Institutional Design and Capacity to Enhance Effective Governance of Oil and Gas Wealth: The Case of Kurdistan Region

verfasst von: Khazal Abdullah Auzer

Verlag: Springer Singapore

Buchreihe : Perspectives on Development in the Middle East and North Africa (MENA) Region

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book presents a ‘critical reappraisal’ of the resource curse thesis and extends the analysis to consider political and social dimensions, and thus, the importance of structure in the petroleum sector’s governance model. It examines major challenges surrounding the governance of petroleum resources, and the implications for the economic growth and development of hydrocarbon-abundant countries as a result of ineffective economic, political, and social mechanisms. The book subsequently investigates a range of causal factors that may promote or hinder the effective management of oil and gas resources in the Kurdistan Region, which also has implications for the security of the wider region and for global energy security. The book also seeks to arrive at lessons learned and policy guidelines to help inform other new petroleum-exporting countries and regions about how to best manage their newfound wealth.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Overview

Abstract

The large and growing body of resource curse literature has used either quantitative or qualitative cross-country approaches to investigate the determinant factors contributing to poor economic performance in natural resource-rich countries, especially petroleum-driven economies, such as Kurdistan Region. Few research studies have used mixed methods to study the resource curse in order to gain a deeper understanding of the challenges facing petroleum-exporting countries that have been unable to convert their petroleum wealth into long-term sustainable development. Author offers different methods to explore the economic, political, and social channels behind the resource curse theory. This chapter explains mixed method study, which consists of three phases: a quantitative cross-country (econometric) analysis, a qualitative cross-country (comparative) policy analysis, and a qualitative case study (semi-structured interviews).

Khazal Abdullah Auzer

Chapter 2. Challenges in Petroleum Rich Countries

Abstract

This chapter identifies the main channels through, which oil and gas resources may promote or impede economic growth from a broader social perspective. In addition to the economic and political channels of the resource curse, socio-economic challenges, such as a low level of human capacity building, may exacerbate the adverse effect of petroleum resources on long-term economic growth. Petroleum states under-invest in education and workforce skills because their economies are based on their endowments of petroleum resources. A key shortcoming of the resource curse literature is the lack of clear understanding of the effect of the managerial model of the oil sector, in particular its effects on the sector’s economic performance. Few case studies have focused on effective administrative design as a causal factor affecting the performance of the oil sector.

Khazal Abdullah Auzer

Chapter 3. Transmission Channels of the ‘Resource Curse’ Reappraised

Abstract

This chapter reappraises the negative relationship between natural resources and economic growth by applying empirical cross-sectional and panel data analysis. The empirical results show the importance of economic, political and social transmission mechanisms of the resource curse with regard to the different types of natural resource, particularly in fuel-exporting countries. The results of both cross-sectional and panel data models indicate that high economic dependence on fuel exports leads to lower economic performance. Main findings show that the effect of institutions is lower in highly fuel-dependent countries than in those with economies less reliant on fuel export revenues. Moreover, the economic performance of fuel-dependent economies is more likely to suffer from the detrimental effects of the resource curse.

Khazal Abdullah Auzer

Chapter 4. Lessons from Other Petroleum-Rich States

Abstract

The aim of this chapter is to assess the various policies adopted with respect to petroleum resource management in Norway, Kuwait, Azerbaijan and Nigeria. The author conducts a comparative analysis of the institutional design, human resource capacity development, and revenue management policy frameworks implemented by the four petroleum-producing countries in order to identify best practice. The main findings indicate that a petroleum resource curse is not inevitable. Prudent and sound institutional, human resource capacity building and petroleum revenue management policies help avoid transmission of the resource curse. This study suggests that a well-designed institutional governance model for the petroleum industry is vital to addressing common problems associated with effective economic and human resource development.

Khazal Abdullah Auzer

Chapter 5. Importance and Development of the Oil and Gas Industry in the Iraqi Kurdistan Region

Abstract

The Kurdistan region has plentiful oil and gas reserves. Despite the opportunities generated by the oil and gas industries, they may also bring risks of high economic dependence on the oil and gas sector due to KRG’s failure to diversify the economy away from resource extraction towards productive and sustainable activity, as well as a worsening of the relationship between the people and the government, through economic distortion, lack of transparency and accountability, increased environmental pollution and internal tensions. Main findings show that oil and gas discovery and production lead the people of the Kurdistan region to expect jobs and prosperity. To the extent that these are not realised, the risk of social unrest may increase.

Khazal Abdullah Auzer

Chapter 6. Management of Oil and Gas Resources in Iraqi-Kurdistan

Abstract

Author conducts the qualitative interviewing analysis to provide an in-depth understanding of the challenges facing the newly emerging oil and gas sector in the Kurdistan Region. The results show that multiple issues confront the petroleum industry, including institutional, human resource and geopolitical challenges. Lack of accountability and transparency, ineffective checks and balances, a growing unemployment rate, and ineffective management of public expectation with respect to the new emerging petroleum industry are the major institutional and social challenges facing the Kurdistan Regional Government. The findings also show that high dependency of the Kurdistan region’s economy on the hydrocarbon revenues and more importantly ineffective and un-transparent petroleum revenues are the key economic challenges. In addition to the challenges the Kurdistan region’s oil and gas sector faces on institutional, human resource, and economic development, there are geopolitical issues, such as being a landlocked region dependent on neighbouring states for market access, the risk of Islamic State attack, and fluctuations in oil prices.

Khazal Abdullah Auzer

Chapter 7. General Conclusions and Discussion

Abstract

This chapter discusses causal explanations of the resource curse confronting most petroleum-exporting countries by investigating the political, social and economic factors through which petroleum revenues are converted into a curse rather than a blessing. The findings reveal that well-designed governance of the oil and gas sector is a key determinant of the oil and gas producing countries’ success in the management of petroleum resources. The findings of the research are significant, given that few previous studies in the resource curse literature have applied a mixed methods approach. This research has shown that empirical studies are insufficient to assist petroleum exporters in addressing the transmission channels of the resource curse, whereas case studies help to highlight policy options that will deal most successfully with channels contributing to the curse. The implications of this research may be useful in helping new petroleum exporters to avoid the resource curse.

Khazal Abdullah Auzer

Backmatter

Titel: Institutional Design and Capacity to Enhance Effective Governance of Oil and Gas Wealth: The Case of Kurdistan Region
verfasst von: Khazal Abdullah Auzer
Verlag: Springer Singapore
Electronic ISBN: 978-981-10-4518-9
Print ISBN: 978-981-10-4517-2
DOI: https://doi.org/10.1007/978-981-10-4518-9