“How can revenues from natural resources extraction be more efficiently utilized for local sustainable development?”

Abstract

NRF, A United Nations Sustainable Development Journal is running a special series over the 2009-2011 period on themes to be considered by the UN Commission on Sustainable Development in its 18 th and 19 th sessions: chemicals, mining, sustainable consumption and production, transport, and waste management. In this issue, experts address the question: "How can revenues from natural resources extraction be more efficiently utilized for local sustainable development?" Implied in the question is an 'agency' that is in charge of receiving and, in turn, 'utilizing' the revenues for the local communities. In this formulation, the communities inhabiting the local geographical scale are seen as being 'acted upon' by this higher body; good is being done to them. This innocuous question, therefore, consolidates the undulating terrain of power before a dialogue can begin on a level-playing field. The question needs to be changed to: 'how can local communities utilise the natural resources to achieve sustainable developmental outcomes?' Such a formulation would not embed rent-seeking by extractive companiesmultinational or nationally owned-and the State. The local communities would not be stripped of ownership of resources, which happened historically during colonization often through enclosure. If I had to give a prescription a la 'What is to be done', I would advocate that mineral resources be co-managed with only a small portion of the revenues given to the national and other state agencies. In a number of other natural resources sectors, the local communities' ownership, interest and ability to manage have been recognised. Evidence is mounting that co-management yields more equitable and sustainable developmental outcomes. Imagining an alternative (and better) future would involve radically changing the current power superstructures, and a first step is to accept the local communities as rightful owners of resources and as resourceful enough to manage the revenues for themselves.