Proper management of natural resources can make or break development – Sharma

Commonwealth Secretary-General Kamalesh Sharma told delegates at the launch of the first Commonwealth Natural Resources Forum that the proper management of natural resources could make or break a country’s development.

Speaking at the start of the three-day forum on 6 April, Mr Sharma said that regulating the extraction of natural resources was not only important for our environmental sustainability but also to ensure we could provide for future generations.

“If managed properly, the natural resources sector is probably the only economic sector that can, on its own, help lift a country out of underdevelopment in a relatively short period of time, if wisely used,” he said.

“Mismanaged, revenues from the natural resources sector can destabilise an economy, fuel conflict and war and corruption. So, too, can they have a very negative impact on the environment, and create lasting damage to human habitat.

“That is why the Commonwealth Secretariat’s objective is to ensure that, through the transparent and accountable management of revenues accruing from natural resources, countries can benefit from increased growth, achieve economic development and poverty reduction, and transform their societies.”

Delegates from 18 Commonwealth countries have gathered at the Secretariat’s headquarters in London for the forum to discuss the key issues in the development and management of their country’s natural resources, including the design of internationally acceptable and sustainable laws and contracts for the oil, gas and mining sectors.

With depleting resources in many of the world’s largest oil fields, oil and gas prices continue to climb as demand outstrips supply. Mr Sharma said the delegates were now faced with the challenge of securing the supply of these conventional sources of energy while also being aware of the environmental, social and accountability issues. He added that provisions must be made to secure some of the financial assets accruing from the extraction of natural resources to benefit future generations.

“Around the world, companies have been courting countries to secure access to their resources. Sometimes, this is done by exercising pressure,” he said.

“This is why the Secretariat believes that the work we are doing in putting in place adequate legal and commercial frameworks, strong institutions and good governance principles is essential.”

He continued that the recent Gulf of Mexico oil spill and the serious environmental damage caused by the accident is why the Secretariat has increasingly focused its work on environmental issues, such as decommissioning of mining or petroleum facilities and drafting environmental legislation.

During the forum, delegates will hear from representatives from the public and private arena and Commonwealth member states Belize, Pakistan, Tanzania, and Trinidad and Tobago, who will share their own experiences of developing their natural resources sector.