This presentation highlights the concepts of mismanagement, public trust and tragedy of the commons. It uses three clear examples to describe natural resources mismanagement at state, business and community levels. Root causes of NR mismanagement are then explored as well as solutions to the key issues raised. I completes by highlighting the role Natural Resource and Environmental Governance student can play in sustainable NRM.

1. Mismanagement of Natural Resources:
States, Business and Local Communities
Kumeh, Mensah Eric
Asante, Joseph
Neequaye, Trudy Emily
Dolphine, Delphina Wihelmina

2.  Introduction: Background and Rationale
 Concept and Definition
 Mismanagement
 Case Studies of NR Mismanagement
 The “Paradox of Plenty” in Equatorial Guinea
 The CSM Plague in Ghana
 Unsustainable Charcoal Production in Ghanaian
Communities
 Root Causes of NR Mismanagement
 “Removing the Tumor” not “Alleviating the Pain”
 Tackling NR Mismanagement: The role of NREG Graduates
 Conclusion
 References
Presentation Outline

3. ‘Without natural resources life itself is impossible. From birth to
death, natural resources, transformed for human use, feed,
clothe, shelter, and transport us. Upon them we depend for
every material necessity, comfort, convenience, and protection
in our lives. Without abundant resources prosperity is out of
reach’. (Gifford Pinchot, Unknown)
Introduction: Background

4.  Human survival and economic growth are inextricably linked to
natural resources management. Proper management ensures:
 Economic development
 Accountability on resource rent
 Fair and equitable share of resource benefit
 Reduced poverty
 Resources are therefore a blessing for the countries that possess
them only if properly managed.
 Research correlating resource endowment with economic
growth shows that they are not always positively correlated
(Corrigan, 2015).
Introduction: Rationale

5.  Management is the attainment of desired goal (economic,
social, environmental) in an effective and efficient manner
through leading, controlling and coordination resources.
(Sampson and Daft, 2012).
 Failure to attain desired goal resulting from inefficiencies
with regards to leading, controlling and coordinating implies
mismanagement.
Concepts and Definitions: Mismanagement

6.  Underdevelopment
 Abject poverty
 Poor transparency and accountability on resource rent
 Inequitable benefit distribution
Indicators of Mismanagement

7. Case Studies of NR Mismanagement
For ease of understanding, three peculiar cases of NR
mismanagement are presented:
 The “Paradox of Plenty” in Equatorial Guinea (State)
 The “CSM” Plague in Ghana (Business)
 Unsustainable Charcoal in Ghanaian Communities
(communities)

8.  Public Trust Doctrine was put in the public forum by the
ancient Roman Empire.
 “certain resources like air, sea, waters and the forests have
such a great importance to the people as a whole that it
would be wholly unjustified to make them a subject of
private ownership” (Nshala, 2002).
 The Ghanaian legal system-based on English common law
includes the public trust doctrine as part of its jurisprudence.
 The state is the trustee of all natural resources, which are by
nature meant for public use and enjoyment
(Kameri-Mbote, 2007).
Public Trust Doctrine

9.  Every mineral in its natural state in, under or upon any land in
Ghana, rivers, streams … is the property of the republic of
Ghana and shall be vested in the President on behalf of, and
in trust for the people of Ghana (Constitution, Article 257:6).
 “The most fundamental duty that a Trustee has is the duty
of loyalty - the obligation to act solely in the interest of the
beneficiaries. The trustee also has a duty to use care and skill
to preserve the trust property. In addition, the trustee has a
duty to furnish information to the beneficiaries, a duty to
make the trust productive, and a duty to deal impartially
with beneficiaries. In meeting its duties, the trustee must act
prudently, diligently, and in good faith.” (Paul; 1996 In:
Nshala, 2002).
Public Trust Doctrine

10.  Situation when abundant natural resources contribute to
economic stagnation because capital and labor generate
increases in tradable exports, but fail to strengthen
knowledge, skills and expertise of citizens (UNDP, 2014).
 At the heart of this menace (resource curse) is
underdevelopment, rapacious corruption, institutional
erosion and civil conflicts (Anshasy and Katsaiti, 2013;
Kolstad and Soreide, 2009)
 Papua New Guinea
 Equatorial Guinea
 Nigeria
The “Paradox of Plenty” in Equatorial Guinea

11. Resource Endowment
(PNG)
Source: UNDP, 2013.

12. Source: World Bank, 2015.

13.  Chainsaw milling refers to the on-site conversion of logs into
lumber for commercial purposes using chainsaws.
 CSM was prohibited in 1998 but remains widespread despite
measures put in place by government to enforce the ban
(Marfo, 2010).
 Ghana loses about GHC 25 million annually in stumpage
revenue from trees illegally harvested by chainsaw
operators.
 Principal causes of CSM are: unclear policies, corruption and
weak governance, political interference and lack of political
will (Marfo and Nutakor, 2009).
The “CSM” Plague in Ghana

14. Pictures

15. “Each man is locked into a system that compels him to increase
his herd without limit - in a world that is limited. Ruin is the
destination toward which all men rush, each pursuing his own
interest in a society that believes in the freedom of the
commons”
(Harden, 1968).
Tragedy of the Commons

16.  An estimated 400,000 people who support over one million
dependents, are engaged in charcoal production which is
primary fed by wood resources from open access
(Energy Commission, 2006).
 Locals (indigenes and migrants) pay a token to traditional
leaders to enable them fell and carbonate trees
(Brobbey, et al., 2015 unpublished).
 Accelerated transitional forest and savannah degradation,
increased incidences of wildfires and drying up of water
bodies.
Unsustainable Charcoal Production in Ghanaian
Communities

17. Charcoal Production
in Ghana

18.  Inconsistent policies
 Profit oriented resource extraction
 Non existence of transparency and accountability
mechanisms
 Inter-sectorial conflicts
Root Causes of NR Mismanagement

19.  Weak state institutions
 Poor law enforcement
 Corruption
 Lack of capacity
 Poor governance
Root Causes of NR Mismanagement

20.  Clear legal institutional and policy frameworks – use
international expertise when negotiation over terms of new
resource development or improvement of existing
agreements.
 People centered exploration and extraction of resources -
redefine and concretize benefit sharing schemes, establish
grievance mechanism.
 Advanced human development and strengthened social
capital – allocate revenue to areas of high social return e.g.
education, health, water, sanitation, etc.
 Prudent revenue collection - better transparency and
accountability for revenue flows, exhibit greater fiscal
restrain, institutionalize periodic reviews, etc.
“Removing the Tumor, not Alleviating the Pain”

21.  The world thrives of empirical information; technical
decisions are based on empirical information.
 How can local communities be positioned on a pedestal to
demand for greater accountability on the use of resource
rents?
 Why not “us”? Is state management of natural resources the
only way out?
 How can benefit sharing schemes be redefined and
concretized to entrench community rights?
Tackling NR Mismanagement: The Role NREG Grads

22.  Mismanagement of natural resources result in resource
curse in many natural resource endowed countries.
 This results in underdevelopment, abject poverty, poor
transparency and accountability on resource rent and
inequitable benefit distribution.
 Natural resources are therefore a blessing for countries that
possess them and are able to manage them well bringing all
stakeholders on board.
 Mismanagement of natural resource has impacts on political,
economic and environmental situations of a country
Conclusions

23.  Anshasy, A. A. El., and Katsaiti, M. S., 2013. Natural resources
and fiscal performance: Does good governance matter?
Journal of Macroeconomics 37 (2013) 285–298.
 Brobbey, L.K., Asante, J., Sampong K.E., Kumeh, E.M., and
Nketiah K.S., 2015. Securing Rights to wood resources for
charcoal production in Ghana. IIED small and medium forest
enterprise Series, Tropenbos International Ghana.
 Corrigan, C. C., 2013. Breaking the resource curse:
Transparency in the natural resource sector and extractive
industry initiative. Resource Policy 40 (2014) 17 – 30.
 Hardin, G., 1968. The tragedy of the commons. Science, New
Series, Vol. 162, No 3859. pp 1243-1248.
References

24.  Kameri-Mbote, P., 2007. The use of the Public Trust Doctrine
in Environmental Law’, 3/2 Law, Environment and
Development Journal (2007), p. 195.
 Kolstad, I. and Soreide, T., 2009. Corruption in natural
resource management: Implications for policy makers.
Resources Policy 34 (2009) 214–226.
 Marfo, E. and E. Nutakor. 2009. The social and political
environment for the enforcement of the chainsaw milling
ban. In Marfo, E., K.A. Adam and B.D. Obiri (eds.). Ghana case
study of illegal chainsaw milling. Developing alternatives to
illegal chainsaw milling through multi-stakeholder dialogue
in Ghana and Guyana project. FORIG Research Report (CSIR-
FORIG/TR/EM;KAA;BDO/2009/18).
References

25.  Nshala, R., 2002. Management of Natural Resources in
Tanzania: Is the Public Trust Doctrine of Any Relevance?
Available at
http://dlc.dlib.indiana.edu/dlc/bitstream/handle/10535/1405/n
shalar042400.pdf?sequence=1
 Paul, T. J., 1996. The Public Trust Doctrine; Who Has the
Burden of Proof. In: Nshala, R., 2002. Management of
Natural Resources in Tanzania: Is the Public Trust Doctrine of
Any Relevance?
 Sampson and Daft, 2012. The Fundamentals of Management.
 UNDP, 2013. Global development report 2013.
 World Bank, 2015. Gross Domestic Products. Available at
www.data.worldbank.org/country/papua-new-guinea
References