U.S. sends mixed messages on transparency
S.E.C. in bed with the oil companies? Oxfam event in front of S.E.C., February 10, 2012. Photo: Oxfam America
The big news that came out of Obama’s recent trip to Africa was the announcement of his “Power Africa” initiative. The initiative has been praised and criticized, but I’ll just note the last few paragraphs of the White House Fact Sheet that discuss transparency — almost as an afterthought:
Transparent Natural Resource Management
The recent discoveries of oil and gas in sub-Saharan Africa will play a critical role in defining the region’s prospects for economic growth and stability, as well as contributing to broader near-term global energy security. Yet existing infrastructure in the region is inadequate to ensure that both on- and off-shore resources provide on-shore benefits and can be accessed to meet the region’s electricity generation needs.
Although many countries have legal and regulatory structures in place governing the use of natural resources, these are often inadequate. They fail to comply with international standards of good governance, or do not provide for the transparent and responsible financial management of these resources.
Power Africa will work in collaboration with partner countries to ensure the path forward on oil and gas development maximizes the benefits to the people of Africa, while also ensuring that development proceeds in a timely, financially sound, inclusive, transparent and environmentally sustainable manner.
Natural resources benefits for all?
The Africa Progress Report 2013 presented at the World Economic Forum on Africa created quite a media buzz. With its focus on natural resources — the extractive industries in particular — the report describes a continent “on the edge of enormous opportunity”:
Over the past decade, Africa’s economies have been riding the crest of a global commodity wave. Extractive industries have emerged as a powerful engine of economic growth. Surging demand for natural resources in China and other emerging markets has pushed export prices to new highs – and the boom shows no sign of abating. Africa’s petroleum, gas and mineral resources have become a powerful magnet for foreign investment. With new exploration revealing much larger reserves than were previously known, Africa stands to reap a natural resource windfall.
The challenge facing the region’s governments is to convert the temporary windfall into a permanent breakthrough in human development. Effective and equitable stewardship of Africa’s natural resource wealth could transform the region.
The report, Equity in Extractives, and more, are available on the Africa Progress Panel website.
