Post by Philroy Hinds on Aug 23, 2013 7:33:34 GMT -5
Natural Resources Dividends Give-Back Macroeconomic
Strategy for Global Socio-economic Development
Chair, Working Group on Development, Environment, Agriculture, Governance & Democracy
Perry Ndubuisi Idejiora-Kalu*
Global Issues Department
International Youth Council (IYC), USA
Introduction
Every part of the world is adorned with economic viable natural resources which if identified and
well harnessed, and the returns put back to economies, could serve as investment capital for these
countries.
These natural resources when interchanged (in monetary terms) provide liquidity needed for
infrastructural investments and sustaining economies. It is better than a loan, no matter how
attractive the terms may be. Natural resources are materials and components (something that can
be used) that can be found within the environment. Every man-made product is composed of natural
resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh
water, and air, as well as a living organism such as a fish, or it may exist in an alternate form which
must be processed to obtain the resource such as metal ores, oil, and most forms of energy which
can even be sunlight.
The Middle East and North African Countries (MENA) and the European Union are currently involved
in an over €390 billion venture aimed at providing Europe with over 14% of its electricity needs from
renewable sources by 2050. The project is a combined solar, wind and thermal energy infrastructure.
This project is set to improve energy efficiency in Europe and countries within the MENA region. In
fact, through this project, the MENA region would be able to meet its internal security and economic
developmental requirements with renewable energy, while exporting excess power from the
infrastructure to create an export industry with an annual volume of more than €60 billion.
How this project will benefit the MENA countries and their partners in Europe will depend on the
efficacy of strategies which should ensure effective give-back of dividends derived from harnessing
these natural resources by government to society, the people, the economy and country.
There is also a huge national security imperative here. If the public in these countries don’t see
the dividends from the exploitation of the natural resources in their country, grudges could sparkup, which may cause social and political uprising, which normally extirpates strategic intentions by
government and investors. When this happens, huge infrastructure put in place for this may be lost
or become un-functional. The Arab spring which started in December 2010 is one of such examples
of potential uprisings caused by resentment by a well-informed public who feel economically
disenfranchised in one way or the other. Such uprisings whenever they happen normally have huge
ramifications, not only to the state but also on a global scale.
It is thus imperative that countries have a give-back strategy which will properly channel-back returns
from the “justifiable exploitation” of these natural resources to the people through investments in
infrastructure, social welfare and security. Globalization plays a huge role here. In today’s highly
globalized world, the socio-economic problem of one part of the world is intricately the problem of the
other. Therefore, it is in the best interest of the world at large, that tensions be reduced to its barest
minimum in countries and dividends realized from the justifiable exploitation of natural resources,
appropriately re-invested for the well-being of the people or the country. A simple but feasible
macroeconomic mechanism for this is the Natural Resources Dividends Give-Back Macroeconomic
Strategy for Global Socio-economic development.
The strategy explains how this can be done through clear-cut ‘malleable’ strategies which can be
beat into policies by governments (whilst not changing their initial policy plans), as well as structured
as re-investment managerial schemes, where mostly checks and balances are maintained with their
respective implementation framework. Checks and balances constitute core elements in proper
re-investment processes but in the absence of structured re-investment mechanisms, creating
infrastructure for the masses will be impossible, then yearnings of the public will be unmet and
when this happens, the moral and philosophical reason of state management will become a failure.
The initiative of this macroeconomic strategy is based on the premise that “Policy without strategy
is emasculate and will always fail”. The means by which this strategy can be implemented or
embedded into existing policy in countries is demonstrated.
Furthermore, the case of Nigeria (a country though enormously rich in natural resources but without
a potent natural resources dividends give-back macroeconomic strategy), is presented. Two other
case studies, this time successful stories of efficacious utilization of returns from natural resources in
namely Venezuela and Azerbaijan are sighted.
The intent of including these two case studies in this discourse is first, to demonstrate the efficacy of
a comprehensive Natural Resources Dividends Give-Back Macroeconomic Strategy and secondly, to
substantiate the claim that the world needs an “off-the-shelf-like”, malleable, comprehensive natural
resources dividends give-back macroeconomic strategy which countries can easily adopt and embed
into their existing policies, to serve as potent tools for ushering-in socio-economic development in
their countries and through this, eradicate the atypical reality of being rich in market-centric natural
resources, but still relatively poor when judged by economic development standards. The overall
aim of the strategy is to introduce it as an economic development catalyst which should kick-start
socio-economic development in countries, which have poor economic development status (especially
third world countries) were the problem of inability of seeing dividends from the exploitation of
natural resources is rampant.
Interestingly, the strategy meets the demands of the UN Millennium Development Goal (MDGs) and
the Post-2015 Development agenda respectively and if adopted by countries can help them meet the
goals of these agendas.
(See Full Strategy in Attachment)
Strategy for Global Socio-economic Development
Chair, Working Group on Development, Environment, Agriculture, Governance & Democracy
Perry Ndubuisi Idejiora-Kalu*
Global Issues Department
International Youth Council (IYC), USA
Introduction
Every part of the world is adorned with economic viable natural resources which if identified and
well harnessed, and the returns put back to economies, could serve as investment capital for these
countries.
These natural resources when interchanged (in monetary terms) provide liquidity needed for
infrastructural investments and sustaining economies. It is better than a loan, no matter how
attractive the terms may be. Natural resources are materials and components (something that can
be used) that can be found within the environment. Every man-made product is composed of natural
resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh
water, and air, as well as a living organism such as a fish, or it may exist in an alternate form which
must be processed to obtain the resource such as metal ores, oil, and most forms of energy which
can even be sunlight.
The Middle East and North African Countries (MENA) and the European Union are currently involved
in an over €390 billion venture aimed at providing Europe with over 14% of its electricity needs from
renewable sources by 2050. The project is a combined solar, wind and thermal energy infrastructure.
This project is set to improve energy efficiency in Europe and countries within the MENA region. In
fact, through this project, the MENA region would be able to meet its internal security and economic
developmental requirements with renewable energy, while exporting excess power from the
infrastructure to create an export industry with an annual volume of more than €60 billion.
How this project will benefit the MENA countries and their partners in Europe will depend on the
efficacy of strategies which should ensure effective give-back of dividends derived from harnessing
these natural resources by government to society, the people, the economy and country.
There is also a huge national security imperative here. If the public in these countries don’t see
the dividends from the exploitation of the natural resources in their country, grudges could sparkup, which may cause social and political uprising, which normally extirpates strategic intentions by
government and investors. When this happens, huge infrastructure put in place for this may be lost
or become un-functional. The Arab spring which started in December 2010 is one of such examples
of potential uprisings caused by resentment by a well-informed public who feel economically
disenfranchised in one way or the other. Such uprisings whenever they happen normally have huge
ramifications, not only to the state but also on a global scale.
It is thus imperative that countries have a give-back strategy which will properly channel-back returns
from the “justifiable exploitation” of these natural resources to the people through investments in
infrastructure, social welfare and security. Globalization plays a huge role here. In today’s highly
globalized world, the socio-economic problem of one part of the world is intricately the problem of the
other. Therefore, it is in the best interest of the world at large, that tensions be reduced to its barest
minimum in countries and dividends realized from the justifiable exploitation of natural resources,
appropriately re-invested for the well-being of the people or the country. A simple but feasible
macroeconomic mechanism for this is the Natural Resources Dividends Give-Back Macroeconomic
Strategy for Global Socio-economic development.
The strategy explains how this can be done through clear-cut ‘malleable’ strategies which can be
beat into policies by governments (whilst not changing their initial policy plans), as well as structured
as re-investment managerial schemes, where mostly checks and balances are maintained with their
respective implementation framework. Checks and balances constitute core elements in proper
re-investment processes but in the absence of structured re-investment mechanisms, creating
infrastructure for the masses will be impossible, then yearnings of the public will be unmet and
when this happens, the moral and philosophical reason of state management will become a failure.
The initiative of this macroeconomic strategy is based on the premise that “Policy without strategy
is emasculate and will always fail”. The means by which this strategy can be implemented or
embedded into existing policy in countries is demonstrated.
Furthermore, the case of Nigeria (a country though enormously rich in natural resources but without
a potent natural resources dividends give-back macroeconomic strategy), is presented. Two other
case studies, this time successful stories of efficacious utilization of returns from natural resources in
namely Venezuela and Azerbaijan are sighted.
The intent of including these two case studies in this discourse is first, to demonstrate the efficacy of
a comprehensive Natural Resources Dividends Give-Back Macroeconomic Strategy and secondly, to
substantiate the claim that the world needs an “off-the-shelf-like”, malleable, comprehensive natural
resources dividends give-back macroeconomic strategy which countries can easily adopt and embed
into their existing policies, to serve as potent tools for ushering-in socio-economic development in
their countries and through this, eradicate the atypical reality of being rich in market-centric natural
resources, but still relatively poor when judged by economic development standards. The overall
aim of the strategy is to introduce it as an economic development catalyst which should kick-start
socio-economic development in countries, which have poor economic development status (especially
third world countries) were the problem of inability of seeing dividends from the exploitation of
natural resources is rampant.
Interestingly, the strategy meets the demands of the UN Millennium Development Goal (MDGs) and
the Post-2015 Development agenda respectively and if adopted by countries can help them meet the
goals of these agendas.
(See Full Strategy in Attachment)