Doing Business in Fragile States: The Private Sector, Natural Resources and Conflict in Africa
Publisher: High Level Panel on the Post-2015 Development Agenda
Author(s): Hany Besada
Date: 2013
Topics: Extractive Resources, Governance
Countries: Botswana, South Sudan
One area of emerging consensus is the critical importance of governance – the deficiency or effectiveness of public and private sector institutions – as the key to understanding the prevalence or absence of violent conflict over natural resources in Africa. Weak governments are unable or unwilling to invest resource revenue in sustainable economic development or to provide the necessary regulatory environments for accountable business practices. In contrast, countries such as Botswana and Namibia, successfully channelled their resource wealth towards sustained economic growth and political stability –with outcomes that are commonly attributed to strong public and private sector institutions, such as the rule of law, transparency, and decentralized governance.