Social Accountability in the Extractive Industries: A Review of the Ethiopian Experience

Abstract

Resource rich countries of Africa, except few, have not succeeded in reducing
poverty and improving the living conditions of the majority of poor citizens.
Lack of a proper social accountability system and practice are among the major
factors contributing to the problem. As a result, social accountability has
received attention from policy makers, policy researchers and donors. This
research, based on desk reviews, tries to discuss the concepts, actors and
mechanisms of social accountability and then reflects on the Ethiopian
experience in general and on legal regimes for social accountability in the
extractive industries in particular. Assessment revealed that the concept of social
accountability is pretty new to Ethiopia. Issues and concerns of social
accountability constitute important components of human rights. In light of this,
the legal regimes for the extractive industry in Ethiopia have provided basic legal
and regulatory frameworks for social accountability. Nonetheless, most of the
legal and regulatory provisions are not sufficient to fully promote and ensure
social accountability. The laws have provided discretionary powers to public
agencies to decide on citizens’ rights. Local peoples’ objections to any project
to be implemented on their land and territories, or to any proposed displacement
by extractive project, or any disagreement with a project owner on the amount
of compensation is not binding. This is against the principles of social
accountability in the extractive industries. Effective social accountability
depends on the proper functioning of the supply and demand sides of social
accountability. Provision of legal and regulatory frameworks by government to
govern decisions and actions of implementing government agencies and private
sector actors is not enough. There should be demand from citizens in general and
the local people in particular where projects are implemented.