Le pétrole et le développement humain, Dr John O. Kakonge

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International Oil and Gas Resource Management Seminar, April 27-30, 2008; held in Libreville, Gabon

International Oil and Gas Resource Management Seminar, April 27-30, 2008; held in Libreville, Gabon

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  • 1. The Challenges of Human Development in Oil and Gas Economies Dr. John O. Kakonge Senior Deputy Director Special Unit for South-South Cooperation UNDP New York Seminar on the Negotiation and Implementation of Oil, Gas and Mining Contracts Libreville, Gabon April 2008
  • 2. Discussion Points
    • Definitions
    • Human Development Challenges in Oil and Gas Economies
    • UNDP Focus Areas
      • Public Private Partnership and Corporate Social Responsibility
      • Capacity Building
      • Knowledge Sharing and Policy Dialogue
      • South-South Cooperation
    • Conclusions
  • 3. Definitions
    • For UNDP, promoting human development means expanding peoples’ choices for improving their lives or livelihood.
    • These choices include:
      • access and availability to meaningful jobs and employment
      • improved educational opportunities
      • empowering the disadvantaged
      • prevention and/or quality treatment of diseases such as HIV/AIDS, malaria and tuberculosis
      • clean environment and habitat for all
      • improved governance
  • 4. HD Challenges in Hydrocarbon Economies
    • Energy has become the defining issue of our age in national, regional and global contexts of our interdependent world, and developing countries will have an important role to play in shaping the outcome.
    • Within the next 3 to 7 years as many as 30 new oil-producing countries could reach commercial exploitation of their oil and gas sectors — all of which are developing countries.
    • Even in the new energy era, it is not necessarily a blessing for a country to be endowed with petroleum resources. It is how governments arrange for their resources to be extracted and how revenues are used that determine the success or failure of being a petroleum-endowed state.
  • 5. HD Challenges in Hydrocarbon Economies, cont.
    • Effective macro-economic policy for oil-endowed countries must be given high priority attention if governments are to manage the wider economy and ensure that oil revenues are used in a positive and sustainable manner.
    • Effective policy requirement include:
      • a rational rate of public sector investments to increase productivity and employment in the non-oil sectors
      • Promotion of human resource development and skills formation
      • Policies and actions to encourage competitiveness across the economy
      • Open and transparent financial, legal and regulatory systems
  • 6. UNDP Focus Area: Private Sector Partnerships and Corporate Social Responsibility
    • UNDP has been working closely with a number of oil and gas companies to improve the human development situation of various communities in our programme countries.
    • Madagascar -- the Growing Sustainable Business Initiative
    • (UNDP / Total and EDF)
    • Sierra Leone / Liberia -- Diamonds for Development initiative
    • (UNDP / Kimberly process)
    • Angola – small business development
    • (UNDP / Chevron)
    • (Kazakhstan, China – small business underwriting
    • (UNDP / Citibank)
  • 7. UNDP Focus Area: Capacity Building
    • UNDP has been working closely with its programme countries in terms of national development goals and strategies .
    • In Cambodia , support technical, analytical and implementing capacities of the country’s civil service by assisting in the creation of several training modules on capital budgeting, public-sector management and risk management.
    • UNDP has worked, in partnership with other organizations and donors, in the establishment of national oil funds created for the purposes of managing oil revenues and ensuring the allocation of benefits towards human development goals as part of the Extractive Industries Transparency Initiative (EITI) .
    • East Timor is one such country that has established a permanent Petroleum Fund.
  • 8. UNDP Focus Area: Knowledge-Sharing and Policy Dialogue
    • UNDP role providing technical support and world-class expertise in helping developing countries examine policy questions of specific interest to them:
    • In Azerbaijan , supported the government in the preparation of a report titled “Turning Black Gold into Human Gold”. The report emphasized the importance of developing an internationally competitive non-oil sector and investing in human capital .
    • In Nigeria , supported the government to prepare the “2006 Niger Delta Human Development Report” to respond to the tension between the management of natural resources and human development concerns .
  • 9. UNDP Focus Area: South-South Cooperation
    • Sharing of solutions and experiences among developing countries also constitutes a major concern for UNDP in its efforts to reconcile human development with the challenges presented by oil and gas industries in these countries.
    • In recent meetings, UNDP, through the Special Unit for South-South Cooperation, has been able to bring together established oil producers in the South alongside new and emerging oil-exporting countries (Qatar, September 2007).
    • UNDP Regional Programme has just approved a programme to support the African countries in the management of their natural resources, including oil and gas.
    • Special Unit for South-South Cooperation is also developing a sub-regional project to assist in the capacity-building of emerging oil- and gas-producing countries in the South, including those in Africa. The training will be offered within the institutions of the South.
  • 10. Conclusions
    • Oil and gas are indispensable and indisputable attributes of modern life in both industrialized and developing countries alike.
    • The hydrocarbon sector is fraught with potential political, economic, environmental and social consequences that can have potential negative impacts on a country and its citizens.
    • Managed well, oil and gas resources offer developing countries great opportunities to accelerate the pace of human development.
    • Managed poorly, oil and gas revenues may in fact impede human development and worsen income inequality.