The 2013 Resource Governance Index

The 2013 Resource Governance Index (published by the Revenue Watch Institute) is out. The top performing African countries include Ghana, Liberia?, Zambia and South Africa, with partial fulfillment. The bottom performing countries are Equatorial Guinea, Zimbabwe, South Sudan, the Democratic Republic of Congo and Mozambique.

The 58 nations included in the report “produce 85 percent of the world’s petroleum, 90 percent of diamonds and 80 percent of copper.” Ghana, where we are doing some evaluation  work on extractive sector transparency initiatives, is the best performing African country on the list. Image

More here. 

And in related news, The Africa Progress Report was released last week. The report details the massive loss of revenue by African governments through mismanagement – either by commission and/or omission – of extractive resources. For instance:

The report details five deals between 2010 and 2012, which cost the Democratic Republic of the Congo over US$1.3 billion in revenues through the undervaluation of assets and sale to foreign investors. This sum represents twice the annual health and education budgets of a country with one of the worst child mortality rates in the world and seven million pupils out of school.

The DRC alone is estimated to have 24 trillion dollars worth of untapped mineral resources.

The most bizarre case of resource management in Africa is Equatorial Guinea, a coutnry that is ranked 43rd on the global per capital GNI index but ranks 136th on the Human Development Index (2011).

Below is a map showing flows related to Africa’s vast resources:

RESOURCE-MAP

More on the DRC

CFR has a nice interview with Jason Stearns, DRC expert and author of Dancing in the Glory of Monsters. Jason in part notes that:

This crisis has brought about a shift in international donor policy for the region, in particular criticism and financial sanctions against Rwanda, which is something that’s new. However, using aid as leverage only makes sense in the context of a larger political process. Bashing Rwanda just for the sake of bashing Rwanda is not a solution. There needs to be a comprehensive political process into which that kind of pressure can be funneled and channeled. But there is no such process at the moment. What you have are talks mediated by a regional body—the International Conference for the Great Lakes Region (ICGLR)—that has the irony of being presided over by Uganda, which is itself playing a role in the conflict by supporting the M23. These talks have been largely limited to an evaluation of the March 23, 2009 peace deal, and the potential formation of a regional military force to deal with the FDLR and M23. But the causes of the crisis run much deeper and involve the failure of local governance, the weakness of the Congolese army, and the persistent meddling of neighboring countries in Congolese affairs.

This is precisely what informs my contention that there is too much focus on the international dimension of the conflict at the expense of the kinds of reforms that Congo needs in order to improve state capacity in Sub-Saharan Africa’s biggest country.

You can’t do business, implement a human rights regime, or even pretend to have democratic governance in a stateless environment (Unless, of course, you live in a state of nature in which everyone has capacity to defend themselves against aggression by others).

Some, including very serious and influential people, think that the solution to Congo’s weakness is to plea with its neighbors not to prey on it. I disagree. I believe that the best solution ought to be the strengthening of Congo so it can deter its neighbors. The international community just wasted a good opportunity to force a cornered Kabila to agree on a peace deal that is self-enforcing, i.e., that reflects the power balance in eastern Congo.

As things stand the continuation of the power vacuum in the Kivus will continue to attract rebels, foreign-sponsored or not.

More on this here.

Also here is a  glimpse of some of the actions by Kabila and his Kinshasa cabal which make it extremely unlikely that the situation in Congo will improve under his rule.

quick hits

The Christian Science Monitor reports on the robbery that most African governments (in this case in the DRC) continue to visit upon their people, unabated. Some of the deals they make sound so bad they’d embarrass a two year old.

Gertler was just 27 when he first became involved in the Congo in 2000, obtaining a monopoly of diamond exports (worth around $600 million) in return for $20 million. He had previously been involved in diamonds in Angola and he is the grandson of Moshe Schnitzer, the founder of the Israel Diamond Bourse. He is now one of the richest Israelis.

Industry insiders, however, suggest that the last big round of mining concession acquisitions happened just before the last elections and helped the president raise funds for his expensive campaign. The next elections are in 2011.

More on this here.

Also, Tech crunch has a nice piece on how the future belongs to the global south