Labour and employment creation with African resource development

Abstract

Natural resources are an assured source of government revenue, but this does not always translate into more jobs, better productivity or an increased demand for that country. Traditionally, the role of government in a resource-rich country has always been to act in the best interests of its citizens. In the case of natural resource-rich nations, this role also includes ensuring that jobs in the extractive sector are safe – both in the physical and financial sense. In such competitive environments, the private sector also has a fiduciary responsibility to ensure that all employees are fairly treated. However, it is evident that almost all African nations that are rich in resources are affected by lack of human development. This article examines the current state of affairs in the resource-rich African nations and their impact on human development. It focuses on how these resource-dependent economies are experiencing economic growth and why this growth does not directly translate into higher and better employment for the local populations. The article examines growth and human development from the perspectives of both the private- and public-sector actors. It recommends that private actors should have a complementary approach, through foreign direct investors or other modes, to the long-term policies and plans set out by the state. This approach would allow for successful intersectoral linkages and community development through higher job creation. It argues that the state is responsible for managing these natural resources and highlights the role of governance in this management. Governance issues, challenges, such as developmental gains, job creation, transparency and accountability are all addressed in the article. Finally, the article strongly recommends developing both human and institutional capital and regulating production.

Keywords: Resource development, resource curse, Africa, governance,
management.