The Oil Curse: Can Uganda Get It Right Where Others Have Failed?

The Ugandan public needs to brace itself for tough times ahead following the discovery of oil in parts of the country. The recent warning by Energy Minister Hilary Onek to companies and NGOs against sensitizing the public to demand transparent and accountable management of the oil and gas resources, apart from displaying a lack of understanding of the role of civil society in governance, is a resounding warning of tough times ahead.

It is telling that these utterances were made during a sumptuous dinner hosted by Tullow Oil, a company that has been exploring oil in Uganda since January 2006. With more than half of the world’s poorest people living in countries rich in natural resources, the problems associated with oil, gas and mining booms—increased corruption, conflict and environmental degradation—such a comment coming from the head of an energy ministry should be of great concern to Ugandans.

In the past, the discovery of oil was a boon and oil extraction was seen as a powerful driver of economic development. Today, abundant evidence is available to show that most developing countries that exploit extractive resources in and outside Africa are more prone to corruption, bad governance, civil strife, and cross-border conflicts.

It is also a fact that autocratic regimes all over Africa use natural resources to build political patronage networks that finance and perpetuate their regimes in power hence undermining democratic governance. Chad, Angola, Niger, the DR Congo, and Sudan are more than textbook examples of how increased natural resource rents have offered African governments more opportunities and greater incentives to intimidate dissenting voices and pay off supporters to stay in power.

In such countries, civil society activists pressing for revenue transparency, greater disclosure of payments from companies to governments, contracts and information on how revenues are spent have faced harassment, criminal charges and jail time. With the recent threats bandied around, the continued collusion, secrecy and exclusionist policies, will Uganda get it right where others have failed?

The Ugandan government should know that that civil society groups have a role beyond nursing orphans to avert the potential resource curse. Civil society acts as intermediaries and interpreters between community and governmental actions and policy.

The existence of civil society is based on the fundamental right of private citizens to gather, discuss and express their views on public matters and engage in activities to promote the social, cultural, economic and political good of society. The open practice of this right creates the reality of “public spaces”, which are occupied by civil society organizations. While the mandate of certain civil society groups may include taking care of orphans—who should be the government’s responsibility anyway—it must not be limited to this.

The Ugandan government must realize that the extent to which private citizens are permitted to engage openly in governance and accountability discourses and activities with and outside the influence of the government of the day is a measure of the quality of a country’s democracy and the strength of its institutions.

The Ugandan government must refrain from intimidating and harassing civil society activists and instead allow the public to access information it holds, be transparent in any negotiations it undertakes, and involve local communities and other interest groups for equitable gains from the oil extraction. To avoid rumors doing rounds in the country, the government should also lead in the initiative to educate the public and avail adequate information to dispel potent fears about the likelihood of massive environmental degradation, community displacements and increased poverty due to extraction activities. But to win public confidence, it must first embrace greater openness.

Ugandans must also realize that the oil curse can only be avoided if they rise up and demand accountability from their government. They should know that the discovery of oil is definitely going to affect the very fabric of this society and a passive attitude will definitely be costly to the ordinary person. The Ugandan public needs to be more vigilant and actively involved in the management of the oil resource.

The public should borrow a leaf from the 2007 people’s struggle against the proposed giveaway of Mabira Forest Reserve. The struggle was a clear demonstration of what increased civic competence and consciousness, understanding and appreciation of the concept of access rights can do in the governance and conservation of natural resources. Mabira Forest Reserve in Uganda is still standing, thanks to the vigilance of civil society in the country.

The civil society on the other hand should strengthen their common position on revenue issues and work together for collective security of groups threatened by state action. They should explore new communication channels, reach out to allies, and cultivate strategic relations with government functionaries and partners that are open to reform.