Goodness knows we need many eyes watching whether revenue is managed effectively in the U.S. Perhaps President Obama should create a department of Revenue Watching in addition to the Recovery Act Transparency and Accountability Board. In the meantime, the non-profit Revenue Watch Institute (RWI) is focused on countries such as Liberia, where the responsible management of oil, gas and mineral resources is crucial for the public good.
RWI believes that with effective revenue management, citizen engagement and real government accountability, natural resource wealth can drive development and national growth. The Revenue Watch Institute is the only organization dedicated exclusively to addressing the special problems of oil, gas and mining-dependent countries-countries where poverty, conflict and corruption too often converge.
Last month RWI issued a report called “Getting a Better Deal from the Extractive Sector: Concessions Negotiation in Liberia, 2006-2008.” The report gives hope that all stakeholders can benefit from resource extraction. In 2006, as part of its wider reconstruction effort, the government of Liberia conducted a review and renegotiation of its contracts with the Firestone rubber company and the ArcelorMittal steel company. The resulting amended contracts offered Liberia significant gains, in areas from taxes and corporate governance rules to environmental and social issues such as housing and education. The contracts were accepted by Liberia’s legislature and general public and also by Firestone and ArcelorMittal.
According to RWI, the successful negotiations have caught the attention of other African governments seeking to ensure that their countries maximize value from natural resource concessions.
Recent Comments