Development and implementation of a curriculum for peer-learning workshops on Good Financial Governance in the extractive sector

Pouring of liquid metal in open hearth workshop

The extractives sector plays an indispensable role in the economic development models and plans of many regions and countries. Based on its enormous economic potential, it is often a preferred pathway for poverty alleviation and development, especially since it promises a relatively quick return on investment. However, in order to reap the positive effects, extractive industries must follow a strong commitment to international performance standards and be overseen by a robust regulatory environment and effective government institutions. Transparency; including revenue disclosure, effective control of mining operations, and good financial governance (GFG) that includes parliament and civil society effectively monitoring the budget are indispensable to allowing the extractives sector to play a positive role and develop its transformative potential in terms of poverty alleviation and sustainable development. In the absence of these preconditions, the extractive industry’s development brings with it a suite of enduring costs and impacts at various stages of the mining lifecycle, including a number of short- and long-term negative ecological and social impacts.

Together with a group of leading experts from LBN Strategies, OpenOil, and the German Development Institute, adelphi has developed a curriculum for a training course titled “Introduction to Good Financial Governance (GFG) in the Extractives Sector” with the above challenges in mind. The project was financially supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and commissioned on behalf of the German Federal Ministry of Development and Economic Cooperation (BMZ). The training course aims to support GFG implementation in partner countries through capacity building and fostering successful extractive sector management by encouraging cooperation among different actors across the sector. The modules and training materials can be used in different settings and address a variety of topics along the extractive industry’s value chain, such as the decision to extract, contract negotiations, and collection and spending of revenues, among others. A trainer’s manual offers guidance for trainers. Introductory presentations and interactive training exercises help design dynamic and interactive training seminars.

In developing the curriculum, adelphi, its partners, and GIZ conducted two pilot training courses for representatives from the finance, planning, and mining authorities in Sierra Leone and Liberia and for representatives of the petroleum sector in Ghana.