1.0 Introduction. Express solidarity with Canadian CSOs Thank organisers for the invitation. Hope I am able to live up to your expectation

Transcription

1 DRAFT Democratisation and Governance: Perspectives of the Mining Sector in Africa A Paper Presented at Africa-Canada Forum April 6 th, 2006, Ottawa, Canada By Abdulai Darimani 1.0 Introduction Express solidarity with Canadian CSOs Thank organisers for the invitation. Hope I am able to live up to your expectation The purpose of this paper is to highlight some of the critical issues of participation in emerging democracies in Africa. The discussion is located in the context of mineral-led economic development. In doing so, I shall try to establish the relationship between governance and mining and proceed to examine in brief the current democratic and governance dispensation on the continent. I shall also present a brief assessment about how professed democratic and governance principles contradict the realities and development aspirations of citizens of mineral-endowed African countries and conclude with some recommendations. The central argument of my discussion is that while democratisation is somehow widespread in Africa it has not been translated into the type and quality of governance capable of delivering the development aspirations of the people of the continent., precisely so because democracy and governance as they relate to the extractive sector are promoted on terms and agenda dictated by external forces in collaboration with local elites. In so doing, governance is often interpreted as and reduced to merely a technical exercise aimed at providing predictability and certainty for investors-not excluding repression and not necessarily even including the guarantee of security or fundamental rights, or the provision of basic services, for the population. 2.0 Democracy, governance and mining. Democracy and governance are very much interrelated concepts in terms of the delivery of justice, development and the distribution of power. They both connote and entail intra-and intergeneration equity, accountability, transparency, and participation. In fact, transparency and participation are key elements for the administration of governance architecture that promote and ensure not only intra-and inter-generation equity and accountability but also the popular will and interest of citizens. Communities on the fringes of mining projects, mining companies and the state are the three stakeholders that have direct material interest in mining. The pre-eminence role of the state relative to communities and the industry makes democracy and governance imperative and compelling in any discourse around mining. 1

2 Firstly, mineral resources are public goods because they are vested in the state in trust for and on behalf of the citizens. The absolute power of the state in compulsory acquisition of land for purposes of mining. Mineral resources have been central in the economic development of many African countries. The continent as a whole holds proportionately high potential reserves of minerals resources-gold, diamonds, bauxite, manganese, and salt among others. The expropriation of mineral resources has both manifest and latent consequences: it results in significant disruption not only the diversity of the environment but also the social and political organisation of a people especially those on the fringes of the mines. The state is the centre for policy creation and institutional development and mechanisms for regulating the extraction and distribution of the mineral wealth. All these demand transparency and participation, key ingredients of democracy and governance, to promote and ensure the equal distribution of the mineral wealth and environmental sustainability. 3.0 Current situation There is now a trend of democratization across the entire continent of Africa. There has been a routine of some key elements of a democratic system, including more frequent general elections, somewhat more robust political parties, and a relatively freer press. There are many governments in Africa today that are democratically elected with the legislative branch consisting of popularly elected national assemblies. Examples include elections in Egypt, Ghana, South Africa, and recently Liberia, just to mention but a few. Similarly, there are somewhat democratic institutions such as the Africa Peer Review Mechanism at the regional level, and the AU/ECOWAS parliaments. At the national level, there are Commissions for Human Rights, Offices of Accountability and Certification. These are all signals of democratisation and good governance. However, the practice of true democracy and good governance is still proven to be elusive. Institutional avenues for broad-based popular expression have remained weak and narrow. National governments and institutions resemble movements and factions that do not generally articulate national aspirations and concerns. In effect, non-elected institutions continue to hold sway over their elected counterparts. The administration of the state continues to be dominated by small bureaucratic local elite dedicated to advancing their own interests and that of their agents largely to the exclusion of the larger citizenry. State structures are all being deeply penetrated by powerful vested interests. Therefore, even as the local elite and their agents all profess some commitment to greater transparency and participation, they ultimately fall short of popular expectations. Political officials often opt for a controlled form of democracy and thus see governance less as a participatory affair than as something to be steered from board rooms. 2

3 4.0 Consequences and struggles No where is this more manifest than the extractive sector (mining) in Africa. The pressing need for the few political elite to consolidate power and to defend the status-quo often prompts the arbitrary use of government administrative machinery not only to capture the mineral resources but also to protect and defend their agents who have insatiable demand for Africa s mineral wealth. This is clearly reflected and manifested in two main areas. One is the relationship between government and international actors and processes, and the other is the policy and decision-making processes. The relationship between African governments and their northern counterparts and other multilateral institutions has been unbalance. The northern governments and the multilateral institutions such as the World Bank and the IMF view African economies as ailing and that African leadership have no idea about how to heal their own economies. Knowing what they constantly tell African governments what they should do, how to do it and what rules they should follow. There is also a commitment on the part of those who prescribe the development path to punish those governments who fault or fail to follow the rules. Thus in the relationship between African governments and international actors and processes the state machinery is often deployed to diminish national aspirations while up-holding that of Trans-national actors. World Bank and IMF prescriptive policies-liberalisation, privatisation, technical support, and project support. NEPAD-first launched out of Africa, AMP on-going, Africa Peer Review a windowdressing of accountability. WAGP political risk guarantee, Ghana locks in to buy gas for 25 years. Energy and Petroleum Bill pushed by IMF/World Bank to be passed into law within 24hours. Newmont stability agreement with the Government of Ghana. Joe Clarke and Akosombo disilting project, a questionable deal. Policy making processes. The policymaking and institutional development processes are unclear, unpredictable and untransparent and therefore lack any meaningful participation. Because a popular government or a democratic government is the one that response to the call of international actors, in which case citizens participation is either secondary or marginal to policy-creation and decision-making. The space is thus limited and restricted between leadership and international actors. Revisions of Ghana s mining code Zambia national environment policy written under pressure from the WBG Sierra Leone mining policy written by consultatnt from the WBG Ghana s Petroleum Bill given 24hr public notice and get passed following pressure to fulfil HIPC conditionality. Mali s mining law about to be revised following pressure from TNCs as opposed to pressure from citizens. 3

4 Such relationship and practices of the state underline the system's lack of participation, accountability and developmental approach that is sensitive to the specific concerns and priorities of the public. The discontent of communities affected by mining is demonstrated by the different levels of struggles across Africa. The state response to these struggles has often been rapid, repressive and hostile. Many times state machinery is used as lightning rods to deflect popular dissent, and coercion has frequently eclipsed negotiation between communities and transnational mining companies. Niger Delta community take Shell Plant Prestea and military Congo DR and signing of contracts Tanzania and Barricks Corporation Newmont company and compensation schemes US$7 Koidu Holdings in Sierra Leone. Nevsun/Anglogold in Kubi Cyanide spillage and Minister of Environment on only 52 fishes died. 4.0 Challenges of participation On the stand point of mineral-led economic development one can conclude with reasonable degree of accuracy that the predicted gains from mining sector reforms in Africa have proved to be exaggerated. For most mineral endowed African countries, the liberalization of their mining sectors is one in which the prosperity of transnational corporations, the political elite and their international agents reproduces increased poverty, heightened environmental degradation and social dislocation for the larger population of individual national economies. The liberalization process is based on the assumption that all parties involved and or affected by mining projects (the state, the investor, and local communities) shall, through direct and spill-overs, benefit. However, the logic of liberalization separates the foreign investors by a fault line, and selectively accords them enormous relative advantages and privileges. Despite these telling realities such relationship and practices and their unattractive outcomes are set to continue. Indeed, multilateral and bilateral donors as well as transnational mining companies are consolidating their positions and up-scaling their power over and above citizens interest. For instance, the GATS rules under the WTO are being extended to apply to the mining sector. This is because the notion of democracy and governance is rooted on neo-liberal paradigm; where neo-liberalism is presupposed as a natural backdrop to political and policy decisionmaking. This presumption not only creates instrumental thinking in policy making and choices but equally obstructs the value of raising legitimate questions that challenge liberalization, and about the very nature of the state, its purposes, obligations and responsibilities towards citizens. Secondly, and flowing from the first is the fact that the state turn to market reforms has weakened its capacity to create the enabling environment for transparent public policy and decision-making processes. 4

5 In situations like this, the real conversation expected to lead to truly functional participation is systematically distorted thus preventing legitimate challenges and alternatives from being made. The challenge we face is how to off-load the concentration of power and ensure its proper redistribution. We can do so in a number of ways: Challenging the contradiction between the professed democracy, good governance and actual practices, and questioning also the principles of good governance. Proactively creating alternative world view and framing them in perspectives which are consistent with the living realities of ordinary people. Recognizing the diversity among progressive civil actors as well as the differential capacities. Sensitization, mobilization and organization of critical mass around the adverse consequences of extractive activities Detailed and critical research to facilitate the creation of alternative policies and public mobilization. 5