G77 Commitment to Transparency in the Exploitation of Natural Resources

The G77 and China bet today by institutional transparency as a way to improve revenue from the exploitation of natural resources and that these economic benefits result in improved quality of life of the population.

That was reflected in the outcome document of the meeting Ministers of Energy and Hydrocarbon Block emerging countries maintained between yesterday and Saturday in the Bolivian city of Tarija (south) to reflect on how best to manage natural resources from the I state.

According to the findings, which have 24 points, “we need to build transparent institutions that will improve revenues from direct income from natural resources through royalties, taxes and other mechanisms used in the G77”.

Senior officials also stressed the need to “strengthen cooperation among members” of the block with “South-South cooperation, including industrial parks and technology transfer.”

The document reiterates that the authority over natural resources “of the principle of inalienable ownership and sovereignty of peoples” in his administration “for the sustainable benefit of nations”.

“These policies should be designed such that involve all stakeholders in economic and social life of the people, empowering the latter regarding the use and allocation of natural resources since last to the exploitation of same is to generate lasting benefits for the people, “says another conclusion.

The G77 believes that “the benefits from the exploitation of natural resources should be reflected in the economic and social development” of each country and allocated to achieve “poverty reduction, industrial development in areas not related to the extractive sector and diversification of productive matrices countries “.

For this, the group believes necessary “to strengthen the capacities and responsibilities of governments, accompanied by a strong legal framework, based on a regulatory framework and instruments and policy measures that will allow a safe, inclusive and sustainable industrialization”.

In addition, the letter notes that nationalization processes developed in some G77 countries “has been performed under scenarios of democracy (…) breaking paradigms past and pointing to sustainable public-private relationships over time”.

The conclusions place particular emphasis on industrial diversification “to generate multiplier effects on other sectors of the economies” and reduce “dependence on a few sectors based producers strategic natural resources.”

It is also committed to “inclusive and sustainable industrial development” and creating “economic sectors in harmony with the environment and recycling industries and environmental services.”

Finally, the G77 called on the United Nations Industrial Development Organization (UNIDO) to intensify its efforts to support member countries in all the targets in the conclusions.

The meeting, organized by Bolivia, which holds the rotating presidency of the bloc, participated representations of Argentina, Bangladesh, Burkina Faso, Colombia, Chile, Ecuador, Haiti, Lesotho, Madagascar, Malaysia, Morocco, Nepal, Senegal, Tanzania, Uruguay, Venezuela and Zambia, among other nations.

The G77 brings together a total of 133 countries, in June this year met in the Bolivian city of Santa Cruz to commemorate 50 years of the group and discuss an agenda for international development post 2015.