Angola´s Extractive Industry . Impact & consequences

1. Angola´sExtractiveIndustry. Impact & consequences Johannesburg, May 2010. Belisário dos Santos ADRA and DW

2. The role of Extractive Industries in the Angolan economy 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!

3. Role of Extractive Industry, cont… 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

4. Key actors and their roles in EI Publicinstitutions: agencies responsible for managementof natural resources (SONANGOL, MinisteryofOil), agencies responsible for economicdevelopment, private- sector regulationandpublicadministration. Private sector: companiesoperatinginthecountry (domesticstate.ownedcompanies, international (state-ownedandprivate) companies, investorsandbusinessassociations

5. Key actors and their roles 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.

6. The impact of Extractive Industry Positive: Boost the country economy Rebuild the country after the long civil conflit High economic growth (between 1997-2008 the country GDP grew from $7.8 billion to some 83.4 billion) but what does it mean in terms of social economic development?

7. Negative impact 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

8. Efforts of Government in promoting transparency and accountability on EI 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.

9. The efforts of civil society to demand accountability in 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,…)

10. Challenges faced by civil society to promote 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

11. The key lessons learnt by CS in their advocacy work in the 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

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