Subnational: Harnessing Oil, Gas and Minerals for Local Development

Resource rich areas in developing countries are often the poorest and most unstable. Yet subnational governments are receiving increasing resource revenues, are regulating and managing many different aspects of the extractive sector and are responsible for providing money for the most important social services to their citizens. Building capacity of subnational actors is key to improving governance of extractive industries.

NRGI’s capacity building program works with local and national governments, civil society, journalists and companies to promote transparent, accountable and effective management of nonrenewable natural resources.

Resource rich areas in developing countries are often the poorest and most unstable. Yet subnational governments are receiving increasing resource revenues, are regulating and managing many different aspects of the extractive sector and are responsible for providing money for the most important social services to their citizens. Building capacity of subnational actors is key to improving governance of extractive industries.

NRGI’s capacity building program works with local and national governments, civil society, journalists and companies to promote transparent, accountable and effective management of nonrenewable natural resources.

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In 2008, the Revenue Watch Institute (RWI)—in collaboration with the Open Society Foundations Local Government and Public Service Reform Initiative (OSF-LGI)—designed a project to address the enormous governance challenges facing local governments in Peru.

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Our videos explain how governments, civil society, journalists and companies got together with RWI to promote transparent, accountable and effective management of nonrenewable natural resources. These videos describe the impact of such projects and offer lessons for future efforts.

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Revenue Watch has developed three papers on topics germane to subnational governments: Monitoring Company Social Expenditures, Oil, Gas and Mineral Revenue Management, and Local Content Initiatives

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Case studies from our pilot projects in Ghana, Indonesia, Nigeria, Peru and a briefing distilling lessons from them provide valuable lessons for governments, civil society, journalists and companies on harnessing the benefits of extraction at the local level.

A noteworthy study from NRGI partner Réseau de Lutte contre la Faim (RELUFA) combines EITI data and legal analysis to show the impact of mining projects on communities in northern Cameroon—where, despite 50 years of industrial extraction, social and economic development is lagging.

With the new administration in Indonesia comes an opportunity to make much-needed changes in the way mining licenses are granted.

In resource-rich countries around the world, senior-level policymakers face difficult extractive sector decisions—from how to attract investors and manage revenues to how to engage citizens and protect the environment.

The bumpy road leading to the gold town of Obuasi in the Ashanti region depicts the worrying state of an area that has played a significant role in Ghana’s economic development...

In April 2014, residents of Tsogttsetsii and Khanbogd soums (districts) gathered for a meeting on mining. These soums, located in a remote part of the Gobi desert, had been the setting for mining meetings before—but this one was different.

Beyond the IRM and a government self-assessment, an essential component of OGP work in any country is the development of so-called shadow reports, which help identify gaps in the implementation process and measure progress...

What are "shadow reports" and how are they used to help OGP in making governments "more open, accountable, and responsive to citizens"? Paul Maassen, OGP civil society coordinator, says they provide "an extra tool to push for real government commitment."

Briefings

Decentralized mining licensing in Indonesia has produced mostly negative outcomes. This policy briefing explores some of them, and also makes recommendations for how Indonesia (and other countries) might address the challenges of deciding how and at what level to issue mineral licenses.

This paper distills lessons learned from pilot projects that RWI implemented in Ghana, Indonesia, Nigeria and Peru between 2008 and 2012. It complements country case studies and policy papers—including a synthesis of this paper, all available at revenuewatch.org/subnational.

A case study of the two-year Asutifi subnational project, which aimed to improve the governance of mining revenues in a tiny district in central Ghana.

This RWI study explores how Indonesia's Blora and Bojonegoro districts are turning local resource revenues into sustainable development.

This subnational study explores RWI's work in Nigeria's Bayelsa State to increase local transparency and accountability of oil revenues.

In 2008, RWI designed a project to address the enormous governance challenges facing regional and local governments in Peru.