in natural resources have markedly reduced economic growth and development, and it shows that the wealth of natural resources adversely affects their economies, although it is intuitively expected to be the opposite i.e. that such wealth would have a positive impact on the country’s economic development. The general objective of the study was to find out the motivational effect of oil exploration in Somali and the habitual African resource curse. Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps. Findings: The study found out that Oil resource exploration has led to progress in some developed economies such as Canada which was able to avoid the resource curse. This is because oil revenues helped Canada among other countries make investments in capital, build employment and grow. Other countries such as Russia and Japan have not been able to avoid the resource curse. African countries in general where the majority of oil producing nations are, have an inverse correlation between oil production and industrial development. Examples of African countries that have been affected by the resource curse are Nigeria, Angola, South Africa and Zimbabwe. Empirical results indicate that, Somalia motivation for oil exploration is for economic development. However, it has not been spared the resource curse because the presence of oil has led to civil wars and terrorisms as groups seek to control the areas with oil fields. In addition, Somali and Kenya have involved diplomatic warfare over oil reserves that are located in the Indian Ocean near their borders. Recommendations: The study recommends that the government should enact laws which will govern petroleum operations, as well as empowering the Somali Petroleum Authority,(SPA) which will act as a regulatory body overseeing oil and gas activity.


2014 ◽  
Vol 1 (1) ◽  
pp. 39-58 ◽  
Author(s):  
Omar Al-Ubaydli ◽  
Kevin McCabe ◽  
Peter Twieg

AbstractSeveral scholars have argued that abundant natural resources can be harmful to economic performance under bad institutions and helpful when institutions are good. These arguments have either been theoretical or based on naturally occurring variation in natural resource wealth. We test this theory by using a laboratory experiment to reap the benefits of randomized control. We conduct this experiment in a virtual world (Second Life™) to make institutions more visceral. We find support for the theory.


2019 ◽  
Vol 11 (9) ◽  
pp. 67
Author(s):  
Philip Agyei Peprah ◽  
Yao Hongxing ◽  
Alex Boadi Dankyi

In this study, it explored connections between FDI inflows and natural resource. The paper is an effort to investigate a sample of 10 most resourced sub-Sahara African countries and examine the influence of natural resources on FDI inflow. Further, natural resource wealth is reflected to weaken the FDI inflow. This study discovers if the natural resource overflow affects the FDI inflows. By means of panel data for a sample dated 1990-2017, the paper employed fixed effects method and settles that natural resource slows down FDI inflow of the host nation. The results indicate that economic growth, labor force, trade openness and financial development framework promote FDI inflow in Sub-Sahara Africa countries. The study proposes that FDI inflow to SSA is not only driven by the availability of natural resources in a country but by some exogenous factors, countries with non-existence of natural resources and can obtain FDI by cultivating their bodies and policy environment. Second, multifaceted organizations like the IMF and the World Bank can play a significant role in assisting FDI by encouraging good organisations in SSA.


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.


2020 ◽  
Vol 33 (3) ◽  
pp. 649-666
Author(s):  
Eliana Cusato

AbstractAccess to and distribution of natural resources have been since immemorable time at the root of violent conflict. Over the last few decades, international institutions, legal scholars and civil society started to pay attention to the dangerous liaison between resource commodities and wars. Current debates emphasize how, through sanctions, global regulatory initiatives, and legal accountability, the governance of natural resources in conflict and post-conflict countries has improved, although international law should play a greater role to support the transition to a durable peace. The aim of this article is to illuminate the biases and limitations of dominant accounts by exploring the influence of the resource curse thesis, and its hidden propositions, upon legal developments. Using the Sierra Leonean and Liberian Truth Commissions as a case study, it shows how legal practices and discourses have contributed to a narrow understanding of resource-driven wars as started by voracious rebel groups or caused by weak/authoritarian/corrupt governments. What is obscured by the current focus on greed and ineffective resource governance? What responsibilities and forms of violence are displaced? Engaging with these questions allows us to see the dynamics through which structural injustices and distributive concerns are marginalized in existing responses to these conflicts, how the status quo is perpetuated, and the more subtle ways in which external interventions in the political economy of the Global South take place.


Author(s):  
Anthony Bebbington ◽  
Abdul-Gafaru Abdulai ◽  
Denise Humphreys Bebbington ◽  
Marja Hinfelaar ◽  
Cynthia A. Sanborn ◽  
...  

This chapter develops a conceptual framework for understanding the politics of extractive industry governance. Building from the work of Karl, Ross, Watts, and others, and their efforts to understand the political drivers and consequences of the resource curse, the chapter proposes an approach that also engages with political settlements theory, addressing the political implications of the materiality of natural resources and the politics of ideas surrounding resource governance. The chapter then introduces a programme of cross-country, comparative research designed to address the relationships among political settlements, extractive industry, and patterns of development; describes the questions that guided this research; and presents the methods used.


2018 ◽  
Vol 11 (2) ◽  
pp. 739-755
Author(s):  
Johan Van Der Vyver

Abstract Development programs in many African countries include the reallocation of land and the nationalization of mineral resources for the benefit of less privileged communities in those countries. Implementing these programs is, however, quite complicated. This paper pays special attention to the confiscation of the land of white farmers in Zimbabwe as part of a development program, and the rapid decline of the economy of that country in consequence of this program. It serves as a reminder that depriving landowners of their property rights is counterproductive and is therefore not a feasible development strategy. As far as the right to explore natural resources is concerned, the paper highlights the repeated resolutions of the United Nations proclaiming the “inalienable right of all states freely to dispose of their natural resources in accordance with their national interests” as an inherent aspect of sovereignty [e.g. G.A. Res. 626, 7 U.N. GAOR, Supp. (No. 20), at 18, U.N. Doc. A/2361 (1952).], with occasional reminders that developing countries were in need of encouragement “in the proper use and exploitation of their natural wealth and resources” [e.g. E.S.C. Res. 1737, 54 U.N. ESCOR, Supp., No. 1 (1973).]. These resolutions were adopted in the context of the decolonization policy of the United Nations and were mainly aimed at denouncing the exploitation of the mineral resources of African countries by colonial powers [G.A. Res. 2288, 22 U.N. GAOR, Supp. (No. 16), at 48, U.N. Doc. A/6716 (1967)., para 3]. The emphasis of international law relating to the natural resources over time also emphasized the right to self-determination of peoples. As early as 1958, the General Assembly, in a resolution through which the Commission on Permanent Sovereignty over Natural Resources was established, stated that the “permanent sovereignty over natural wealth and resources” of states is “a basic constituent of the right to self-determination” [G.A. Res. 1314, 13 U.N. GAOR, Supp. (No. 18), at 27, U.N. Doc. A/4090 (1958).]. The African Charter on Human and People’s Rights similarly provides “All peoples shall freely dispose of their wealth and natural resources. This right shall be exercised in the exclusive interest of the people. In no case shall a people be deprived of it” [Art 21(1)]. This provision featured prominently in several judgments of courts of law, such as the one of the South African Constitutional Court in the case of Bengwenyama Minerals (Pty) Ltd & Others v Gemorah Resources (Pty) Ltd & Others [2011] (3) BCLR 229 (CC) (3) BCLR 229 (CC) and of the African Court of Human and People’s Rights in the case of Social and Economic Rights Action Centre (SERAC) v Nigeria (2001) AHRLR 60 (ACHPR 2001), Communication 155/96, 15th Annual Report. AHRLR 60 (Social and Economic Rights Action Centre (SERAC) v Nigeria (2001) AHRLR 60 (ACHPR 2001), Communication 155/96, 15th Annual Report.) Communication 155/96. In view of these directives of international law, the paper will critically analyze the South African Mineral and Petroleum Resources Development Act 28 of 2002, which deprived landowners of the ownership of unexplored minerals and petroleum products and proclaimed mineral and petroleum resources to be “the common heritage of all the people of South Africa” with the state as the custodian thereof.


2013 ◽  
Vol 20 (1) ◽  
pp. 361
Author(s):  
Matthew Pritchard

The last sixty years have seen a significant shift away from seeing resource wealth as a key component of positive macro-economic reform, to acceptance of the negative impacts that an abundance of, or dependence on, natural resources can have on security, economic growth, and the development of accountable political institutions. The appropriation and extraction of natural resources emerge as expressions of complex relations existing within and between states, institutions and actors. At the same time, the attention given to this potential 'resource curse' has precipitated a number of critiques that challenge not only the data and statistical methods used to link resource wealth with negative development outcomes, but also the theoretical foundation and relevance of studies that reduce complex socio-political and economic relations to the presence of specific resources. This article draws on key literature from the field of political ecology to demonstrate how the concept of 'nature' has been omitted from these discussions. Critical analysis of 'nature' can refine the theoretical foundation and practical application of the 'resource curse' thesis. By re-inserting, re-politicizing and re-localizing the concept of nature we can include local production and consumption in the analysis, while also highlighting the link between our understanding of natural resources and historically rooted discourses of 'proper-use.'Key Words: Resource curse, political ecology, security, nature


2007 ◽  
pp. 4-27 ◽  
Author(s):  
V. Polterovich ◽  
V. Popov ◽  
A. Tonis

This paper compares various mechanisms of resource curse leading to a potentially inefficient use of resources; it is demonstrated that each of these mechanisms is associated with market imperfections and can be "corrected" with appropriate government policies. Empirical evidence seems to suggest that resource abundant countries have on average lower budget deficits and inflation, and higher foreign exchange reserves. Besides, lower domestic fuel prices that are typical for resource rich countries have a positive effect on long-term growth even though they are associated with losses resulting from higher energy consumption. On top of that resource abundance allows to reduce income inequalities. So, on the one hand, resource wealth turns out to be conducive to growth, especially in countries with strong institutions. However, on the other hand, resource abundance leads to corruption of institutions and to overvalued real exchange rates. On balance, there is no solid evidence that resource abundant countries grow more slowly than the others, but there is evidence that they grow more slowly than could have grown with the right policies and institutions.


Author(s):  
Leif Wenar

Article 1 of both of the major human rights covenants declares that the people of each country “shall freely dispose of their natural wealth and resources.” This chapter considers what conditions would have to hold for the people of a country to exercise this right—and why public accountability over natural resources is the only realistic solution to the “resource curse,” which makes resource-rich countries more prone to authoritarianism, civil conflict, and large-scale corruption. It also discusses why cosmopolitans, who have often been highly critical of prerogatives of state sovereignty, have good reason to endorse popular sovereignty over natural resources. Those who hope for more cosmopolitan institutions should see strengthening popular resource sovereignty as the most responsible path to achieving their own goals.


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