Hostname: page-component-7c8c6479df-p566r Total loading time: 0 Render date: 2024-03-28T21:48:22.435Z Has data issue: false hasContentIssue false

The Norwegian Model of Oil Extraction and Revenues Management in Uganda

Published online by Cambridge University Press:  14 August 2017

Abstract:

According to the latest figures, Uganda has 6.5 billion barrels of oil deposits, which makes it the third-largest oil holder in sub-Saharan Africa. Currently the country is preparing its legal and institutional framework for proper management of the oil revenues. However, developing an effective oil sector in any of the SSA states has so far proved to be a futile task. To ensure that Uganda is not going to repeat the mistakes of Nigeria, the country’s leaders have requested Norway’s assistance in preparing Uganda’s oil sector for the upcoming production phase. The major objective of this article is to determine whether the Norwegian model of oil extraction and revenues management is transplantable to the Ugandan political, economic, and social conditions.

Résumé:

Selon les derniers chiffres, l’Ouganda dispose de 6,5 milliards de barils de gisements de pétrole, ce qui en fait le troisième plus grand détenteur de pétrole en Afrique subsaharienne. Présentement, le pays prépare son cadre juridique et institutionnel pour une meilleure gestion des recettes pétrolières. Cependant, le développement d’un secteur pétrolier efficace dans l’un ou plusieurs des États de l’Afrique subsaharienne s’est révélé jusqu’ici une tâche futile. Pour s’assurer que l’Ouganda ne répète pas les erreurs nigériennes, les dirigeants du pays ont demandé l’aide de la Norvège pour préparer le secteur pétrolier de l’Ouganda pour la prochaine phase de production. L’objectif principal de cet article est de déterminer si le modèle norvégien d’extraction pétrolière et de gestion des revenus peut être appliqué avec les conditions politiques, économiques et sociales de l’Ouganda.

Type
ARTICLES
Copyright
Copyright © African Studies Association 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aamodt, Ellen. 2012. “The Petroleum Fund Mechanism and Norges Bank’s Foreign Exchange Purchases for the GPFG.” Economic Commentaries no. 3. Oslo: Norges Bank Monetary Policy.Google Scholar
Adunbi, Omolade. 2011. “Oil and the Production of Competing Subjectivities in Nigeria: ‘Platforms of Possibilities’ and ‘Pipelines of Conflict.’” African Studies Review 54 (3): 101–20.CrossRefGoogle Scholar
Al-Kasim, Farouk. 2006. Managing Petroleum Resources: The “Norwegian Model” in a Broad Perspective. Oxford: Institute of Energy Studies.Google Scholar
Alao, Abiodun. 2007. Natural Resources and Conflict in Africa: The Tragedy of Endowment. Rochester, N.Y.: University of Rochester Press.CrossRefGoogle Scholar
Atkinson, Giles, and Hamilton, Kirk. 2003. “Savings, Growth and the Resource Curse Hypothesis.” World Development 31 (11): 1793–807.CrossRefGoogle Scholar
Auty, Richard. 1993. Sustaining Development in Mineral Economies: The Resource Curse Thesis. London: Routledge.Google Scholar
Auty, Richard. 1994. “The Resource Curse Thesis: Minerals in Bolivian Development, 1970–90.” Singapore Journal of Tropical Geography 15 (2): 95111.CrossRefGoogle Scholar
Auty, Richard. 2001a. Resource Abundance and Economic Development. Oxford: Oxford University Press.Google Scholar
Auty, Richard. 2001b. “Why Resource Endowments Can Undermine Economic Development: Concepts and Case Studies.” Paper Prepared for the BP-Amoco Seminar, Lincoln College, Oxford University.Google Scholar
Auty, Richard. 2001c. “The Political Economy of Resource-Driven Growth.” European Economic Review 45 (4): 839–46.CrossRefGoogle Scholar
Bariyo, Nicholas. 2011. “Uganda Buys Fighter Jets.” The Wall Street Journal, April 7.Google Scholar
Bayulgen, Oksan. 2010. Foreign Investment and Political Regimes: The Oil Sector in Azerbaijan, Russia, and Norway. Cambridge, U.K.: Cambridge University Press.CrossRefGoogle Scholar
Behrman, Jere. 1987. “Commodity Price Instability and Economic Goal Attainment in Developing Countries.” World Development 15 (5): 559–73.CrossRefGoogle Scholar
Collier, Paul. 2005. “Economic Policy in Post-Conflict Societies.” In Post-Conflict Economies in Africa, edited by Fosu, Augustin Kwasi and Collier, Paul, 45–56. New York: Palgrave Macmillan.CrossRefGoogle Scholar
Collier, Paul. 2006. “African Growth: Why a ‘Big Push’?” Journal of African Economies 15 (Supplement 2): 188211.CrossRefGoogle Scholar
Cuddington, John. 1992. “Long Run Trends in 26 Primary Commodity Prices: A Disaggregated Look at the Prebisch-Singer Hypothesis.” Journal of Development Economics 39 (2): 207–27.CrossRefGoogle Scholar
The Economist . 2013. “Norway. The Rich Cousin.” February 2.Google Scholar
Eifert, Benn, Gelb, Alan, and Tallroth, Nils. 2002. The Political Economy of Fiscal Policies and Economic Management in Oil Exporting Countries. World Bank Policy Research Paper 2899. Washington, D.C.: World Bank.Google Scholar
Frynas, Jedrzej. 2000. Oil in Nigeria: Conflict and Litigation between Oil Companies and Village Communities. Hamburg: LIT Verlag.Google Scholar
Frynas, Jedrzej. 2004. “The Oil Boom in Equatorial Guinea.” African Affairs 103 (413): 527–46.CrossRefGoogle Scholar
Gakwandi, Arthur, ed. 1999. Uganda Pocket Facts: A Companion Guide to the Country, Its History, Culture, Economy and Politics. Kampala: Fountain Publishers.Google Scholar
Gelb, Alan, et al. 1988. Windfall Gains: Blessing or Curse. New York: Oxford University Press.Google Scholar
Gelb, Alan, and Turner, Ginger. 2007. Confronting the Resource Curse: Lessons of Experience for African Oil Producers. Washington, D.C.: World Bank.Google Scholar
Gylfason, Thorvaldur, Herbertsson, Tryggvi Thor, and Zoega, Gylfi. 1999. “A Mixed Blessing: Natural Resources and Economic Growth.” Macroeconomic Dynamics 3: 204–25.CrossRefGoogle Scholar
Haber, Stephen, and Menaldo, Victor. 2011. “Do Natural Resources Fuel Authoritarianism? A Reappraisal of the Resource Curse.” American Political Science Review 105 (1): 126.CrossRefGoogle Scholar
Hauser, Ellen. 1999. “Ugandan Relations with Western Donors in the 1990s: What Impact on Democratisation?” Journal of Modern African Studies 37 (4): 621–41.CrossRefGoogle Scholar
Henstringe, Mark, and Page, John. 2012. Managing a Modest Boom: Oil Revenues in Uganda. OxCarre Research Paper 90. Oxford: Oxford Centre for the Analysis of Resource Rich Economies (OxCarre).Google Scholar
Karl, Terry Lynn. 1997. “The Paradox of Plenty: Oil Booms and Petro-States.” Los Angeles: University of California Press.CrossRefGoogle Scholar
Kaznacheev, Peter. 2013. “Resource Rents and Economic Growth.” Moscow: Russian Presidential Academy of National Economy and Public Administration.Google Scholar
Kopiński, Dominik, Polus, Andrzej, and Tycholiz, Wojciech. 2012. New Oil Frontiers: Investors’ Guide to the Oil Sector in Sub-Saharan Africa. Warsaw: CEED Institute.Google Scholar
Kopiński, Dominik, Polus, Andrzej, and Tycholiz, Wojciech. 2013. “Resource Curse or Resource Disease? Oil in Uganda.” African Affairs 112: 583–601.CrossRefGoogle Scholar
Larsen, Erling. 2006. “Escaping the Resource Curse and the Dutch Disease: When and Why Norway Caught Up with and Forged Ahead of Its Neighbors.” American Journal of Economics and Sociology 65 (3): 605–40.CrossRefGoogle Scholar
Le Billon, Phillippe, ed. 2005. The Geopolitics of Resource Wars: Resource Dependence, Governance and Violence. London: Routledge.Google Scholar
Listhaug, Ola. 2005. “Oil Wealth Dissatisfaction and Political Trust in Norway: A Resource Curse?” West Europeans Politics 28 (4): 834–51.CrossRefGoogle Scholar
Lutz, Matthias. 1994. “The Effects of Volatility in the Terms of Trade on Output Growth: New Evidence.” World Development 22 (12): 1959–75.CrossRefGoogle Scholar
Mbaku, John. 2004. Institutions and Development in Africa. Trenton, N.J.: Africa World Press.Google Scholar
Miirima, Ford. 2013. Oil Discovery 2006: The Role Ugandans Played. Kisubi: Marianum Press.Google Scholar
Mikesell, Raymond. 1997. “Explaining the Resource Curse, with Special Reference to Mineral-Exporting Countries.” Resources Policy 23 (4): 191–99.CrossRefGoogle Scholar
Ministry of Energy and Mineral Development. 2016. “Government of Uganda Issues Petroleum Production Licenses to Tullow Uganda Operations Pty Limited (Tullow) and Total E&P Uganda B.V. (Total).” Kampala: Ministry of Energy and Mineral Development. www.energyandminerals.go.ug.Google Scholar
Ministry of Energy and Mineral Development, Directorate of Petroleum. 2015. “Brief History.” Kampala: Ministry of Energy and Mineral Development. www.petroleum.go.ug.Google Scholar
Moran, Cristian. 1983. “Export Fluctuations and Economic Growth: An Empirical Analysis.” Journal of Development Economics 12 (1): 195–218.CrossRefGoogle Scholar
Mwenda, Andrew, and Tangri, Rorger. 2005. “Patronage Politics, Donor Reforms, and Regime Consolidation in Uganda.” African Affairs 104 (416): 449–67.CrossRefGoogle Scholar
Neary, Peter, and Corden, Max. 1982. “Booming Sector and De-Industrialisation in a Small Open Economy.” The Economic Journal 92 (368): 825–48.Google Scholar
Neary, Peter, and Wijnbergen, Sweder Van. 1986. Natural Resources and the Macroeconomy. Wijnbergen Centre for Economic Policy Research. Oxford: Blackwell.Google Scholar
New African . 2010. “British MP Condemns Uganda’s Anti-Gay Bill.” February.Google Scholar
Norges Bank Investment Management. 2015. “About the Fund: Market Value.” www.nbim.no.Google Scholar
Norwegian Agency for Development Cooperation. 2014. “Oil for Development Programme. Annual Report 2013.” Oslo: Norwegian Agency for Development Cooperation.Google Scholar
Norwegian Agency for Development Cooperation. 2015. “Uganda.” Norwegian Agency for Development Cooperation. www.norad.no.Google Scholar
Norwegian Ministry of Finance. 2013–14. “The Management of the Government Pension Fund in 2013.” www.regjeringen.no.Google Scholar
Office of the Vice Chancellor at Makerere University. 2015. “Makerere University Celebrates Partnership with Government of Norway. “ www.vc.mak.ac.ug.Google Scholar
Oil in Uganda. 2015. “Norway Model Not the Best for Uganda, Says Leading Oil Commentator.” www.oilinuganda.org.Google Scholar
Saudi Arabia Press Agency. 2005. “Norway Cuts Aid to Uganda over Political Concerns.” www.spa.gov.sa.Google Scholar
Ross, Michael. 2001. “Does Oil Hinder Democracy?” World Politics 53 (3): 325–61.CrossRefGoogle Scholar
Ross, Michael. 2015. “What Have We Learned about the Resource Curse?” Annual Review of Political Science 18: 239–59.CrossRefGoogle Scholar
Royal Norwegian Embassy in Kampala. 2015. “Diplomatic Relations between Norway and Uganda.” www.norway.go.ug.Google Scholar
Sachs, Jeffrey, and Warner, Andrew. 1999. “Natural Resource Abundance and Economic Growth.” National Bureau of Economic Research Working Paper no. 5398. Cambridge, Mass.: National Bureau of Economic Research.Google Scholar
Sachs, Jeffrey, and Warner, Andrew. 2001. “Natural Resource and Economic Development: The Curse of Natural Resources.” European Economic Review 45: 827–38.CrossRefGoogle Scholar
Sarraf, Maria, and Jiwanji, Moortaza. 2001. “Beating the Resource Curse: The Case of Botswana.” Environmental Economics Series Paper no. 83. Washington, D.C.: World Bank.Google Scholar
Segura, Alonso. 2013. Management of Oil Wealth under the Permanent Income Hypothesis: The Case of São Tomé and Príncipe. IMF Working Paper no. 06/2013. Washington, D.C.: World Bank. https://papers.ssrn.com.Google Scholar
Shaxson, Nicholas. 2007. Poisoned Wells: The Dirty Politics of African Oil. New York: Palgrave.Google Scholar
Shepherd, Ben. 2013. Oil in Uganda: International Lessons for Success. Washington, D.C.: Chatham House. www.chathamhouse.org.Google Scholar
Smith, Benjamin. 2007. Hard Times in the Lands of Plenty: Oil Politics in Iran and Indonesia. Ithaca, N.Y.: Cornell University Press.Google Scholar
Snyder, Richard, and Bhavnani, Ravi. 2005. “Diamonds, Blood, and Taxes: A Revenue-Centered Framework for Explaining Political Order.” The Journal of Conflict Resolution 49 (4): 563–97.CrossRefGoogle Scholar
Statoil. 2015. “Our History.” www.statoil.com.Google Scholar
Stokke, Olav. 1989. “The Determinants of Norwegian Aid Policy.” In Western Middle Powers and Global Poverty: The Determinants of the Aid Policies of Canada, Denmark, the Netherlands, Norway and Sweden, edited by Stokke, Olav, 159224. Uppsala: Norwegian Foreign Policy Studies.Google Scholar
Temple, Jonathan. 2003. “Growing into Trouble: Indonesia after 1966.” In In Search of Prosperity: Analytic Narratives on Economic Growth, edited by Rodrik, Dani, 152–83. Princeton, N.J.: Princeton University Press.Google Scholar
Thurber, Mark C., Hults, David, and Heller, Patrick R. P.. 2010. The Limits of Institutional Design in Oil Sector Governance. Stanford, Calif.: Stanford University Press.Google Scholar
Treanor, Sarah. 2012. “How Norway Has Avoided the ‘Curse of Oil.’” BBC, August 27.Google Scholar
Tyler, Stephen. 1999. “Policy Implications of Natural Resources Conflict Management.” In Cultivating Peace: Conflict and Collaboration in Natural Resources Management, edited by Buckles, Daniel, 263–80. Washington, D.C.: World Bank.Google Scholar
Wakeman-Linn, John, Mathieu, Paul, and Selm, Bert van. 2003. “Oil Funds in Transition Economies: Azerbaijan and Kazakhstan.” In Fiscal Policy Formulation and Implementation in Oil-Producing Countries, edited by Davis, Jeffrey M., Ossowski, Rolando, and Fedelino, Annalisa, 339–58. Washington, D.C.: International Monetary Fund.Google Scholar
Wayland, Edward James, and Survey, Uganda Geological. 1926. Petroleum in Uganda (Geological Survey of Uganda Memoir, 1). Kampala: Government Printer, Uganda.Google Scholar
Whitworth, Alan, and Williamson, Tim. 2010. “Overview of Ugandan Economic Reform since 1986.” In Uganda’s Economic Reforms: Insider Accounts, edited by Kuteesa, Florence et al., 134. Oxford: Oxford University Press.Google Scholar
Wood, George. 2004. “Business and Politics in a Criminal State: The Case of Equatorial Guinea.” African Affairs 103 (413): 547–67.CrossRefGoogle Scholar
World Bank. 2015a. “Country Data: Uganda.” data.worldbank.org.Google Scholar
Bank, World. 2015b. “Country Data: Equatorial Guinea.” data.worldbank.org.Google Scholar