Select Committee on International Development Written Evidence


Memorandum submitted by One World Action

EXECUTIVE SUMMARY

  1.  New approaches could be developed for working in a difficult environment such as Angola. These would require thought and planning by donor agencies and implementing agencies in partnership, but would be worthwhile in terms of peace-building and in developing knowledge of how to work in such contexts. Poverty and vulnerability can lead to a scramble for resources as part of survival strategies and thus create a risk of renewed conflict. Institutions can be weak and have difficulty in mediating between different groups with different interests.

  2.  We therefore support the priorities for working in fragile states outlined in DFID's document "Why we need to work more effectively in fragile states" of January 2005, in particular the efforts for an international framework for the way in which donors and international organisations engage with fragile states. As a DFID partner working in a post-conflict fragile state, we would welcome a clearer framework for dialogue with DFID about its policies and approach.

  3.  We would like to stress that it may take a long time for the benefits from these programmes to trickle down to the majority of citizens of these States, who are thus likely to remain in extreme poverty for many years unless there are programmes that provide them with more immediate opportunities to rebuild their basic assets, develop their skills and provide access to basic services. We would also like to stress that fragile states are often a reflection of fragile societies. Weak State institutions are often a reflection of local level institutional weakness. Institutional capacity often needs to be developed at a local level. Furthermore national level conflict can often be a reflection of many local level tensions and conflicts.

  4.  Thus while we welcome the emphasis on the capacity of States, we would like to stress that the local level should not be neglected. We welcome DFID's work in studying alternative methods of service delivery in fragile states. We believe that it is possible for bilateral donors and international organisations, in partnership with others, to work at a local level in a way that

    (i)  reduces material, social and human vulnerability;

    (ii)  increases knowledge about a society, in particular about the strengths and weaknesses of its institutions and conflict risks;

    (iii)  helps to develop the capacity of local level State institutions, building State capacity from the bottom;

    (iv)  recognises the centrality of developing services sensitive to gender, age, disability and HIV/AIDS;

    (v)  helps to develop the capacity of other local level institutions and builds linkages with State institutions; and

    (vi)  helps to develop the capacity for conflict-resolution and reconciliation at a local level.

  5.  The DFID-funded Luanda Urban Poverty Programme fits into this category. It is supported by the Department for International Development. The current phase, LUPP started in April 2003 and runs until September 2006, building on the experiences of the first phase. A future phase is yet to be agreed.

  6.  To ensure that sustainable change is made to reduce poverty, the capacity of citizens to demand their rights to basic services and to dialogue with local authorities needs to be strengthened. Active citizens need to be supported to participate in planning processes for local services and local authorities provided with technical and managerial support to create the conditions for effective service delivery. LUPP is achieving real impact both in terms of policy influencing as well as making a difference at a practical level in the lives of poor women, children and men. LUPP is making a difference to building more accountable local governance in a very difficult environment. LUPP is becoming a ground-breaking example of policy influencing in a fragile state.

  7.  LUPP has opened spaces for state/citizen engagement and has provided exposure at different levels to participatory approaches to development. This is providing an environment for debate and collaboration and is laying the foundations for accountability mechanisms to emerge. To date the LUPP has been a successful initiative in a post-conflict, fragile state. It has stressed the need to strengthen governance at all levels to ensure that all Angolans benefit from the growing economy. This focus echoes the conclusions of the Commission for Africa and much of DFID's recent analysis—even with economic growth and peace, poverty will not be reduced without good governance.

FULL SUBMISSION BY ONE WORLD ACTION TO THE INTERNATIONAL DEVELOPMENT COMMITTEE

  8.  One World Action very much welcomes the opportunity to contribute to the International Development Committee's inquiry on "Conflict and Development", and to comment on the effectiveness and external coherence of British policies for peace-building and post-conflict reconstruction. We very much agree with the need to develop stronger policies in this area and conflict-sensitive ways of working.

  9.  We will base our comments and recommendations on the experience of our work in Angola, which is a country emerging from more than 40 years of conflict. One World Action has supported partner organisations in Angola since our founding in 1990. Since 1999 One World Action has been a key partner in the Luanda Urban Poverty Programme working with the Angolan agency Development Workshop, our partner since 1990, as well as CARE UK and Save the Children UK. Our submission is based on consultations with our partner Development Workshop and our experience of working in Angola since 1990. Part of the submission has been drafted by an expert in peacebuilding and post-conflict reconstruction, Paul Robson.

  10.  The DFID supported Luanda Urban Poverty Programme has become an important example of a peacebuilding and post-conflict reconstruction programme which has its roots in work established during the conflict. We present this initiative as key input into the International Development Committee's reflections as a successful intervention in a fragile state.

  11.  It is now widely agreed that post-conflict states have a high risk of reverting to open conflict in future. Post-conflict states are usually fragile states, meaning that they have weak institutions: they may have historically weak institutions or institutions may have weakened because of conflict. The deep-seated conflicts that led to an open and violent conflict are not necessarily resolved by a peace agreement, cease-fire or military victory by one side that bring a violent conflict to an end. It is also now widely agreed that open, violent conflict (or instability) in one state has high spill-over costs to neighbours and other countries. It is now widely accepted that the end of open and violent conflict is the opening of another phase of peace-building and reconstruction. It is also widely accepted that policies and practices in this phase of peace-building and reconstruction still require further development, and that they need to be tailored to each situation.

  12.  Angola has known conflict since 1961. The first phase, from 1961 to 1974, was a war for independence against Portugal that affected only small parts of Angola along the eastern and northern borders. Successive cycles of conflict since Independence in 1975 have affected most areas of the country in some way and at some time (apart from the south-west coastal areas). Short periods of relative peace (such as 1991 to 1992 and 1994 to 1998) have been followed by even higher levels of violence.

  13.  Previous to 1989, the conflict in Angola was part of the Cold War. Angola was seen as part of the Soviet Block, and received limited attention from donor countries and international agencies. Angola then received a high level of attention from donor countries and international agencies subsequently, particularly in the form of humanitarian assistance after 1992 when the first national elections resulted in a return to conflict. DFID was among the donor agencies that engaged with Angola during this period and, like a number of donors, also began to explore ways of addressing development problems during complex emergencies.

  14.  Peace was achieved in 2002 after the death of Jonas Savimbi, the leader of the rebel movement UNITA. Since 2002 the amount of humanitarian aid has dramatically decreased, which is not unexpected. However this has not been replaced by other forms of aid. Without making formal announcements, most donor agencies appear to be reducing or ending their programmes in Angola. It would appear that DFID is also scaling down its programmes in Angola. Angola risks becoming an "aid orphan", just as its crucial post-conflict transition gets under way: donor agencies make uncoordinated decisions to scramble for the exit (and conversely make uncoordinated decisions to all work somewhere else). It would appear to be still true that "Aid delivery is fragmented, volatile and poorly coordinated".[92]

  15.  This tendency is of great concern, especially in the context of the clear recommendations from the Commission for Africa. It has been difficult to understand clearly the rationale for this apparent change in donor policy. We are concerned that there are three lines of thinking:

    (i)  that Angola is a difficult environment to work and that many of the normal aid instruments are inappropriate;

    (ii)  that the situation in Angola is normalising rapidly; and

    (iii)  that the Government of Angola's access to oil revenues should allow it to rebuild damaged infrastructure and provide services to its citizens, and that it is only unwillingness on its part that prevents this happening.

  We would like to discuss each of these assumptions.

  16.  We are concerned that, when discussing Angola, donor agencies are still making reference to normal aid instruments such as humanitarian aid, direct budgetary support and basket funding. It is quite clear that the relevance of humanitarian aid is declining rapidly in Angola, though there are still some pockets of extreme need where it might be appropriate. It is also quite clear that the time when direct budgetary support and basket funding is appropriate in Angola is a long time in the future. We are concerned that the difficulty in applying these normal aid instruments to Angola may contribute to a decision to cease work in Angola. We had understood that the recognition of the need to develop policies for fragile and post-conflict states was leading to efforts to develop new instruments and approaches, but it is unclear how this is being applied in the case of Angola. We are of the opinion that new approaches could be developed for working in a difficult environment such as Angola. These would require thought and planning by donor agencies and implementing agencies in partnership, but would be worthwhile in terms of peace-building and in developing knowledge of how to work in such contexts.

  17.  There has always been a dearth of social research about Angola, both in the colonial and the post-Independence periods. The humanitarian aid agencies developed a considerable amount of knowledge about conditions in the country, but with emphasis on information about numbers of refugees and internally displaced people (as humanitarian agencies were expected to feed these people). The winding down of the operations of agencies such as OCHA and UNHCR means that there is now a scarcity of information about conditions in parts of the country that were severely affected by the war.

  18.  The fact that information collected previously was about numbers of people who were displaced by war has tended to lead to an assumption that when the war ends these people can go back home and take up their lives where they left off. It is often said, for example, that in 2003-04 four million displaced people in Angola returned to their areas of origin.[93] It is then assumed that these people have successfully "re-integrated", that is that they have successfully re-established their economic and social lives again. Detailed research reports that we have seen about various areas of Angola suggest that only small proportion of formerly displaced people have returned to their "areas of origin". They also show that those who do return to war-affected rural areas have great difficulty in re-establishing their livelihoods as they lack tools, seeds and draft animals to re-establish agricultural production. They also suffer from an absolute lack of other assets, so that they have no assets on which to live while they are attempting to re-establish an income from farming. In many areas small-scale farmers have only succeeded in clearing a small proportion of the land necessary for supporting a family and are producing much less than a family's food needs. Refugees who have returned from Zambia, assisted by UNHCR, have not been able to return to their rural "areas of origin" in Moxico Province because there is a large number of land-mines and the infrastructure has been destroyed by 40 years of warfare. We would like to stress again that the emphasis on the movements of population in much of the data about Angola can lead to misleading assumptions: refugees have returned from Zambia to Angola but they are often living in difficult conditions in safe areas around towns and it is unclear when they will be able to return to rural areas of origin and rebuild a satisfactory livelihood.

  19.  Large numbers of people who have been affected by war and have not returned to rural areas of origin live in Angola by odd-jobs for other people (such as carrying sacks in market-places or weeding fields) for a pay of about one dollar per day. Those who have access to a small amount of capital survive by retail trading in markets or the street, in both towns and in rural areas. These are survival strategies and not livelihoods: they barely provide sufficient for survival and certainly do not permit any accumulation of capital. One survey in Huambo Province showed that almost half of children eat only one meal per day. This extreme poverty and vulnerability could lead to a scramble for resources as part of survival strategies and thus create a risk of renewed conflict. Areas where woodland is available for charcoal making, or where there is the possibility of small-scale diamond mining, already attract people from various areas and there are signs of conflict between local people and those who migrate to seek work. Institutions are weak and have difficulty in mediating between these different groups with different interests. The highly militarised situation in Cabinda and the diamond areas is a reflection of conflicts between national and local interests about access to resource rents in a situation where the majority of the population are poor and vulnerable.

  20.  While it is true that the Government of Angola does have access to oil revenues, and that these are likely to increase in future, this does not necessarily mean that its failure to re-establish services since the end of the war is due to an "unwillingness" to provide services. The Government of Angola lacks many of the other capacities that are required to provide basic services, and this is hardly surprising at the end of a long period of conflict: there is no experience, in the colonial period or post-Independence, in community-level reconstruction or development programmes. Nor is it clear that the withdrawal of donor support, or the threat to do so, will work as a form of conditionality that will spur the Government of Angola to a greater willingness to provide basic services. The Government of Angola is more likely to draw the conclusion that donor agencies are unreliable. This conditionality approach (of rewarding countries with relatively effective governments and thus neglecting fragile states) is no longer supposed to be policy, though does appear to be still being applied in the case of Angola. We are concerned that donor agencies, including DFID may be missing a vital opportunity for post-conflict peace-building in Angola.

  21.  We therefore support the priorities for working in fragile states outlined in DFID's document "Why we need to work more effectively in fragile states" of January 2005, in particular the efforts for an international framework for the way in which donors and international organisations engage with fragile states. We welcome efforts to reach agreement among bilateral donors about who does what, and where, with respect to fragile states. We would welcome greater clarity from the British Government about the outcome of the Senior Level Forum on Effectiveness in Fragile States (in London in January 2005) and the Millennium Review Summit (of September 2005) in working towards such a framework and agreement. We would welcome further information from the British Government about what further steps are proposed towards such a framework and agreement following the Senior Level Forum on Effectiveness in Fragile States and the Millennium Review Summit.

  22.  We welcome the commitment of DFID, in the above document, to work with partners to meet the challenge of fragile states. As a DFID partner working in a post-conflict fragile state, we would welcome a clearer framework for dialogue with DFID about its policies and approach.

  23.  We welcome the commitment of DFID, in the above document, to provide more DFID staff to work on fragile states and to deepen understanding of such states. We would welcome further information from DFID about how this commitment has been taken forward for each post-conflict fragile state.

  24.  We agree with the view of DFID (outlined in "Why we need to work more effectively in fragile states") that not every donor can work in every post-conflict or fragile state. Where DFID has decided not to give priority to a particular post-conflict fragile state, we would welcome a statement about why this decision has been taken and what expectation there is of other bilateral donors or international organisations taking the lead in each case.

  25.  We welcome the fact that bilateral donors and international organisations increasingly follow an approach that emphasises the capacity of States in Low-Income Countries, and emphasises the ability of the State to provide what citizens need to lead decent lives. We welcome programmes by international organisations to assist States to develop their capacity to manage the economy and, in particular, resource flows from extractive industries.[94] However we would like to stress that it may take a long time for the benefits from these programmes to trickle down to the majority of citizens of these States, who are thus likely to remain in extreme poverty for many years unless there are programmes that provide them with more immediate opportunities to rebuild their basic assets, develop their skills and provide access to basic services.

  26.  We would also like to stress that fragile states are often a reflection of fragile societies. Weak State institutions are often a reflection of local level institutional weakness: for example, weak local government, or customary institutions that have failed to adapt to changing circumstances or develop relationships with formal institutions. Institutional capacity often needs to be developed at a local level. Furthermore national level conflict can often be a reflection of many local level tensions and conflicts: reconciliation in post-conflict states needs to occur at a local level as well as at the national level, and causes of conflict (such as competition for access to resources and weak institutional capacity to manage it) need to be dealt with at a local level as well as at a national level. War (and particularly a prolonged war) is likely to have further weakened institutional capacity and created new causes of conflict (for example where population movements and destruction of former employment opportunities have created new foci of competition for scarce resources).

  27.  Thus while we welcome the emphasis on the capacity of States, we would like to stress that the local level should not be neglected. Working at a local level in a fragile state implies to some extent bypassing central government and working through other channels, and we welcome DFID's work in studying alternative methods of service delivery in fragile states. We recognise that there is a risk that donors and international organisations working directly at a local level will simply relieve the national government of its responsibilities: however this should be balanced against the risk that capacity-building and reconciliation at a national level may be undermined by neglect of the local level.

  28.  We would like to stress that alternative methods of service delivery should not be seen in a humanitarian framework simply because they are working to some extent outside state structures. We would like to stress that working at a local level should not mean uncoordinated projects that are not part of a broader development strategy. We believe that it is possible for bilateral donors and international organisations, in partnership with others, to work at a local level in a way that

    (i)  reduces material, social and human vulnerability;

    (ii)  increases knowledge about a society, in particular about the strengths and weaknesses of its institutions and conflict risks;

    (iii)  helps to develop the capacity of local level State institutions, building State capacity from the bottom;

    (iv)  recognises the centrality of developing services sensitive to gender, age, disability and HIV/AIDS;

    (v)  helps to develop the capacity of other local level institutions and builds linkages with State institutions; and

    (vi)  helps to develop the capacity for conflict-resolution and reconciliation at a local level.

  29.  The DFID-funded Luanda Urban Poverty Programme fits into this category. The Luanda Urban Poverty Programme (LUPP) has been ongoing since 1999, implemented by four international NGOs—CARE International, Development Workshop (DW), Save the Children UK and One World Action. It is supported by the Department for International Development. The current phase, LUPP2, started in April 2003 and runs until September 2006, building on the experiences of the first phase. It is uncertain if there will be support for the next important phase of work. LUPP2 is implemented in four of nine municipalities in Luanda.

  30.  To ensure that sustainable change is made to reduce poverty, the capacity of citizens to demand their rights to basic services and to dialogue with local authorities needs to be strengthened. Active citizens need to be supported to participate in planning processes for local services and local authorities provided with technical and managerial support to create the conditions for effective service delivery. In short, there must be a focus on the interface of effective state institutions with active citizenship.

  31.  Civil society needs to grow in capacity to articulate demands for poverty reduction and to enhance dialogue and engagement with local government. Poverty reduction cannot be achieved without significant changes in the profound inequalities that exist in Angola and without bringing in the many groups that are currently socially excluded.

  32.  Implementation of the decentralisation process and inclusion of key Millennium Development Goals (ie health and education) in the Government of Angola's own programmes provide great opportunities and entry points to continue to promote pro-poor policies and good governance in Angola. To support the Government of Angola's own plan to reduce poverty will require a great deal of drive and commitment and the allocation of funds at the lower administrative levels. Most importantly it will require active citizens to be organised, able to articulate demands and to plan and dialogue with local government. It is essential that countries which benefit from Angola's oil wealth also invest in more effective systems to ensure that economic growth is inclusive and narrows the increasing gap between rich and poor.

  33.  LUPP partners work in collaboration with the Government of Angola to support the government to meet its declared goal of halving poverty levels by 2015. The programme is implemented in partnership with civil society organisations, NGOs, service providers and government departments/ministries. LUPP engages to promote pro-poor policies, especially in seeking to guarantee the provision of basic services to Angolan citizens.

  34.  The purpose of LUPP2 is to influence equitable, inclusive, pro-poor policies and best practices for Angola for poverty reduction in urban Luanda. The policy influencing agenda is the overarching framework of the programme. LUPP seeks to influence poverty reduction in Luanda by:

    —  Demonstrating effective, sustainable, inclusive and replicable best practice strategies (models, methods and approaches) for basic service delivery (water, sanitation, rubbish collection, community créches), livelihood support (micro-credit, savings, Business Development Services (BDS) and consumer cooperatives), social capital, governance and poverty reduction more generally which can be effectively replicated in poor urban areas to bring about positive change in the lives of poor urban families;

    —  Facilitating active learning and understanding on urban poverty issues and policies by key stakeholders and producing strategic information on the lessons, messages and methods emerging from the models and approaches, adapted to demands for policy relevant information;

    —  Strengthening the commitment and capacity of local authorities and civil society to promote and implement inclusive and participatory local development;

    —  Promoting greater engagement, inclusion and accountability between government and civil society on urban issues, largely through the creation of spaces in which different actors can come into contact with the lessons, messages and methods, absorb their implications and take forward the work of integrating them into policy and practice.

  35.  Achievements to date

  LUPP is achieving real impact both in terms of policy influencing at a strategic level as well as making a difference at a practical level in the lives of poor women, children and men. LUPP has a proven track record of making a difference to building more accountable local governance in a very difficult environment. LUPP is becoming a ground-breaking example of policy influencing in an extremely difficult environment in a fragile state. LUPP has brought together methodologies and approaches in micro finance, water and sanitation, business development services, participatory urban governance and early childhood development that have become models for the Government of Angola, non-government and private sector actors and are being replicated in Luanda and beyond.

  36.  LUPP has opened spaces for state/citizen engagement and has provided exposure at different levels to participatory approaches to development. This is providing an environment for debate and collaboration and is laying the foundations for accountability mechanisms to emerge. At the same time it is creating opportunities to change existing power relations and the formal and informal rules of the game. In some cases local government is listening and taking action based on concerns raised.

  37.  LUPP's development of best practice, community-managed approaches to basic service provision and livelihood support is providing practical solutions for poverty reduction and is having a real impact at the household and community level.

  38.  LUPP is empowering ordinary people. It is successfully building up alliances and networks from the various community based organisations. These are leading to increased participation and giving voice to poor people so that they can start to claim their rights. There is evidence of increased confidence, rights awareness & information sharing, and working to find solutions independently from LUPP.

  39.  To date the LUPP has been a successful initiative in a post-conflict, fragile state. It has stressed the need to strengthen governance at all levels to ensure that all Angolans benefit from the growing economy. This focus echoes the conclusions of the Commission for Africa and much of DFID's recent analysis—even with economic growth and peace, poverty will not be reduced without good governance.

  40.  Notwithstanding the challenging context, LUPP's experiences over the past six years have identified entry points that could help to have an impact on reducing poverty as measured by the MDGs. The Campaign Against Poverty is one of the two top goals for the Government of Angola in its medium term plan. However, how the Angolan Government can address poverty is not as clear. LUPP is a goldmine of practical approaches to reducing poverty and fills a gap for the Government of Angola in understanding how to address complex issues of urban poverty. Various levels of government have already shown interest in replicating LUPP approaches.

  41.  LUPP's experiences over the past six years have been impressive and in particular in their capacity to bring citizens closer to Municipal authorities for joint planning. The Programme has shown that it is possible, even in the difficult environment of a fragile state, to enhance dialogue at the interface between citizens and state. LUPP has had considerable success in helping citizens to organise into representative groups and work together with Municipal Administrations to plan for services. As Municipal Administrations have become more confident about these methodologies, their enthusiasm has grown and LUPP has provided technical support to Municipal Administrations from 17 of the 18 Provinces of the country.

  42.  Over the next three years, if support can be agreed, LUPP will build on existing gains with a focus on promoting pro-poor policies and service delivery through active citizenship and more accountable governance. The Programme will shift emphasis towards creating sustainable capacity within Municipal Administrations and the Provincial Government. At the same time, it will reinforce the capacity of citizens' organisations to negotiate for their rights to basic services and participation in democratic processes.

  43.  There will be many new elements to the Programme for the next three years, including:

    —  Reinforcing the capacity of Municipal Administrations to monitor poverty as well as of and the Provincial Government to consolidate data and monitor this against the MDGs. This should increase the motivation of the Luanda Provincial Government (GPL) to impact on poverty.

    —  Strengthening active citizens' organisations to analyse and monitor budgets at local level.

    —  Building new alliances with the private as well as public sector and community managers in scaling up the provision of basic services drawing on LUPP models.

    —  A greater focus on the extremely poor (the poorest 25%) and socially excluded, including appropriate micro finance products and social safety nets.

    —  A stronger emphasis on those infected and affected by HIV/AIDS with a focus on youth-friendly Reproductive Health and HIV related services, as young people are the group most at-risk.

    —  Active research and advocacy on decentralisation as new legislation and elected local authorities will be established during the next five years. LUPP is in a very strong position to lobby to enshrine participation in new legislation and approaches.

  44.  A World Bank document[95] gives other examples of local level programmes that fit into a broader development strategy. The design and sequencing of such programmes will need to take into account the particular circumstances of each country, in particular how and when local level activities will interact with national level activities. However we believe that the effort of designing and implementing such programmes will produce benefits in stabilising post-conflict situations.

  45.  We would like to draw attention to the fact that there is a gap in the mandates of international organisations for working in post-conflict states. The tendency is for agencies such as UNHCR, OCHA and WFP to withdraw soon after the end of conflict but long before refugees, displaced people and the demobilised have effectively resettled and rebuilt satisfactory livelihoods. These agencies have a capacity for working in difficult environments: they have, for example, a logistical capacity and a pool of staff with willingness and experience to work in remote areas where services have not been re-established, which is usually the case for prolonged periods in areas where refugees and displaced people are resettling. International agencies such as UNDP and the World Bank have a development perspective but do not have this capacity for working in difficult environments. We would strongly recommend that the British Government work with other donor countries to find ways to bridge this gap in the mandates of international organisations. In the meantime we would urge DFID, in coordination with other donors, to ensure that international agencies with a capacity for difficult environments, such as UNHCR, OCHA and WFP, have adequate funding to accompany the resettlement and re-integration of returning refugees, the demobilised and displaced people.

  46.  We would like to recommend that DFID analyse more carefully the question of State willingness and capacity. States with resource rents, and thus apparently financial capacity, may lack the many other capacities that are required to develop, manage and supervise effective public services, such as schools and health posts and agricultural extension, that have to be delivered in small units spread over vast areas. In fact the difficulties for states that apparently have financial capacity, because of resource rents, can be greater than for other states because of the high expectations.[96] We would therefore like to recommend that care be taken with the concept of unwilling states. We would also like to warn against the risk of a "dialogue of the deaf" between the British Government and a post-conflict fragile state: many post-conflict fragile states believe that they have often received bad advice from the international community and are reluctant to receive advice from the international community if it is delivered in the form of criticism and unless it is based on good evidence and fully-developed arguments. We recommend that the British Government continue to deepen their local knowledge of post-conflict fragile states and their analysis of how their capacities can be strengthened.

  47.  We would like to draw attention to the fact that certain post-conflict states have important extractive industries and thus potentially important resource rents. We would also like to draw attention to the extensive academic literature that shows the challenges that extractive industries pose for fragile states: the difficulties that fragile institutions have in managing the expectations of local people for immediate benefits the risk that local people come to place demands directly on foreign-owned extractive industries and the risks of conflict that can result (as in the Niger Delta). We would recommend that DFID work with British-owned extractive industries working in such areas so as to develop a clearer vision and commitment for how they will work in such situations, where government lacks the capacity to meet the expectations of local people in providing benefits from large-scale extractive industry projects.

January 2006






92   As is stated in "Why we need to work more effectively in fragile states" Published by the Department for International Development, January 2005. Back

93   For example, in the World Bank "Interim strategy note for Angola" of January 2005. Back

94   Such as the Extractive Industries Initiative and World Bank programmes to build national capacity. Back

95   World Bank "Making aid work in fragile states: cases studies of effective aid-financed programmes". 2004. Back

96   Myers, K (2005). Petroleum, poverty and security. London, Chatham House. Back


 
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