Presented at the Zamyn
Global Citizenship Forum on 6 June 2013
Good evening Ladies and
Gentlemen. My name is Caroline Kende-Robb. I am the Executive Director of the
Africa Progress Panel, a foundation Chaired by Kofi Annan.
It is my pleasure to welcome you all this evening to Zamyn’s Cultural Forum at
the Tate Modern here in London.
This evening’s event is one in a series of debates focusing on political,
social, economic and cultural issues related to globalization, citizenship and
identity.
I would like to give a very special and warm thanks to Michael Aminian and his
team at Zamyn. Thank you, Michael. You have put together such an interesting
series of events. Your incredible dedication and commitment are truly
commendable. And thank you too to Marco Daniel from Tatre. You have done a
fantastic job of pulling all of this together.
Thank you also to the other sponsors – Accenture, Barclays, Penguin Books,
SOAS, and the Tate. I think we can all be proud to be associated with this
event and I am delighted to be introducing this evening’s theme on Natural
Resources – an extremely complex sector. But I see we have an incredible high
level panel here this evening.
We all know the story of the butterfly that beats its wings and -- somehow
through a chain of events unleashes a typhoon on the other side of the world.
Something similar is happening when we use natural resources.
Most of us here in this room use such resources pretty much every single day of
our lives – whether that’s fuel or even just the whitener in our toothpaste.
Our actions and decisions (some of them without even noticing) have an impact
all around the world.
When we started writing the 2013 Africa Progress Report on oil, gas and mining
one year ago, we recognized that although Africa was riding the crest of the
global commodities wave, resource-led growth had yet to transform the lives of
Africa’s people.
In many countries, natural resource revenues were widening the gap between rich
and poor. Billions of dollars were being squandered on building personal
fortunes often supporting corrupt and unaccountable political elites.
What we did not anticipate was that over the year the momentum for change would
accelerate. Indeed, it is rare in global policymaking that interests align to
the extent that we are seeing today.
Let me briefly outline some the significant changes that have emerged over the
last year.
Twelve months ago, who would have thought the US mortgage crisis and the
eurozone’s predicament might improve global transparency and accountability?
As austerity bites in many G8 countries, citizens are demanding fairness and
action. They feel cheated, and will no longer tolerate secret deals, illicit
financial flows, and tax havens. For citizens everywhere, in Africa, in G8
countries and across the globe, current tax practices raise questions about
fairness, social justice, and citizenship. Such practices affect the grandma in
Manchester as well as the mother in Mali – but they affect Africa more.
Another significant development is the recent passing of the Dodd-Frank Act in
the United States and similar EU measures that require extractive companies to
meet higher standards of disclosure. Now the G8 is on the case, with the UK
Presidency putting tax and transparency on the agenda for the G8 Summit this
month.
In Africa, too, citizen opposition is growing to the squandering of oil, gas
and mining resources as evidence emerges of undervaluation and
mismanagement. Indeed, trade mispricing costs African governments in the
region of $34 billion annually.
Recognizing these costs, some African governments are taking action. Liberia,
Sierra Leone and Guinea now make mining contracts publicly available. And Ghana
is strengthening accountability in the management of petroleum revenues. Such
actions can strengthen the social contract between the state and its citizens.
At the same time, many companies are now looking beyond short-term profits
towards long-term investment partnerships. These companies recognize the
economic, as well as the ethical, case for strengthening linkages to local
firms and engaging with local communities. They know that sustainable
investment needs a stable country and a “social license to operate”.
What is emerging as the silos of secrecy crumble is a shared agenda, in which
different parties have overlapping interests and similar goals. As Mr Annan
states in the report “Building trust is harder than changing policies – yet it
is the ultimate condition for successful policy reform.”
He adds, “Mutually beneficial agreements are the only ones that will stand the
test of time”.
None of this will be easy going forward. But the report sets out a number of
steps and I will mention just a few:
· The G8 Summit should serve as a
launch pad for a rules-based global system on both transparency and taxation to
be developed with the G20.
· All foreign-owned companies should
be required to publicly disclose the ultimate beneficiaries of their profits.
· Switzerland, the United Kingdom and
the United States, all major conduits for offshore finance, should signal
intent to clamp down on illicit financial flows.
· African governments can work
towards adding value to natural resources before export, securing adequate tax
revenues, and spending these revenues more equitably.
· Major investors in Africa’s extractive
sectors like China and emerging investors such as Brazil must also engage.
Public scrutiny by citizens across the globe will continue to be a crucial
force for change. As interests align, and the context shifts, everyone has a
role to play in stewarding Africa’s nature resource wealth to transform the
lives of many in Africa and across the globe.
The report concludes that huge opportunities exist in Africa and leaders across
the globe – in government, industry and civil society – must take action now.
The benefits of seizing these opportunities will not just transform the lives
of Africans, but will also be felt in countries across the world.
It is my great pleasure to hand over to Robert Guest who will chair this
evening’s debate.
Caroline Kende-Robb is the Executive
Director of the Africa Progress Panel
About Africa Progress Panel
The Africa Progress Panel connects
the influence of our Panel members with cutting edge policy analysis to
advocate for equitable and sustainable development in Africa, especially on
those policy issues that are critical for Africa’s development and where the
nature of our organisation means we bring significant comparative advantage. Our
Panel members have unusual access to the highest level of policy makers in
Africa and across the globe and can speak with an African voice.
