WAOW Launches Research Unit

 WAOW has launched a research unit to systematically examine the international political economy of African oil. According to Dr. Robert Tynes of Bard College, who is co-coordinating the research, “the focus is on how the market is shaped, steered, and/or commandeered by foreign and domestic players”.

Approaches:

We approach the problem from three angles. First, through social network analysis we are mapping the connections forming and formed between oil companies and states, states and states, and companies and companies. The goal is to visualize the political economy and answer several basic questions: Which oil companies hold a dominant position in the African oil market? Which African states appear to have the greatest control over their own resources? Is the African oil market highly centralized, captured by a few key players? Or, is the market decentralized, with multiple companies and/or states maintaining comparable stakes in the market?

Dr. Vandy Kanyako with Research Coordinator, Dr. Robert Tynes

Our second approach involves the construction of a database of all the companies and states engaged in the African oil market, and their role—exploration, extraction, refining. The database includes numerous state-based, political variables, such as: level of democracy, level of education, infant mortality rates, civil society participation as watchdog, membership in multinational transparency institutions, and measures for rule of law, transparency and corruption. These variables are used to reveal potential correlations between economic activities in an African state and political outcomes.

Third, we are also creating narratives for each of the oil companies and African states. These are detailed descriptions that hone in on specific dynamics of the industry—What is the history of oil in the state? How has the company grown in, or receded from, the African oil market? What type of contractual agreements does the state or company have? Taken together, our three-fold approach should provide a multi-dimensional model of the international political economy of African oil, one that has yet to be constructed.

West Africa Oil Watch

Fostering Transparency

Through Civil Engagement

Message From Sierra Leone

Sierra Leone: Consultative meetings on Oil

Introduction
According to the UNODC, between the years of 1960 & 1999, roughly $400 Billion was lost to oil corruption within Nigeria alone. This is approximately the same amount of International Aid given to the entire region within that same amount of time. Development projects have been enacted to address perhaps a few issues within the region pertaining to a marginalized and fractured program at reaching just one of the many implications inhibiting development but these projects fall short of addressing the issues at their source and in a comprehensive manner. Within this overview, we will describe our operations at addressing corruption within the oil sector and their salient liaison to the core issues of development.

Background
Between December 2012 and January 2013 the West Africa Oil Watch, in collaboration with various local partners, organized a series of civil-society-led consultative workshops on Sierra Leone’s nascent oil industry. The workshops were convened in Freetown and in the oil-producing district of Pujehun with the objective of providing an avenue for further consultations with the general public about the ongoing oil finds and its (socio-economic, political, environmental, and human rights) implication for sustainable development and peacebuilding. The meetings provided various stakeholders (government, civil society, private sector, business and religious leaders and academics) with an opportunity to extensively deliberate on issues of community engagement, environmental policies, legislations, regulations and guidelines relating to the country’s emerging oil sector.
Oil was discovered in Sierra Leone’s off shore waters in 2009 by the Texas-based Anadarko. According to the U.S. Geological Survey, the West African Coastal Province – which includes Liberia, Sierra Leone and Guinea – has an estimated 3.2 million barrels of oil. The development on these reserves, which could be significant, is still several years away. For a country with a GDP of 325 dollars – the oil find is expected to be a massive boost to its economy.  In 2011 the government announced the commencement of drilling. The country’s Petroleum Act, which was guided by agreements with oil companies, was rushed through parliament as an emergency bill by the president's office in July 2011.  The Petroleum Resource Unit, formerly the Petroleum Directorate, is under the Office of the President.
Participants:  For the consultative meeting in Freetown 30 Participants from civil society organizations and coalitions working directly on the extractive industry, as well as from academia and the private sector were present. In Pujehun district the meeting consisted of chiefs, landowners, farmers, students and representatives from the coastal communities, especially those engaged in the fishing industry.

Issues raised
There has been very little discussion and as such very little understanding so far of the ongoing discovery of oil in the country. This could be due to a number of reasons, deliberate or otherwise on the part of the government and the oil companies.
Location: The drilling is taking place offshore, away from the prying eyes of the general public. As such only the frontline communities, so far are experiencing the direct effects. Furthermore the oild finds are in one of the most remote and isolated districts in the country, far away from the seat of power in Freetown.
Specialized nature: Furthermore the oil industry is a very specialized sector which makes it hard for the general population to fully understand the key issues at stake.
New industry: It is also a very new industry
Few locals involved: Most of the activities in the oil sector are carried out by non-locals, who are increasingly feeling crowded out. This is partly because few of the locals have the requisite training and experience with the emerging sector. It is also the case that in general, the sector, even in the best of times, directly hires very few people. Most, if any of the benefit are bound to be indirect.

Concerns
Oil is being drilled in one of the poorest regions in the country.  In the short term, at least, it is unlikely the people will directly benefit much from the resource but will have to put up with the major disruptions to their way of life especially as it relates to land appropriation and fishing and maritime security threats such as piracy. Already there is simmering tension with other trans-national corporations in the country in general and the district in particular. Also because it is a volatile source of income it has the tendency to raise expectations both for the government and for the local communities.
The regional implications
It is the same players. Most of the oil blocks in different countries in the region are owned and operated by the same companies. There is therefore a need to engage regionally. Any such approach however also has to take into cognizance the differences in language, culture and kinds of governments. Many civil society networks at the regional level already exist and that WAOW should tap into this.
Interventions/ recommendations

1. There is a need for ongoing research to better understand the linkages between oil and human security. This is perhaps best done by couching WAOW as a thinkthank
2. There is a need to strengthen the capacity of existing institutions, especially those in the affected region, rather than create new networks. A loose and flexible coalition that is nimble and can adapt is the best tool to get the work done.
3. There is an urgent need for a national dialogue which involves all the stakeholders (government, private sector, oil companies, and civil society)
4. There is an urgent need to build the capacity of the local CSOs engaged in the extractive industry in general. This will foster networking and collaboration and help build a critical mass for sustained action
5. WAOW and partners need to develop tailored advocacy tools and a comprehensive media strategy to both raise awareness and disseminate critical and timely information
6. Engaging policy makers and other relevant stakeholders, especially with regards to legislation.
7. Forge stronger partnerships with other civil society groups and local grassroot communities in the oil producing district. This will foster better understanding of alternative sources of livelihoods for the affected communities.

Local and regional partners engaged with issues of oil

• Sierra Leone Environmental Protection Agency (SLIEPA)
• Mines and Minerals Agency
• Anti-Corruption Commission
• Petroleum Directorate- Strasser King
• National Commission on Privatisation
• Njala University College
• Institute of Public Administration
• Crown Polytechnic
• Dr. Sama Mondeh
• Mano River Union Youth Parliament (MRUYP)
• Mano River Union Women’s Network (MARWOPNET)

Conclusion and next steps
A Secretariat overseen by Peacelinks should be set up to coordinate the activities both in the country and in the region.

The Three Pillars of Transparency

 The most substantial approach we take on our activities with the West Africa Oil Watch is to first - ask the right questions. There is currently much debate over how to address corruption within each region of prevalence, (Azerbaijan, Ukraine, Russia, China and throughout the Middle East just to name a few..) Each situation carries with it the facets of historically grounded barriers of politically affiliated private motive within a select few whose dissonance from the realities of the common citizen are so divided within their wealth or position within that society that the desire to amalgamate that resource wealth with the commoner is simply non-existent.

This brief 'Three Pillar Approach' is in no way an adequate address to the opaque and arduous circumstances regarding corruption but although the need for transparency is vastly intricate and meticulously complicated to address, there can be a synopsis of three apparent issues to cover:

1.) Adequate representation regarding civil society within the drafting of oil contracts.
2.) Alleviation of the opulence in official positions which hold no immediate liaison with the executive office, (Cabinet 'Aids', 'Energy Ministers', 'Corporate Facilitators', family and tribal tendencies pertaining to resource management administrative power etc..)
3.) Providing Public Documentation of resource revenue wherever it is and to whomever collected and dispersed of it.

Privatization can be a messy business. From water privatization in Bolivia to food monopolies presented by the WHO, WTO and even that of America's debate over ethanol vs. fuel subsidiaries in the production of corn. Fact is - whomever controls the resource wealth, from corn to coltan, controls those who consume it. In this case, I am specifically referring to the corruption of petroleum extraction in West Africa.

Although these regions are unique in their intricate past and current circumstance, what we have found so far is that the need for community representation within the drafting of the oil contracts has never before been such a critical element in alleviating corruption from any private industry. Our approach is strategically aimed at unifying communities for more adequate representation within the drafting of oil contracts throughout the region. Our founder has just returned from Sierra Leone after speaking with civil activists, youth development groups, chiefs and communal civil society organisations to effectively facilitate communication between these groups and strengthen ties within the region to allow for a more substantial presence among affiliated oil agencies. Our agency is new and thus, we lack the funding necessary for providing a community representative, (lawyer) to preside as a direct contact to the people within the region but for now, our activities consist of integrated civil movements such as that formed by Ken Saro Wiwa prior to 1995.

According to Human Rights Watch, "Exxon Mobil, Chevron-Texaco as well as lesser known companies have been spending about $10 billion annually towards exploration of oil in West Africa". Africa is also currently supplying 15% of US Oil Consumption - a figure mind-blowing to gauge in itself as the US consumes 7 Billion barrels of oil per year according to the US Energy Information Administration. As these regions have not the capacity for adequate judicial address to the issues of corruption and poorly lack the parameters of positive law in regions susceptible to political turmoil and relapse into the status-quo that is war within many regions in West Africa, this influx of privatization is incredibly dangerous to a developing economy. The irresponsibility of negligent 'Aids' and corporate liaisons to the area provide a hazardously volatile position for the locals whose fishing communities have been devastated and fraught with crime as 'rebels' attempt to tap the pipelines and export the resource to corrupt third party industries. One example of this issue of fraudulent officials given power of industrial might can be sadly depicted in Liberia's Nobel Peace-Prize Laureate Eileen Johnson Sirleaf's firing of her own son from the position of Central Bank Deputy Governor for failing to report his assets - http://www.bbc.co.uk/news/world-africa-19333908

As Peter Eigen from Transparency International points out in the newly drawn free online document produced by the Governance of Extractive Industries team, (GOXI) entitled "How to Read and Understand an Oil Contract", the current issue regarding resource corruption in West Africa stems from not just the prevalence of direct governmental and corporate ties within the region, (Federal claims of land to privately auction to corporate involvement without consent of the people as can be seen in Nigeria's "Land Use Act of 1978") but seems to stem more predominantly from the grey area of cabinet 'aids' and officials whose position is not so clearly listed. These officials are easily bought off by oil and mineral companies to allocate force behind the decisions of political powers across the region, (Some would argue the world...)

The third point I would make would be the need for addressing adequate documentation for the resource wealth and its flow within government programs and affiliates. Accountancy is vital at this point as our need to document these sources adequately can mean the difference between life and death for the people of these highly impoverished regions. The indoctrination of the Extractive Industries Transparency Initiative (EITI) is a monumental feat for these developing economies as it publicly declares the amount of resource wealth taken from a country and who it has been given to. However, from here, the processes of laundering the money through governmental programs inducing exuberantly excessive spending can dilute the legitimacy of resource wealth as it seeds through the intricate filters of corruption. This is where we have to establish the need for cooperation among the officials of government which must be addressed through direct screening and public documentation of resource funds.

We must address these key points with a strong and persistent attitude that never digresses from our powerfully propelling plight of the people to tackle our issues head on and alleviate corruption in each of its dark and convulsively shallow niches for which it exists.

Weekly Roundup 1/5/13

Dr. Kanyako has referred back to us with some Very Exciting Information about the progress West Africa Oil Watch has been making throughout the region! Last week, Dr. Kanyako was in the prospective oil producing district of Pujehun, in the far south of the country. 

During that time he had the distinct pleasure of interviewing and discussing with a cross section of community members: Youths, Civil Society Activists, Religious Leaders, Chiefs, Women's Leaders, Riverine and Fishing Communities etc. 

From his experience with the groups, he found that the insights from the individual and focused group discussions are absolutely fascinating! He even had the opportunity to assess the quality of the water, which with the flow of oil could be under threat. 

Back in Freetown, Dr. Kanyako organized a workshop this past Thursday for Civil Society Activists working on the extractive industry. There were about 20 participants from a broad spectrum of civil society groups in the country.  We are surging through West Africa to establish a strong and confident community based on Justice Through Transparency. 

We are currently working with groups in the region to strengthen our communities and enlarge our impact on helping struggling communities fight against the resource curse.