Practice:Buhle

Resource rich countries like Liberia and Sierra Leone have experienced civil wars related to the availability of diamonds within their borders. The Democratic Republic of the Congo (DRC), with its vast array of resources, is still riddled with conflict. Control of diamonds, coltan and timbers in the DRC has been a powerful incentive to prolong the country’s vicious civil war (Stiglitz, 2012). Other scholars have further buttressed this view of the resource curse, noting that, despite the prevalence of natural resources, many African countries have failed to transform these resources into meaningful wealth for its citizens. Collier (2007) posits that in most cases, the discovery of natural resources has led to wars, natural disasters and poor government policies that have derailed development and have been of source of conflict. Collier calls it the ‘natural resource trap’ where the resources become a curse rather than a blessing. Good, K (2005) state that the world is passing through a historic convergence of increasing demand for natural resources from emerging economies, historic prices across various commodity groups, a downward trend in resource supply and ecological stability, and the rise of inequality between those who develop and profit from such resources and the communities that host them. Khoday and Perch, (2012)The authors further state that much of the planet’s remaining resources are located in rural areas where more than two thirds of the 1.4 billion people currently living in extreme poverty reside despite the abundance of the natural resources which can be used to lift these communities out of extreme poverty if they are prudently utilised. Yet the transparent, accountable and participatory governance of natural assets is now a key policy challenge which needs urgent attention. Solutions to these challenges will require partnerships among government, business and civil society to rethink and transform the role of natural assets in development and craft social compacts for inclusive, sustainable growth (Khoday and Perch 2012). Social accountability, defined by the World Bank 2004 as an approach that relies on citizens’ engagement, in which ordinary citizens and civil society organisations participate directly or indirectly in exacting accountability. This is done through inclusive participation and decision making in natural resource policy formulation, implementation and benefit-sharing with the communities. For the purposes of this study, it will look at the predicament in Lupane, located in Matabeleland North in Zimbabwe. Matabeleland North Province is a large province in Western Zimbabwe with low rainfall and poor soil fertility. The province has the highest poverty rate in the country with 70 percent of its inhabitants classified as poor or extremely poor (Hill and Katerere, 2002). Traditionally, indigenous Zimbabweans in this region have survived by a combination of agriculture and use of forest resources. Lupane town is the main centre for the district and is the location of the Matabeleland North government head offices. It also houses the Provincial hospital which is still under construction. Lupane is rich in timber and methane gas. Exploration results suggest a deposit of13, 000,000 trillion cubic feet (370,000,000 km3) of 95% purity methane. Despite these resources the region suffers from low levels of development, characterised by chronic poverty, poor health and education facilities as well as poor infrastructure (Ministry of Energy and Power Development 2011) Against this background, this study seeks to make a contribution to the understanding of the factors inhibiting or militating against natural resources – driven economic development in the district of Lupane. Therefore the current research will be guided by the following questions.


 * 1.2 STATEMENT OF THE PROBLEM

Lupane town is the main centre for the district and is the location of the Matabeleland North government head offices. It also houses the Provincial hospital which is still under construction. Lupane is rich in timber and methane gas. Exploration results suggest a deposit of13, 000,000 trillion cubic feet (370,000,000 km3) of 95% purity methane. The Minister of Education, Sports and Culture has commented on the levels of poverty in the province, asserting that about 40% of the children in the province learn under trees because of a lack of classrooms and desks – yet is a province that produces timber. The minister also stated that the province only has 26 Advanced Level schools a number far too few to absorb the Ordinary level students (New Zimbabwe, 2012). Despite these resources the region suffers from low levels of development, characterised by chronic poverty, poor health and education facilities. There is no visible natural resources driven economic dev elopement in the district capital in terms of infrastructure like roads, schools and hospitals, as well as poor infrastructure (Ministry of Energy and Power Development 2011). The presence of the predatory state, that spawns lack of transparency and accountability is a phenomenon that hinters natural resources – driven economic development in resource rich countries. (Auty and Gelb 2001) put forward the argument that most African governments are plagued by elite corruption and mismanagement of natural resources, where they are swindled and wired into unbudgeted accounts. Auty (2001) further argues that resource abundance might lead to a rentier economy with a predatory state: corruption, political conflict and inequalities are rampant.



Economic institutions are poorly developed, human capital accumulation, entrepreneurship and innovative activity are crowded out and policy makers are more interested in resource transfers than developing and modernising the economy (Auty, 1997). A report by Transparency International Zimbabwe, 2012, posited that there is rampant corruption in the mining sector and advocated reforms to arrest this scourge, particularly because government ministers are behind most corrupt activities concerning extraction, sale and export of gold and diamonds in Zimbabwe. This can also be true for timber and methane gas exploitation Lupane. TIZ expounds that politicians are believed to be influencing the awarding of mining contracts. The minimal or lack of participation of locals in the management of natural areas in their communities is a factor that limits natural resources – driven economic growth. Resultantly, there is need to move toward Community Based Natural Resources Management like Botswana, an approach which combines rural development and natural resource conversation, and is based on the recognition that local people must have the power to decide over their natural resources in order to encourage sustainable development. Weak institutions for the management of natural resources also inhibit natural resources – driven economic development coupled with lack of strategic management of mineral resources in terms of good policy, legal frameworks and institutions capable of managing development path strategically (World Bank, 2006). The key message is that natural capital is an important share of total wealth, greater than the share of produced capital. This suggests that managing natural resources must be a key part of development strategies.