EITI progress and countries' back-pedalling.

The Economist highlights this week the progress of the Extractive Industries Transparency Initiative (EITI), to bring transparency and reduce corruption in the oil and other minerals industries across the world.

The article highlights some cases of "back-pedalling" in Africa, where countries find ways around the requirement of transparent accounting to siphon off money to corrupt individuals. Still, one could argue that the EITI exactly helps to highlight such behaviour.

Similarly, Azerbaijan which lost [eiti.org] its EITI compliant country status earlier this year, and was downgraded to candidate. The major concern here is the involvement of civil society. NRGI put out a press-release [resourcegovernance.org] condemning the beating of one of its advisory council board members, Ilgar Mammadov, by "high-ranking staff" of a prison where he's held since 2013.
Mr. Mammadov was arrested in in 2013 on charges of inciting mass violence in relation with an anti-government protest, and subsequently sentenced to 7 years in jail. The Council of Europe and European Court of Human Rights have ruled that the judgement was illegal and ordered his release [amnesty.org]. The government chose to ignore that ruling. The Council of Europe withdrew [azerireport.com, see also CoE website] from a working group it had initiated with Azerbaijan due to its suppression on human rights defenders in past years. Following the beating Mammadov's life is reportedly [azerireport.com] in danger now.

We posted earlier on Azerbaijan, see here.

New Research: Sovereignty, the ‘resource curse’ and the limits of good governance: a political economy of oil in Ghana

Jon Phillips [kcl.ac.uk], Elena Hailwood and Andrew Brooks [kcl.ac.uk], all King's College London

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Sovereignty, the ‘resource curse’ and the limits of good governance: a political economy of oil in Ghana

Abstract:

The idea of a resource curse has influenced policy makers and led to calls for good governance to avoid the pitfalls of oil sector development. Through discussion of Ghana’s recent insertion into the global political economy of oil, this paper describes the limits of the resource curse framing and associated liberal institutional management approaches to the inherently political nature of oil exploration and production. The paper describes ways in which sovereignty has been exercised both in opposition to and in support of foreign capital, and the role of discourses of ‘good governance’ in structuring the material politics of resource access.

Published in Review of African Political Economy, available here [tandfonline.com].

New Research: Mining and local corruption in Africa

A new working paper by Andreas Kotsadam [wordpress.com], Eivind Hammersmark Olsen [uio.no], Carl Henrik Knutsen [uio.no], and Tore Wig [uio.no], all at University of Oslo (and other affilitations)

Mining and local corruption in Africa

Abstract:

We investigate whether mining affects local-level corruption in Africa. Several cross-country analyses report that natural resource production and wealth have ad- verse effects on political institutions, for instance by increasing corruption, whereas other country-level studies show no evidence of such “political resource curses”. These studies face well-known endogeneity and other methodological issues, and employing alternative designs and micro-level data would allow for drawing stronger inferences. Hence, we connect 90,000 survey respondents in four Afrobarometer survey waves to spatial data on about 500 industrial mines. Using a difference-in-differences strategy, we find evidence that mining increases bribe payments. Mines are initially located in less corrupt areas, but mining areas turn more corrupt after mines open and actively produce. A closer study of South Africa — using even more precise spatial matching of mines and survey respondents — corroborates the continent-wide results. Hence, mineral production is, indeed, a “curse” to local institutions.

Available here [pdf, uio.no]