Capacity Development for Natural Resource Management (NRM) in Africa Highlights from ACIR2013

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1 Capacity Development for Natural Resource Management (NRM) in Africa Highlights from ACIR2013 Kobena HANSON, PhD Head, Knowledge & Learning/ACIR Team Leader Presented at the 2013 Africa for Results (AfriK4R) Forum Towards an Effective Management of Natural Resources Monday, December 2, 2013

2 I. Context of Africa today II. Assessing Capacity Why Measure Capacity? ACBF s Definition ACIR Process Outline III. ACIR2013 Capacity to Manage Natural Resources Added Implications New Moment/Conjecture/Dispensation in NRM in Africa Emergence of New Developments/Possibilities Country Highlights IV. New Normative and Policy Environment V. Conclusion 2

3 I. Africa, moving at multiple speeds High average annual economic growth but lower real per capita income today than in 1970 and more than 500 million still live in poverty Dependency on external/food aid co-exists with growth in domestic revenues and food surpluses in many countries Abundant natural resources only partially exploited, vast market potential Deepening of political and economic reforms and renewed interest due to new discoveries and new players Rich debate on the balance of roles between the state, MNCs, CSOs and local communities 3

4 II. Assessing Capacity: ACI Report Why measure capacity? Better plan, manage, implement & account for results of policies and programs Effectively integrate capacity building goals in development strategies & agendas for service delivery Gauge achievement on policies & programs Grasp underlying factors driving change and to foster change in areas identified as priority What is the Scope of ACIR? Coverage: All Africa Theme: Emerging Capacity Development Issues in Africa Approach: Field based data collection complemented by secondary sources Measures: Thematic indices & composite index 4

5 ACBF's Definition of Capacity Capacity means having the aptitudes, resources, relationships, and facilitating conditions required to act effectively to achieve specified mandates It is conceptualized at three levels--individual, organizational, and enabling environments (interactions between individuals and organizations) It takes meaning in specific settings (capacity for what?) 5

6 ACIR Team & Process Core ACIR team guides conception, design & process Original data collection by in-country experts build capacity for assessment and data collection Regional Focal Points oversight, fact-check and field supervision Background papers sourced globally get the best ideas on a competitive basis Policy Units/think-tanks CPIA self-assessment ERG validation, critique and independent interrogation ACBF pulls it all together knowledge function, unique skills, relevance to operations Validation workshops validation, independent verification, broader stakeholder buy-in and joint ownership 6

7 III. ACIR Geographical Coverage 44 Nations Theme: Capacity Development for Natural Resources Management Coverage 44 Countries CPIA 16 Countries 7

8 Why focus on capacity for NRM? Natural resources contribute to growth, employment and fiscal revenues, but they need to be managed well Governance of natural resources is especially important in the context of: Divided societies or where there is ethnic conflict; poor or highly unequal societies Failure to govern well renders natural resources a "curse", so it is critical to examine the status of NRM and the capacity challenges 8

9 Added Implications of Recent Discoveries Abundant natural resources only partially exploited Approx. Only 20% so 80% untouched/unknown Vast market potential due to demographic dividend and regional integration Deepening of political and economic reforms Renewed interest due to new discoveries and new players 9

10 New Dispensation in NRM in Africa Legacy of Old NRM Problems Asymmetries of weak states vs. strong external actors MNCs Often low/erratic commodity prices, unfair terms of trade Low technological and managerial capacity Weak bargaining capacity & systems of taxation, lack of transparency Windfall rents, when realized, extracted for benefit of elites Lack of economic diversification and shared growth Unmitigated environmental damage caused by extraction processes Socio-cultural displacement of affected communities; chronic conflict and flare-ups of violence Discrediting of NR-based development as viable model of national well-being (e.g., resource-curse / paradox of plenty ) 10

11 Emergence of New Developments Growing state coherence with strong NRM policy frameworks; increasing regional/sub-regional integration & linkages High, albeit erratic, commodity prices BRICS Enhanced technical skills (law, science, mgt); & a recognition of need for training programs Greater sophistication and political will to bargain EITI, KCPS, PWYP, Revenue Watch, etc. Rise of CSOs with enhanced capacity and international links New configurations of dialogue (public, MNCs, CSOs, and locals) 11

12 Emergence of New Devts (cont.) Mobilization of community interests, CBNRM Promotion of green growth, REDD+, natl/intl NGOs advocacy Extensive debate on value chains/jobs; Development of SWFs Botswana, Angola, Nigeria, Ghana, etc. Exposure of problem of missing revenues and rise in CSR programs Disciplinary effects of public expectations, external scrutiny, & democratic norms Rejection of blood diamonds, conflict timber, abuses of MNC oil & gas extraction; Africa-wide initiatives (e.g. AMV, AMDC); multilateral efforts (AfDB); plus industry self-policing initiatives 12

13 Strategic use of natural resources for needs of today and tomorrow Not at all, 27.5% Existence, 22.5% Part of NDS, 50.0% Source: Computed from ACI 2013 database 13

14 % of countries Legitimacy of Policy Environment (NDS) for Managing Natural Resources Very Low Low Medium High Very High Source: Computed from ACIR 2013 database 14

15 Dialogue between state, extractive industry and society mechanisms for social inclusion There is a network of CSOs working to give citizens the ability to influence decisions on NRs by promoting access to information, participation and justice in environmental decision-making 100% 80% The country has put in place a mechanism to facilitate transparent and legal trade in natural resources 60% 40% A national dialogue platform is established 20% 0% The legislature has the mechanism to execute its mandate in environmental governance There is a cross-sectional (public, private, CSO, indigenous groups) forum/dialogue mechanism where decisions on natural resources management are taken The Civil Society Organizations have space/freedom to execute their mandate Source: Computed from ACIR 2013 database 15

16 Harnessing Revenue from Extractives to Support National Public Goods (education, jobs) Government funds educational & training institutions, R&D and public sector institutions in minerals sector 80% 60% 40% 20% The contribution of the NR sector to total employment is more than 10% 0% There are tailored training and development programs Source: Computed from ACIR 2013 database Education and training programs are aligned towards Africa Mining Vision and industry needs 16

17 Country Highlights Liberia: forestry sector used policy, institutional building, and operation responses to curb corruption illicit timber trade Mozambique: forestry sector cancelled/reduced land areas of 1500 investors due to non-compliance with investment plan Nigeria: statutory backing for the EITI Angola, Nigeria: SWFs following in steps of Botswana to invest resource wealth for future generations/public good Ghana, Kenya, Tanzania, Uganda, & Mozambique also established/ planning to Ethiopia: higher education building capacity of HE staff in NRM and eco-tourism Botswana: negotiation De Beers moving its global sorting, aggregation and sales operations from London to Gaborone. 17

18 Capacity for NRM Top Performers Country Policy Environment Processes for Implementation Devt Results Capacity Devt Outcomes Index NRM RWANDA GHANA NAMIBIA BOTSWANA NIGERIA SAO TOME & PRINCIPE GAMBIA MOROCCO ZIMBABWE MALI Source: ACIR 2013 database Rank NRM 18

19 IV. New Normative & Policy Envt. A new, more complex, more evidence-based, more participatory landscape of NRM This revised landscape, has a more diversified and empowered portfolio of stakeholders and actors The implication is that real growth & transformation based on natural resources is possible So-called resource curse is not inevitable Shift emphasis to issues of capacity, leadership, results-tracking, and good governance 19

20 New Normative & Policy Envt (cont.) The entire portfolio of stakeholders is also subject to a new normative milieu evidenced by the emerging NRM policy environment frame the sphere of potential constructive action as the ACIR notes, there are now new spaces for agency. But agency is unrealized potential. So what to do? Capacitate actors & stakeholders (i.e., Govts., citizens, MNCs, communities, institutions, & non-state actors); Harmonize/integrate planning agencies across various sectors of the natural resources value-chain; Enhance tax collection & use proceeds to ensure sustainable devt.; Improve leadership capacity, build accountable institutions, and adopt good-fit approaches and policies that enable countries to manage the entire natural resource value-chain 20

21 V. Conclusion Observed winds of change not only mirror the ACIR NRM index scores; but also RWI s Resource Governance Index State of NRM capacity, is good room for improvement Capacity of all NRM value-chain stakeholders need enhancing prospecting, extraction, processing, marketing, management Political will to improve good governance is vital Going forward, Africa needs good-fit approaches, which recognize the realities of local contexts; and aim for incremental steps in governance via aspirational, but achievable, milestones. Merci de m avoir prêté votre attention Thank you for listening! 21