Buharry, As usual, I enjoy reading your postings. You have a wonderful way of putting your points across. I look forward to more of these objective and well-balanced opinions. Best regards, Ablie Njie- Lekbi Atlanta >From: "M. Gassama" <[log in to unmask]> >Reply-To: [log in to unmask] >To: [log in to unmask] >Subject: [>-<] Gambian Oil: Blessing Or Curse? >Date: Sun, 22 Feb 2004 02:53:15 +0100 (CET) > >[ This e-mail is posted to Gambia|Post e-Gathering by "M. Gassama" ><[log in to unmask]> ] > > >The recent announcement by Yaya Jammeh that huge oil deposits have >been >discovered in The Gambia has suddenly provided a ray of economic hope >in a country that has been engulfed in economic grief. Hopes have been >elevated and expectations raised that the blessing of such an oil >find >would mean the end of the economic troubles that have plagued the >country. The discovery of oil in The Gambia does not however, in >itself, translate into the economic upturn that many have dreamed of. >It can as easily turn into a nightmare that transcends the economic >realm. As examples abound, the discovery of oil and natural resources >in some countries has brought about profound economic, social and >other >changes that have resulted in the upliftment of the citizens of such >countries. As examples also abound, such discoveries have also brought >about economic, social and political quagmires for some countries >resulting in civil wars, economic and social disasters. The discovery >of oil in a country is the initial step in a long process that is >affected by a host of factors, which contribute to its ultimate >potential as a factor in the socio-economic life of the country. With >this in mind, will the discovery of oil in The Gambia be a blessing or >a curse? The answer to this question depends to a large extent on how >the government deals with the whole process right from the exploration >stages to the management and distribution of the derived revenue. > >The benefits that the discovery of oil in The Gambia can bring to the >country are numerous. Among them are the increment in the country’s >revenue. This will avail the government the opportunity to implement >programs that will improve the living standards of the people. These >programs can take the form of improved health care, education and >other >facilities that will directly impact the lives of Gambians and raise >them from their present wretched situation. > >The creation of an oil industry will bring with it parallel industries >that will expand the country’s economy. Construction of oil >facilities, transportation of oil, servicing of the facilities and >those working in the industry will mean the creation of jobs that will >drastically reduce the current high employment levels. > >Another potential benefit of oil in The Gambia is the improvement of >the governance and the human rights environment. It has been shown >time >and again that the economic situation or performance of a country has >a >direct bearing on the governance situation and human rights in the >said >country. If a country is doing well and its citizens are generally >looked after fairly well, the potential for conflict is greatly >reduced >and the government can put into place mechanisms that ensure good >governance and the respect for human rights. > >Yet another potential benefit of oil for the country is the provision >of revenue to improve the infrastructure and other industries. Better >electricity facilities that ensure uninterrupted supplies, better >roads, better telecommunication facilities etc. With more revenue, the >government and private individuals who benefit from the oil industry >can also invest in the country’s other sectors such as agriculture and >tourism. > >The discovery of oil in The Gambia does also have the potential to be >a >curse for the country. The extraction of oil and the subsequent >processes will in all probability bring about revenue on a hitherto >unknown scale in the country. This will have the potential to fuel >greed and the danger of trying to control the revenue without >accountability. The process will be mired in a lack of transparency as >revenue, processes and resources will be dubiously handled. This will >probably lead to the marginalisation of some parts of society who will >demand a more transparent way of handling the oil and the derived >revenue while those in charge will devise ways and means of staying >more in control. These ways and means might take repressive forms, >which will probably lead to instability. > >The discovery of oil can also spell the death of diversification in >the >country’s economy. The revenue derived from oil and the potential to >make more quicker can result in the government and private individuals >relying and investing more in the industry at the detriment of the >other sectors. This is dangerous in that the failure of this industry >or the drying up of the wells will leave the country in limbo. > >Another potential danger is the provision of increased revenue that >can >be used to provide the means to repress the Gambian people. The >availability of oil revenue to potentially address the socio-economic >ills of the country will in all probability spur the Gambian people to >demand better services and governance. Failure to provide that might >mean resistance from the population, which might in turn spur the >government to employ more repressive methods. The curse of the oil in >this scenario will be the increased revenue at the disposal of the >government that will be used to purchase more arms and other equipment >for use by the security forces to repress genuine dissent. On top of >this, it might reinforce an unaccountable and undemocratic government >and allows its centrally controlled revenue to act as a means of >engaging in self-preservation at the expense of the national interest. > >As greed has the potential to encourage the desire for perpetuation of >the status quo, the success of few individuals might make them want to >concentrate economic power and hold on to it at all costs. This will >lead to more corruption, greed, refusal to share or cede economic >power >and the marginalisation of some parts of the population. As economic >power eventually translates to political power, this tiny group might >invest resources to perpetuate the status quo that might be repressive >and antithetic to the social, political and economic stability of the >country. > >The potential negative effects of oil exploration, extraction, >processing, transportation etc. on the environment should be cause for >concern. Air, marine and land pollution and the inherent dangers to >human, plant and wildlife health can turn out to be true nightmares. >Oil spills, toxic fumes from machinery, deforestation and other >disasters that can follow oil production can result in the increase in >the incidence of cancer, air passage illnesses, contamination of >seafood resulting in loss of livelihood and devastation of marine >life. >This can in turn be devastating for the people and environment. > >In an environment where foreign oil companies are not properly >regulated and controlled, the environmental and social costs can be >high. The use of outdated equipment and technologies that can have >harmful side effects on the environment will be counterproductive. As >these technologies and processes degrade the environment, the >potential >for conflict between these international companies and the local >population grows. A classic example of this is the clash between the >Ogoni people and the multinational companies operating in Nigeria. > >Another factor that can have unwanted effects is the issue of >compensation. Since the precise location of the oil is not widely >known, the issue of whether there are people and communities to >compensate is premature. If the oil is found in areas inhabited by >people and communities and they are not properly compensated for their >lands and the proceeds from the oil are not used to develop their >communities, they will feel marginalized and this might lead to >conflicts that can have destabilizing effects on the country. > >Since there are potential blessings and curses related to the >discovery >of oil in The Gambia, what can the government do to ensure that the >country benefits from the production of the oil? The first thing would >be ensure equitable distribution of the revenue. The government should >institute policies and programs to address, provide for and improve >the >socio-economic situation of the people of The Gambia. The revenue >should be seen to be invested in the people and infrastructure of the >country and should be seen to be beneficial to the people. > >The second would be to devise ways and means of creating transparent >processes and systems that would cut corruption at all stages of the >oil production process from the exploration to the accounting and >auditing stages. Independent institutions such as the judiciary can be >made use of to check corruption. These institutions should be >empowered >to function as truly independent bodies and protected from undue and >unwarranted interference from the executive and private individuals. A >board to award contracts in the technical, production services in a >transparent and process-driven manner should be instituted and >protected against undue manipulation and interference. > >Clear and strict guidelines should be issued to and enforced against >foreign companies involved in the production process to ensure the use >of up-to-date technologies with the aim of protecting the environment. >The livelihoods of the local economies should be protected by those >involved in oil production and the local communities should be >involved >in energy policy making. The foreign companies should be encouraged to >invest in the local communities in order to be seen to be caring for >their well-being and not just exploiters. This will help to avoid >situations seen in Nigeria and other countries. > >A reserve for future governments and a fund for future generations >should be instituted as is the case in Norway. This will help to >ensure >that future governments will have resources to continue development >work and that future generations will benefit from the oil. Since the >extraction of oil as a resource is not infinite, spending the >resources >in a wise manner will ensure that the oil is beneficial to all >Gambians. Spending it as in the case of Equitorial Guinea where the >president and his few cronies enrich themselves at the detriment of >the >people will result in negative consequences for the country. >Strict environmental regulations should be instituted to protect the >environment. Heavy penalties for breach of such regulations should be >provided for. Emergency procedures should be prepared to enable >emergency services to promptly and effectively respond to accidents or >spills so as to minimise their impact on the environment. Emergency >personnel should be properly and effectively trained and equipped with >up-to-date equipment. > >Having looked at the potential blessings, curses and recommendations >related to the discovery of oil in The Gambia as announced by Yaya >Jammeh, it can be concluded that oil in The Gambia can be a blessing >or >a curse depending to a large extent on how the government and other >players handle the processes involved. If the government chooses to >control the oil without transparency and accountability, marginalizes >portions of the population, fails to diversify the economy and >concentrates totally on this sector, encourages or refuses to fight >and >deal with corruption in the various processes, engages in the >repression of the population, uses oil revenue to further arm its >security services to violate the rights of the people, allow the >concentration of the oil industry and revenue in the hands of a few >individuals, fails to put in place environmental safeguards, fails to >regulate foreign companies and fails to insist on those involved in >the >oil production process to invest in up-to-date technologies, the oil >can be a curse. This is because it will result in civil disorder, >economic and political instability, environmental degradation and >catastrophes etc. If on the other hand, the government uses the >derived >revenue to invest in the infrastructural, human and economic >development of the country, properly compensates communities displaced >by oil production, uses the improved living standards of the >population >to ensure respect for human rights, ensures that the production >processes are transparent and accountable, ensures proper and >accountable use of the revenue, institutes proper auditing, >diversifies >the economy with revenue from the oil, ensures that as wide a section >of the population benefit from the production of the oil as opposed to >concentrating everything in the hands of a few individuals, ensures >that companies involved in the process use up-to-date technologies and >processes, creates reserves for future generations, the discovery of >oil in The Gambia will indeed be a blessing. As the body that has the >ultimate power to decide the processes involved in the production of >oil in The Gambia, the government can play a big part in deciding >whether the oil is a blessing or curse. So can the people of The >Gambia. Thanks. > > > Buharry. > > > > > >----------------------------gambiapost.NET------------------------------ >------LATEST NEWS FROM THE GAMBIA, NOW AT:>>------- >http://www.gambiapost.net/newspaper >-------------ACCESS TO OUR ARCHIVE AT:>>----------- >http://www.gambiapost.net/signon.php >(password is : freedumo ) >--------CHAT WITH FELLOW GAMBIA POSTERS>>---------- >http://65.18.147.105/chat/index.php >------------------------------------------------------------------------ >Be sure to contact List Management for (un)subscription requests by e-mail >addressed to: [log in to unmask] or simply follow our DIY directions >at: http://www.gambiapost.net/unsubscribe.htm >------------------------------------------------------------------------- >©2002 Our Guiding Principle : "Va, pensiero", "Let thought(s) fly forth" >------------------------------------------------------------------------- _________________________________________________________________ Watch high-quality video with fast playback at MSN Video. 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