ANGOLA´S EXTRACTIVE INDUSTRY. IMPACT & CONSEQUENCES Johannesburg, May Belisário dos Santos ADRA and DW

 Good Governance represents a big challenge for Angola oil economy.  The money from oil, gas and mine is often associated with poverty, conflit and corruption – “the resource curse”, because of lack transparency and accountability around the payments that companies are making to governments and revenues that governments are receiving from companies! The role of Extractive Industries in the Angolan economy

 Extratctive Industry is the main “fuel” of the Angolan economy  Angola still relies on a centrally controlled major revenue stream and is not reliant on domestic taxation or a diversified economy to function.  Dutch disease Role of Extractive Industry, cont…

 Public institutions: agencies responsible for management of natural resources (SONANGOL, Ministery of Oil), agencies responsible for economic development, private- sector regulation and public administration.  Private sector: companies operating in the country (domestic state.owned companies, international (state-owned and private) companies, investors and business associations Key actors and their roles in EI

 Civil society:( community-based organisations, NGOs, academic and researchers, anti-corruption campaigners (Rafael Marques), IMF, Human Rights Watch (reporting scandals on EI ).  Basically, there is not enough transparency or political space for the public to hold the Extractive Industries accountable. Key actors and their roles

Positive:  Boost the country economy  Rebuild the country after the long civil conflit  High economic growth (between the country GDP grew from $7.8 billion to some 83.4 billion) but what does it mean in terms of social economic development? The impact of Extractive Industry

 Conflits in Cabinda and Lundas,Enviromental risks  Corruption and missmanagement of public resources.  Less pressure from international community in holding the Government to be more transparent and accountable  Poverty  Lack of participatory democracy on decision-making Negative impact

 The Angolan Government has missmanaged country´s substancial oil revenues and used its control over wealth to isnulate itself from public scrutiny.  The Government has recently introduced some important reforms in oil sector transparency, but far more need to be done in order to curb corrution and hold the Government more accountable to its citizens. Efforts of Government in promoting transparency and accountability on EI

 There is not enough transparency or political space for the public to hold the Extractive Industries accountable. This is due to some external (IMF, international community) and internal pressure.  Many NGOs and activists have urged the Angolan Government to put their discourses and policies into concrete action (zero country tolerance,…) The efforts of civil society to demand accountability in EI

 To influence the Angolan Government to adhere to the EITI, although the government have applied some principles.  To continue investigating bad practices on oil revenues management  To stablish a strong public space in order to engage civil society organisation and government in decision-making processes Challenges faced by civil society to promote accountability in EI

 CS needs to work more closely with private sector as a new opportunity  Sharing responsabilities with all stakeholders on EI operations is more effective in poverty reduction  The fundamental approach of public policy on EI implies to have: - Stablished public institutions that work The key lessons learnt by CS in their advocacy work in the EI

- Culture of public administration - Principles of sharing power between government, CS and private sector. - The Angolan government need to establish CSR entities Lessons learnt by CS, cont…