Resource rich developing countries face challenges in ensuring that revenues from Extractive Industries (EI) are used to foster economic development, reduce poverty and promote shared prosperity.
Effective governance of extractive revenue is a precondition for ensuring that the ‘development dividend’ that is meant to flow from the decision to extract becomes a reality. Good governance of the sector requires sufficient participation, transparency, and accountability across the entire EI value chain.
A wide range of stakeholders can contribute to these governance objectives, whether they be government agencies, private sector, civil society, and formal accountability institutions, such as parliaments.
Parliaments are coming to the fore as key stakeholders in ensuring that extractive revenues are equitably shared. That means making sure that extractive revenues are accurately captured in budget forecasts and estimates, appropriations are focused on delivering services to affected communities, and effective oversight of governments’ management of the sector is provided.
I participated in the recent 2015 Helsinki Parliamentary Seminar, hosted by the Parliament of Finland as part of the World Bank-Finnish Parliamentary Partnership, which brought together parliamentary delegations from Ghana, Iraq, Kenya, Mongolia, Somalia, South Sudan, Tanzania, Timor Leste, and Zambia to explore how parliaments could better contribute to the governance of revenues from extractive industries.
These are some of the views and reports relevant to our readers that caught our attention this week.
Last Friday in Tanzania, nearly 100 civil society groups and 12 international organizations, including the International Budget Partnership, Greenpeace and ONE, launched a global effort to make public budgets transparent, participatory and accountable. Budgets are the most critical tool that governments have to address problems like poverty, provide critical services like education and health care, and invest in their country’s future. When the political speeches end, it is how governments actually manage funds to meet their promises and priorities that matters.
The Civil Society Movement for Budget Transparency, Accountability and Participation envisions public finance systems that make all budget information easily accessible, provide meaningful opportunities for citizens and civil society to participate in budget decisions and oversight throughout the process, and include strong institutions to hold governments accountable for how they raise and spend the public’s money. READ MORE
The Gulf Cooperation Council (GCC) states comprising of Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Kuwait & Oman, have gained a unique status from the perspective of migration and the international mobility of labor. What makes the Region distinctive is the fact that migrant population forms a majority of inhabitants.
While the finding of oil resulted in substantial wealth creation for these countries, Governments understood that oil wealth must be used to build a strong post-oil economy. This led to Gulf countries launching ambitious large-scale modern infrastructure projects. A major requirement for implementing this plan was the availability of work force. This was addressed by importing both skilled and unskilled workers from the developing countries, particularly Asia.