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

Outline

I. Context of Africa today

II. Assessing Capacity Why Measure Capacity?

ACBF’s Definition

ACIR Process

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

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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

II. Assessing Capacity: ACI Report

•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

Why measure capacity?

•Coverage: All Africa

•Theme: Emerging Capacity Development Issues in Africa

•Approach: Field based data collection complemented by secondary sources

•Measures: Thematic indices & composite index

What is the Scope of ACIR?

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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?)

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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

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2013 Geographical Coverage – 44 Nations

III. ACIR2013

• Theme: Capacity Development for Natural Resources Management

• Coverage – 44 Countries • CPIA – 16 Countries

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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

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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

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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”)

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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)

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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

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Strategic use of natural resources for needs of today and tomorrow

Existence, 22.5%

Part of NDS, 50.0%

Not at all, 27.5%

Source: Computed from ACI 2013 database

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Legitimacy of Policy Environment (NDS) for Managing Natural Resources

0

10

20

30

40

50

60

Very Low Low Medium High Very High

% o

f co

un

trie

s

Source: Computed from ACIR 2013 database

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Dialogue between state, extractive industry and society – mechanisms for social inclusion

0%

20%

40%

60%

80%

100%

There is a network of CSOs working togive citizens the ability to influence

decisions on NRs by promoting access toinformation, participation and justice in

environmental decision-making

A national dialogue platform isestablished

There is a cross-sectional (public, private,CSO, indigenous groups) forum/dialoguemechanism where decisions on natural

resources management are taken

The Civil Society Organizations havespace/freedom to execute their mandate

The legislature has the mechanism toexecute its mandate in environmental

governance

The country has put in place a mechanismto facilitate transparent and legal trade in

natural resources

Source: Computed from ACIR 2013 database

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Harnessing Revenue from Extractives to Support National Public Goods (education, jobs)

0%

20%

40%

60%

80%

Government funds educational &training institutions, R&D and publicsector institutions in minerals sector

There are tailored training anddevelopment programs

Education and training programs arealigned towards Africa Mining Vision

and industry needs

The contribution of the NR sector tototal employment is more than 10%

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Source: Computed from ACIR 2013 database

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.

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Capacity for NRM – Top Performers

Country Policy

Environment

Processes for

Implementation

Devt

Results

Capacity

Devt

Outcomes

Index

NRM

Rank

NRM

RWANDA 100.0 87.8 71.1 79.2 83.2 1

GHANA 85.2 83.6 79.5 75.0 80.6 2

NAMIBIA 87.0 70.8 75.3 79.2 77.6 3

BOTSWANA 88.9 77.9 69.9 75.0 77.3 4

NIGERIA 79.6 75.3 66.4 75.0 73.8 5

SAO TOME &

PRINCIPE 74.1 57.2 72.2 71.4 68.0 6

GAMBIA 87.0 63.2 67.7 52.4 65.4 7

MOROCCO 61.1 77.4 63.3 54.8 63.2 8

ZIMBABWE 57.4 70.3 60.1 62.5 62.2 9

MALI 75.9 68.8 67.0 45.8 62.1 10

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Source: ACIR 2013 database

• 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

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IV. New Normative & Policy Envt.

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

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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.

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Thank you for listening!

Merci de m’avoir prêté votre attention