This book explores local content policies and their role in natural resource management within the realm of energy justice. Based on several country case studies it discusses the role of regional integration for such policies in Sub-Saharan Africa. Energy justice has been widely applied across different aspects of development, but here the principles of justice are specifically integrated with the management and implementation of oil and gas projects. Such an analysis offers novel means of implementing policies in local regions, moving away from a one-size fits all approach that leads to the ineffective transplantation of policies from developed economies to developing Sub-Saharan economies.
The book argues that with a regional approach, Sub-Saharan Africa can leverage natural resources, industrial parks, supplier clusters, regional financing mechanisms and regional training facilities which would drive down the costs of production, increase efficiency and integrate the local Sub-Saharan population into the oil and gas industry. This would result in the benefits as well as the environmental concerns and responsibilities intrinsic to these industries, being spread more equally amongst local and none local stakeholders.
This book will be a valuable resource for scholars and students as well as policy makers and practitioners in the areas of extractive industry-related disciplines energy governance, and economic development in Africa.
Author(s): Rukonge Sospeter Muhongo
Series: Energy, Climate and the Environment
Publisher: Palgrave Macmillan
Year: 2020
Language: English
Pages: 244
City: Cham
Preface
Contents
Abbreviations
List of Figures
List of Tables
1 Local Content an Introduction
1.1 What Is Local Content?
1.2 Why Is Local Content Important?
1.3 Channels of Local Content Policies
1.4 Purpose of the Book
1.5 Methodology
1.6 Book Overview
References
2 The Different Aspect of Local Content
2.1 Introduction
2.2 The History of Local Content Policies
2.3 Local Content Policy Tools
2.3.1 Policy Tools Affecting Local Content Design
2.4 Impact of Depletion Policies on Local Content Design
2.4.1 Introduction
Full Equity Participation
Carried Equity Participation
“Free” Equity Participation
2.5 Government Intervention
2.6 Benefits of Local Content Policies
2.7 Introduction
2.8 Disadvantages of Local Content Policies
2.9 Research Questions
2.10 Contextual Aspect of Developing Local Content Policies
2.11 Summary
References
3 Local Content and the Energy Justice Framework
3.1 Introduction
3.2 Energy Justice and Local Content Policies
3.3 Socio-Legal Snapshot of Local Content Policies
3.3.1 Distributional Justice
3.3.2 Procedural Justice
3.3.3 Recognition Justice
3.4 The Implementation of Energy Justice in Local Content Policy Adaptation and Implementation
3.5 Levels of Energy Law and Restorative Justice
3.6 Summary
References
4 In-depth Synopsis of Local Content Literature
4.1 Background of Local Content Policies
4.2 Searching for a Definition of LCP
4.3 Critical Review of the Theoretical Literature on Local Content Policies
4.3.1 Localism Theory
4.3.2 Regionalism Theory
4.3.3 Local Content Policies as Interdisciplinary Perspectives
4.3.4 Conclusion
4.4 Objectives of Local Content Policies
4.4.1 Provision of Local Employment
4.4.2 Provision of Local Goods and Services
4.4.3 Provision for Training of Local Workforce
4.4.4 Provision for Technological Transfer
4.4.5 Provision for Local Business Development
4.5 The Development of Local Content Metrics
4.5.1 Input Metrics for Measuring Local Supplier Development
4.5.2 Output Metrics for Measuring Supplier Development
4.6 Alternatives to Local Content Policies
4.6.1 Implementing Performance Requirements
4.6.2 Creating a Local Business Friendly Environment
4.6.3 Adopting Strict Corporate Social Responsibility
4.6.4 Supplier Development Programmes
4.6.5 Selected Industrial Policy Measures
4.7 Local Content Policies in the Oil and Gas Sector
4.8 Linkages in the Oil and Gas Industry
4.9 Factors that Promote and Constrain Linkage Promotion
4.10 New Trends of Local Content Policies
4.11 Energy Justice Gap Analysis
4.11.1 Distributional Justice
4.11.2 Procedural Justice
4.11.3 Justice as Recognition
4.12 Summary
References
5 Country Case Studies
5.1 Introduction
5.2 Country Selection Justification
5.3 The Economy Before Oil and Gas Discovery: A Cross-Country Analysis
5.4 Initial Government Intervention Mechanisms in the Oil and Gas Industry: A Cross-Country Analysis
5.5 Local Content Policy Framework: Cross-Country Analysis
5.5.1 Policy Statements
5.5.2 Licensing Regime
5.5.3 Primary Legislation
5.5.4 Petroleum Agreements
5.6 Initial Local Content Developments in Case Study Countries Country-by-Country Analysis
5.6.1 Norway
5.6.2 Nigeria
5.6.3 Brazil
5.6.4 East Africa
5.6.5 The Gulf of Guinea
5.6.6 Local Content Institutional Framework
5.6.7 An Illustration of Oil and Gas Sectoral Linkages
5.7 Examples of Energy Justice and Local Content in Sub-Saharan African Countries
5.7.1 Energy Justice Tenets and the Term “Local” in Local Content
5.7.2 Energy Justice and Local Content Requirements
5.8 Summary
References
6 Creating a Regional Content Policy
6.1 Introduction
6.2 Defining the Term “Regional Content”
6.2.1 The Term “Regional” in Regional Content Policy
6.3 The Rationale Behind Adopting a Regional Content Policy
6.3.1 The Decreasing Importance of National Policies
6.3.2 Market Failure
6.3.3 Systematic Failure in Sub-Saharan African Oil and Gas Industry
6.4 Characteristics Needed for the Success of a Regional Content Policy
6.4.1 The Regional Content Policy Must Be Adopted in a Rule-Oriented System
6.4.2 Dispute Settlement Procedures
6.4.3 Credibility and Legitimacy
6.4.4 Transparency of the Regional Policy
6.5 Regional Content Policy in Comparison to Other Instruments
6.5.1 Regional Content and Regional Industrial Policy
6.5.2 Regional Content and Special Economic Zones
6.5.3 Regional Content and Regional Value Chains
6.6 The Guiding Principles of a Regional Content Policy
6.6.1 Availability
6.6.2 Affordability
6.6.3 Due Process
6.6.4 Transparency and Accountability
6.6.5 Sustainability
6.6.6 Intra-Generational Equity
6.6.7 Inter-Generational Equity
6.6.8 Responsibility
6.7 Advantages and Disadvantages of a Regional Content Policy
6.7.1 Regional Linkages
6.7.2 Address Institutional Failures
6.7.3 Minimises Corruption and Patronage in the Oil and Gas Industry
6.8 Disadvantages of a Regional Content Policy
6.8.1 Strained Relations Within the Region
6.8.2 Increased Barriers
6.8.3 Damage of Infant Industries
6.9 The East African Community
6.9.1 Introduction
6.9.2 History of the East African Community
6.9.3 Reasons for Collapse of the First East African Community
6.9.4 Dominance of the New East Africa Community
East Africa’ Infrastructure
The Common Market
Growth Prospects
Political Stability
6.10 Reasons for Adopting a Regional Content Policy
6.11 Implementing a Regional Content Policy in East Africa
6.11.1 Approach for Adopting a Regional Content Policy
6.12 Regional Content Development in East Africa
6.12.1 Regional Content Development for Regional Suppliers
6.12.2 Regional Content Development for the Regional Workforce
The Regional Content Policy and the African Continental Free Trade Area (AfCTA)
The Regional Content Policy and the East Africa Treaty
Regional Content Policy and the Economic Community of West African States
6.13 Summary
References
7 Regional Content Policy Implications
7.1 Introduction
7.2 Regional Content Policy Implications
7.3 Harmonising National Content Requirements and Creating a Regional Hub
7.3.1 Creating a Regional Hub
7.4 Linkage and Regional Content Value Addition
7.5 Regional Content Value Addition
7.6 Regional Content and Stakeholder Engagement
7.7 Regional Content and Potential International Impact and Issues
7.8 Regional Content Metrics
7.9 Summary
References
8 Regional Content and Beyond
8.1 Introduction
8.2 Local Content Regimes in Sub-Saharan Africa
8.3 Lessons from Local Content Best International Practise
8.3.1 Introduction
8.4 Regional Content Policy and Future Considerations
8.5 Conclusion
References
Bibliography
Index
