National governments are distributing a larger share of the revenues from oil, gas and minerals to state and local governments and, with it, greater responsibility to provide basic public services. Subnational governments face a range of other issues created by extraction of natural resources, including land allocation questions, pollution, changes in the local economy, demands for services and guarantees of security and human rights. The videos explore how governments, civil society, journalists and companies got together with NRGI to promote transparent, accountable and effective management of nonrenewable natural resources. They describe the impact of such projects and offer lessons for future efforts.
Indonesia: Fueling the Future (13:15) | Arabic | French | Spanish | Bahasa Indonesia | |
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From 2008 to late 2010, NRGI (then RWI) and the Open Society Foundations Local Government and Public Service Reform Initiative (OSF-LGI) joined forces with local partners to help implement an oil revenue transparency and sustainable development planning project in Blora and Bojonegoro, two underdeveloped districts on the Indonesian island of Java. Seated atop a recently exploited oil field, the districts are raking in substantial resource revenues from this discovery but are unequipped to manage them. NRGI and OSF-LGI provided funding, capacity building and technical assistance to the partners and district governments.
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Peru: Better Forecasting (11:17) | Arabic | French | Spanish | Bahasa Indonesia | |
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The huge oil and mining revenues produced in Peru over the past seven years have shown the limits of the country’s decentralization. As the national government distributes larger shares of the revenues to producing areas, subnational officials and communities find they lack the capacity to manage the money. As a result, subnational governments cannot effectively spend the funds, or evenly distribute the wealth to rural, relatively poor communities. The exclusion and inequality have fueled conflict in resource-rich regions across the country.
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NRGI in Indonesia (3:52) | Goals in Peru (2:16) |
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Oil revenues could bring $1 million to Blora, and $88 million a year to Bojonegoro, tripling these current budgets of these governments. This video explains how NRGI and local groups helped the communities of Blora and Bojonegoro the ability to wisely spend and manage newly earned oil revenue
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NRGI developed a new approach to forecasting and budgeting to help regional governments in Peru better manage the windfall of oil and mining revenues after the decentralization of the federal government.
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The Global Recession (3:24) | The "Magic Number" (1:20) |
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More than half of Peru’s oil comes from Piura, a northwestern city in Peru. Oil revenues make up more than 40 percent of Piura’s development budget. In this video, we explain how developed a new approach to forecasting and budgeting to help the regional government in Piura better manage its oil and mining revenues after a recession caused oil prices to drop.
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Development in Peru is determined by the “magic number”—an annual budget regional governments are given by the Ministry of Finance every year. Because regional governments must spend the money before the end of the year, little thought goes into planning objectives, goals, projects or budgets
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Regional Planning in Peru (3:15) |
A New Methodology (2:21) |
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Working with local partners Grupo Propuesta Ciudadana in Lima and Centro de Investigación y Promoción del Campesinado, NRGI sought to help the regional government of Piura improve its ability to track revenue and improve its planning. It also helped citizen groups monitor and participate in the budgeting process.
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Due largely to oil, Piura’s annual budget nearly tripled over the last decade, to $415 million. NRGI assisted regional government officials make realistic medium-term plans for education, health and other programs with this revenue windfall.
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Lessons From Piura (1:52) |
The Cepu Block (3:21) |
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NRGI developed a new approach to forecasting and budgeting to help regional governments in Peru deal with the windfall of oil and mining revenues after the decentralization of the federal government. Thanks to better forecasts, the government was able to increase spending on education by 21 percent, and on health by 36 percent.
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This video discusses how the Indonesian districts of Blora and Bojonegoro are turning substantial resource revenues into sustainable development.
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Working Together (3:04) |
The Transparency Measure (2:25) |
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NRGI gathered oil company representatives, government officials and local civil society organizations for a workshop to foster communication between the groups. Joko Purwanto, Director of the Bojonegoro Institute, said this kind of communication was "a dream that could never come true."
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This video discusses how the Indonesian districts of Blora and Bojonegoro are turning substantial resource revenues into sustainable development.
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To play each video, click on the photo, or see NRGI video pages on YouTube and Vimeo.