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1. Fiscal dependence on extractive revenues: Measurement and concepts

Author:
Kyle McNabb
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The aims of this paper are twofold. It firstly identifies and discusses the extent to which public revenues from natural resources are adequately captured in existing cross-country revenue databases, before exploring the extent to which such data can be used to estimate countries’ fiscal dependence on extractives. I first discuss key conceptual, definitional and measurement issues, before comparing the coverage of key existing databases, notably the UNU-WIDER Government Revenue Dataset (GRD). I then propose a new measure of fiscal dependence on extractive revenues (FDE). Whilst a number of existing studies have attempted to better quantify countries’ resource dependence, to the best of my knowledge none has yet proposed an indicator that ties the idea of dependence to any outcomes. The FDE simply calculates the extent to which extractive-producing countries can fund day-to-day government spending with non-extractive revenues. I find that the FDE is strongly correlated with existing measures of extractive dependence but can ultimately tell us more about countries’ fiscal positions and resulting vulnerability to shocks to revenue or government spending.
Topic:
Natural Resources, Tax Systems, Extractive Industries, and Economic Dependence
Political Geography:
Africa, South Asia, and India

2. Optimizing the Role of the Extractive Industries in Domestic Revenue Mobilization: Analysis of Uganda's Mining, Oil, and Gas Revenue Generation and Management Laws

Author:
Dan Ngabirano and Onesmus Mugyenyi
Publication Date:
12-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
Dwindling aid and more recently the devastating effects of the COVID-19 global pandemic have rendered many African countries socially, politically, and economically vulnerable. Many are unable to effectively provide basic goods and services for their people, and their ability to pursue long-term development goals has been severely undermined. Given this situation, several African governments continue to fall behind in honouring their global commitments such as those made under the UN Sustainable Development Goals (SDGs) and the various regional and international human rights treaties that they are party to. To bridge the current funding gap, several African countries have turned to extensive borrowing with even more damaging consequences. In the face of this crisis, African countries have been urged to embrace and, in some instances, enhance their domestic revenue mobilization efforts as a more reliable and sustainable option. Uganda has heeded this call and in 2019, the country adopted a five-year Domestic Revenue Mobilization Strategy (DRMS). The key objective of this strategy is to improve revenue collection and lift the country’s tax-to-GDP ratio to between 16%-18%. More critically, DRMS recognizes the strategic role and potential contribution of oil, gas, and mineral revenues to national development. The DRMS underlines the need for the development of a strong extractive industries taxation fiscal regime. Given this reality, this study was conceived and set out to review and analyze the various laws, policies, and practices relevant to Uganda’s extractive industries fiscal regime, and to establish the extent to which these may enhance revenue generation, management, and equitable sharing of resource wealth. While focused on petroleum revenue generation, management and sharing in the Albertine region districts of Hoima, Buliisa and Kikuube, the study refers to experiences from gold mining in Mubende district. In this regard, the study established that gold mining in the district has for the most part been informal and unregulated. For this reason, both the central government and Mubende district local government have not been very successful in generating critical revenues from the largely artisanal and small-scale miners-dominated sector. Secondly, where revenue has been realized from gold mining in a few instances, it has been paid to the central government with less benefit to the district local government.
Topic:
Oil, Gas, Mining, Revenue Management, and Extractive Industries
Political Geography:
Uganda and Africa

3. An assessment of the Extractive Industries Transparency Initiative

Author:
Busisipho Siyobi
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
The Extractive Industries Transparency Initiative (EITI) Secretariat should take the lead in developing intervention mechanisms that ensure a strong civil society representation in the multi-stakeholder groups, to enable real public participation and obtain local legitimacy of the Initiative: This can be done through actively identifying and partnering with relevant grassroot civil society organisations that work directly with mining-affected communities. Implementing countries should work more collaboratively with the EITI to investigate any reported revenue discrepancies highlighted in the country-specific EITI reporting: This can be enforced by implementing countries in alignment with their guiding principles of regulatory bodies and the national EITI Multi-Stakeholder Group (MSG) in the effort to fight against corruption and ensure local ownership of the EITI process.
Topic:
Civil Society, Corruption, Natural Resources, Governance, Regulation, Mining, and Extractive Industries
Political Geography:
Africa

4. EITI: A Parliamentary Tool for Extractive Sector Governance in Liberia and Yemen

Author:
Laury Haytayan, Luke Smitham, and Femke Brouwer
Publication Date:
08-2014
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Liberia in West Africa and Yemen in the Middle East hold vast reserves of oil and other natural resources. As participants of the Extractives Industries Transparency Initiative (EITI), both states have voluntarily disclosed payments received from extractive companies in a standardized reporting process overseen by its own multi-stakeholder group (MSG). But unlike the majority of EITI participating countries, Liberia and Yemen have enlisted a key group of actors-parliamentarians-in their efforts to better govern resources and resource revenues. Lending credibility and capacity to the MSG, these political leaders have used their parliamentary mandate to improve policy and initiate reforms in the extractive sector, as well as facilitate EITI reporting and help oversee EITI compliance.
Topic:
Oil, Natural Resources, Governance, Transparency, and Extractive Industries
Political Geography:
Africa, Middle East, Yemen, and Liberia