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African Democracy and Oil: A Combustible Mix | Revenue Watch Institute - 0 views

  • I was motivated by the conviction that parliaments are central to good governance—representing the voice of the people, making laws and holding the executive to account. I still believe that, but the complex challenges posed by oil wealth in today's Africa means parliaments across the continent struggle to fulfil these roles.
  • The message was clear: to be an MP representing the voice of your constituents against the interests of the elite can be dangerous. African MPs need not only to be wealthy, but also brave.
  • Tribalism is never far beneath the surface and is a major barrier to achieving a national consensus. For many Africans, tribal allegiances are strong, but there is weak identification with the nation. Crafting unity in a nation created by imposed colonial boundaries remains a distant concept—witness the imminent breakup in Sudan—and often impedes efforts to garner widespread support for a national oil or mining policy. Failed efforts to build national consensus around policy objectives can lead to situations like Ghana's, where the country has begun oil production without coming to agreement on a national oil policy, instead following an outdated law drafted in 1984 with few regulations to ensure the country derives the maximum benefit from its finite resources.
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  • Oil laws are still written without a national consensus on the role of the oil sector in the country's development. Detailed regulations are unwritten or unenforced. Lack of information and knowledge leave MPs with formal power but no means to actually hold government to account.
  • Foreign oil companies and their contractors effectively regulate themselves in places like Ghana and Sierra Leone. The lack of explicit regulations gives too much leeway for officials' discretion in approving activity, and too much risk of their making personal gain from their official position.
  • Most Ugandans I met assumed that they had been sold short by either their government or the oil companies. In fact, in my review of the contracts the Ugandan government negotiated, the agreements were tough and compared favourably with other countries.
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