The US and Europe are moving towards rules that would require their oil and mining industries to reveal all payments to foreign governments. Resource-rich but poor Africa will benefit from such transparency.
One of the world’s great paradoxes is that Africa is abundant with minerals, such as cobalt, diamonds, and oil, and yet the average African’s income has barely budged in decades. More than half of the continent’s 1 billion people live on less than a dollar a day.
Where does all that mineral wealth go? Most of it is secretly divided up between greedy local elites tied to government and the foreign companies that extract and export the minerals. These deals help explain why nearly half of the world’s most corrupt countries are in Africa.
MONITOR'S VIEW: Seeing Africa as an investment, not charity
For 10 years, an effort that was begun by former British Prime Minister Tony Blair has tried to end this “paradox of plenty.” It aims to shed light on the flow of money from foreign firms to mineral-rich states around the world.
A special focus is on Africa, which ranks first or second in seven vital minerals, such as platinum. Its mineral exports are worth six times more than all foreign aid to the continent.
The idea is that citizens can demand accountability from their leaders if they know where foreign payments, such as taxes and royalties, actually go. Bribery is more easily spotted. Potentially, fewer violent conflicts will engulf nations such as Congo over the issue of extracting natural resources.