Impact of Sustainable Resource Governance on Resource Utilisation and Sustainable Development in Africa: The Natural Resource Charter in Perspective

Abstract

In economic and developmental terms, the general belief is that resource-rich countries
tend to be worse-off than those which are resource-deficient. This is because of the
disruptive phenomena of the resource curse, the Dutch disease and rent-seeking. This
belief is supported by overwhelming evidence from many countries across the world,
especially in Africa. This study found, however, that this result is not inevitable if
appropriate and sustainable natural resource governance mechanisms are put in place
and implemented by resource-rich countries. This argument appears to be validated in
this study based on a comparative study of selected countries that have been
implementing the Natural Resource Charter (NRC) framework and those not
implementing it across the world. This is in order to underline the importance and
benefits of having a sustainable resource governance framework in resource utilisation
and sustainable development in Africa. The NRC is a framework of twelve tried and
tested economic principles developed and drafted by world-class experts in economically
sustainable resource extraction law and practice with a view to helping resource-rich but
poor countries to harness and more effectively manage and utilise their natural
resources for the overall development and benefits of state and citizens. The NRC
framework speaks to the situation of many resource-rich countries in Africa who are
poor because of the absence of sustainable resource governance mechanisms. The study
finds that economies implementing the NRC framework in the management and
utilisation of their natural resources are faring much better economically and socially
than those not adopting it.