1 / 19

EXTRACTIVE INDUSTRIES AND PARLIAMENTARY OVERSIGHT: MAKING THE LINK

EXTRACTIVE INDUSTRIES AND PARLIAMENTARY OVERSIGHT: MAKING THE LINK. Dr. Rasheed Draman. Extractive Sector and Developing Countries. Many developing countries rich in natural resources

lindsey
Download Presentation

EXTRACTIVE INDUSTRIES AND PARLIAMENTARY OVERSIGHT: MAKING THE LINK

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. EXTRACTIVE INDUSTRIES AND PARLIAMENTARY OVERSIGHT: MAKING THE LINK Dr. Rasheed Draman

  2. Extractive Sector and Developing Countries • Many developing countries rich in natural resources • Challenge: Ensuring that revenue from extractive sector is used to help reduce poverty and improve living standards of population NATURALRESOURCES ENHANCED WELFARE

  3. Extractive Sector Governance • Transparency and Accountability • Strong institutions • Clarity of Goals, Roles and Responsibilities • Accurate and timely information

  4. Extractive Sector Governance • Proper policies and regulatory frameworks • Effective systems and processes for decision-making and implementation • Proper oversight of revenue management and wealth distribution

  5. Failure of Extractive Governance – “The Resource Curse” • Conflict • Corruption • Damaged social contract/compact • Difficult macroeconomics: volatility excessive borrowing; low savings • Skewed development • Lack of diversification/ enclave effects • Insufficient investment in human resources • Lack of democracy and human rights • All leading to low growth & worsened level of poverty

  6. Dividends of Good Extractive Governance • Peaceful Society • Investor confidence • Diversified economy with forward & backward linkages to the extractives sector • Economic Growth • Improved Social Infrastructure • Shared Prosperity • Positive Corporate Social Response

  7. THE PARLIAMENT-LED REFORM PROCESS Improved state Strong Governance Framework Parliamentary - Representation - Legislation - Oversight Good Laws & Well Resourced Institutions Status quo Weak Governance System/ Structures No or Weak Laws & Institutions

  8. THE EXTRACTIVE INDUSTRIES VALUE CHAIN

  9. Role for Parliament in the Extractive Value Chain • Assessment of the resource base and potential social & economic impact in exploiting it • Obtaining prior informed consent of resource owners or communities

  10. Role for Parliament in the Extractive Value Chain • The Award of Contract relies on: • Institutional, legal, regulatory and contractual framework • Open access to title • Local content

  11. Role for Parliament in the Extractive Value Chain • During Monitoring of Operations (Regulation) important to ensure that it is: • In line with contract clauses • In line with international standards • National cadastre • Geological data centre

  12. Role for Parliament in the Extractive Value Chain • Fiscal terms choice • Transparent reporting • Procedure to budget EI revenues • Country economic policies • Revenue saving and expenditure • Transparent revenue redistribution

  13. Role for Parliament in the Extractive Value Chain • Revenue to benefit the population • Ensure procurement practice • Monitor expenditure at local level

  14. A Role for the State??

  15. The Case of Ghana • Parliamentary Centre has supported the Parliament of Ghana since 2009 in strengthening its oversight capacity of its emerging petroleum sector • Key committees: • the Committee on Mines and Energy • the Committee on Local Government and Rural Development • the Finance Committee • the Public Accounts Committee

  16. The Case of Ghana • Support included: • Capacity building to better understand the sector and make new laws • Training on key governance issues in extractive industries • Facilitation to participate in international conferences and networking sessions to share ideas • Implementation of public consultation on petroleum bills • Expert analyses and direct input into bills under consideration and amendments, through memorandum

  17. The Case of Ghana • Several key results have been achieved: • Parliament adopted the Petroleum Revenue Management Act, 2011 (Act 815) • Parliament rejected a weak Exploration & Production Bill and insisted redrafting • An independent regulatory body - the Petroleum Commission was established • An innovation – the Public Interest Accountability Committee (PIAC) established • Greater insight on extractive revenues and potential increased demands for accountability • Active Civil Society • Short Guide to Parliamentary Oversight of the Oil & Gas Sector

  18. Oversight Challenges • Oil Partisan Politics •  Lack of resources for oversight • Extractive Industry Transparency Initiative (EITI) Legislation – from voluntary to non-voluntary • Contract Transparency • Disclosure of Revenues/Corporate Taxes • The Africa Progress Panel Report 2013 •  Freedom of Information Law – “The Right To Know” Legal Process • Good laws but no resources for implementing the laws – i. e. PIAC

  19. A United Parliament and Independent Committees • Effective oversight depends on how united Parliament is in protecting its independence and institutional interests • Partisanship • Executive Dominance/Subordination of Parliament • Fusion vs. Separation of Powers • Winner-takes-all • How skilled or determined/independent committees are in utilizing powers, rules and tools available to them

More Related