Context
The resource wealth of Liberia, Sierra Leone, Côte d'Ivoire and Guinea ought to be an enormous opportunity for these countries. In reality, however, the treasures buried within their land are often more of a curse than a blessing. Not long ago, the struggle for diamonds and other raw materials was fuelling civil wars in Liberia and Sierra Leone. Even today, the exploitation of mineral resources such as diamonds, iron ore, oil and gold in the region still has a destabilising effect. The state continues to battle with institutional shortcomings and corruption, while the social and ecological costs of extracting raw materials contribute to dissatisfaction and conflicts among the population.
The revenue from the raw materials is not reaching the population or bringing about increased prosperity and greater sustainable development. The objective must be for these countries to organise the mining of their raw materials more effectively in the medium term so that they are less dependent on foreign assistance in future.
Objective
In the fragile states of West Africa, the conditions – as shaped by the state, the private sector and civil society – for using mineral resources in ways that benefit the population have improved.
Approach
The project advises the partner countries on how they can manage their natural resources efficiently and sustainably by altering the political, economic and legal conditions. For instance, a higher level of transparency with regard to public revenue and greater accountability reduce the incentives for corruption in the extractive sector.
Relevant actors in ministries and regional and local administrations receive training from the project team on how they can increase tax revenue from the extractive sector. The state can use this revenue to reduce poverty and stimulate development in the country. The project advises the governments on using their mineral resources for the sustainable development of their countries. The project team trains individuals working in the government, civil society, the private sector and regional institutions and initiates networks among all those involved.
At local level, the project supports dialogue between the mining companies and local communities with a view to reducing existing conflicts and encouraging development-oriented cooperation. In some mining areas, the project is drawing up local development plans together with the population, local authorities and companies.
In addition, the project is kick-starting a regional dialogue and exchange on resource governance in the extractive sector via the Mano River Union, the intergovernmental economic organisation based in West Africa.
In Liberia, elements of the project work are cofinanced by Australia.
Results
Sierra Leone has established a mining cadastre system linked to a publicly accessible online database in which data on a total of 857 mining licences are managed. This means that all citizens can see what public revenue is coming from the extractive sector and the population can monitor what the government is spending this money on. In the fiscal year 2010/11 alone, the authorities collected five million US dollars from the mining industry in outstanding licence fees. Following the positive mining developments in Sierra Leone, the Board of the international Extractive Industries Transparency Initiative (EITI) declared the country EITI compliant.
Liberia is modernising its mining laws and making fundamental changes. The government introduced a management system for the authority that grants mining licences, and as a result the licensing process is functioning more effectively. In each project country, an information centre has been established in which interested parties can find academic publications on the mining industry. Twelve local development plans in conflict-prone mining areas have been developed by local mining communities. On this basis, the government in Sierra Leone has adopted a standard procedure for local development planning. In Liberia, this activity is being expanded in partnership with Welthungerhilfe. The Mano River Union has integrated development-related objectives for the mining sector into its Strategic Plan 2010-2020.