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Article

28 Jan 2014

Author:
Keith Slack, Thomas Reuters Foundation

Four tough issues to address to beat the "resource curse" [Africa]

...[It is time] once again...for Mining Indaba, the largest annual global mining industry conference. There will be a lot of networking...but probably not much discussion of the tougher issues facing African countries as they try to use...mineral resources to develop their nations [such as]...1. African countries...will never develop based on the export of raw ores alone. Adding value or “beneficiation” is critical to helping economies grow...2. African countries should assert their rights to keep more of the profits from their own resources...Zambia...estimates that it is losing $2 billion per year...due to tax avoidance...3...[C]ompanies [should]...apply corporate social responsibility principles to their fiscal practices...making deal-making and contracting fully transparent. 4. The political dynamics around resource revenue management have to be addressed. [G]overnment officials..should ensure strict compliance with global anti-corruption regulations...[and] support effective citizen oversight...[and] formal oversight mechanisms...[such as] environmental and human rights agencies...[T]he Alternative Mining Indaba, a civil-society convened parallel event...seek[s] to respond to some of these gaps in...the official conference...[refers to Areva, International Council on Mining & Metals, Rio Tinto and Vale]