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  • Author: Anne Mette Kjær
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The Ugandan economy resembles many other economies in sub-Saharan Africa in that it has a large subsistence sector, relies on a few primary commodities for export and depends on aid to finance its public services. Oil and minerals have so far not been important to the economy. However, this might change as an estimated 3.5 billion barrel oil reservoir has been discovered in Uganda's Western and Northwestern Albertine Graben. Minerals have also been found and are being sold off as concessions. If oil revenues start to be mobilized as currently planned (2016-17), significant changes in not only government finance but also in the governments' relationships with donors and in state–society relations are likely to occur. The consequences for local communities and the environment are also likely to be significant.
  • Topic: Development, Economics, Oil, Natural Resources, Foreign Aid, Fragile/Failed State, Foreign Direct Investment
  • Political Geography: Uganda, Africa
  • Author: Michael W. Hansen
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: If African developing countries are to benefit fully from the current boom in foreign direct investment (FDI) in extractives (i.e. mining and oil/gas), it is essential that the foreign investors foster linkages to the local economy. Traditionally, extractive FDI in Africa has been seen as the enclave economy par excellence, moving in with fully integrated value chains, extracting resources and exporting them as commodities having virtually no linkages to the local economy. However, new opportunities for promoting linkages are offered by changing business strategies of local African enterprises as well as foreign multinational corporations (MNCs). MNCs in extractives are increasingly seeking local linkages as part of their efficiency, risk, and asset-seeking strategies, and linkage programmes are becoming integral elements in many MNCs' corporate social responsibility (CSR) activities. At the same time, local African enterprises are eager to, and increasingly capable of, linking up to the foreign investors in order to expand their activities and acquire technology, skills and market access. The changing strategies of MNCs and the improving capabilities of African enterprises offer new opportunities for governments and donors to mobilize extractive FDI for development goals. This paper seeks to take stock of what we know about the state of and driving forces of linkage formation in South Sahel Africa extractives based on a review of the extant literature. The paper argues that while MNCs and local enterprises by themselves will indeed produce linkages, the scope, depth and development impacts of linkages eventually depend on government intervention. Resource-rich African countries' governments are aware of this and linkage promotion is increasingly becoming a key element in their industrialization strategies. A main point of the paper is that the choice between different linkage policies and approaches should be informed by a firm understanding of the workings of the private sector as well as the political and institutional capacity of host governments to adopt and implement linkage policies and approaches.
  • Topic: Development, Economics, Markets, Foreign Aid, Foreign Direct Investment
  • Political Geography: Africa
  • Author: Lars Buur
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: This paper explores linkage creation in Mozambique related to mega-projects in natural resource extraction and development from a political economy perspective. It explores through a focus on linkage development related to extractive industries in Mozambique the 'best practice' attempts between commodity producers and local content providers. The paper argues that a relatively elaborate state organizational and institutional setup based on policies, strategies and units with funding tools has emerged over time in order to begin to reap the benefits of large-scale investments in the extractive sectors. However, despite the formal acknowledgement, very little has been achieved with regard to forward and backward linkages, state institutions are often despite the official government rhetoric of importance simply bypassed not only by foreign investors, but also by the political leadership.
  • Topic: Development, Economics, International Trade and Finance, Political Economy, Natural Resources, Foreign Direct Investment
  • Political Geography: Africa
  • Publication Date: 11-2014
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: It is necessary to rethink the assumptions and theory of change of Disarmament, Demobilization and Reintegration (DDR) programs in current situations of armed violence.
  • Topic: Conflict Resolution, Security, Political Violence, Arms Control and Proliferation, Development, War, Armed Struggle
  • Author: Esbern Friis-Hansen
  • Publication Date: 01-2014
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: Social accountability as a tool for development planning is gaining foothold in international donor circles. It is concerned with the responsibility and responsiveness of state authorities, as well as the ability of citizens to make claims and hold those who exercise power to account for their actions.
  • Topic: Development, Economics, Foreign Aid, Foreign Direct Investment
  • Political Geography: Africa
  • Author: Christel Vincentz Rasmussen
  • Publication Date: 08-2013
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The EU is currently working at defining a comprehensive approach linking development and other instruments in external action. The Lisbon Treaty has contributed to a reorganisation of the institutions in Brussels, affecting crisis management structures and the organisation of external relations. Comprehensive approaches are not new in the EU system, in particular an integrated approach for conflict prevention and a concept for civil–military coordination were developed in the 2000s. However, a forthcoming communication on a comprehensive approach in external action constitutes an occasion to clarify and operationalise the approach in a new, post-Lisbon, institutional setting as well as consolidating the formal EU commitment to working comprehensively.
  • Topic: Conflict Resolution, Conflict Prevention, Security, Foreign Policy, Development, Human Rights, Humanitarian Aid, Foreign Aid
  • Political Geography: Europe, Brussels
  • Author: Birgitte Lind Petersen
  • Publication Date: 11-2013
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: The need to support central state institutions in fragile situations by prioritising capacity development has recently been elevated to a shared global concern as a result of the New Deal developed through the forum of the International Dialogue for Peacebuilding and Statebuilding. Peacebuilding and statebuilding are perceived as the most important aims of aid, and capacity development is central to achieving these. The emphasis on a country-led process indicates the need to develop capacities to lead such processes. Also, the commitment to joint development of a plan, support to political dialogue and leadership, transparency, risk sharing, strengthening of country systems along with the strengthening of capacities, all depend on or encompass strong elements of capacity development. This policy brief elaborates some major issues to be considered by donors supporting capacity development of central state institutions in fragile situations.
  • Topic: Conflict Resolution, Security, Democratization, Development, Fragile/Failed State
  • Author: Ole Therkildsen, Lars Buur, Anne Mette Kjær, Michael W. Hansen
  • Publication Date: 12-2013
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: This brief explores the opportunities offered by the new boom in natural resource extraction, and focuses on how foreign direct investment (FDI) by extractive multinational corporations (MNCs) can be harnessed for industrial development purposes. The brief argues that industrial policies are needed in order to unleash the development potentials provided by FDI in extractives.
  • Topic: Development, Industrial Policy, Natural Resources, Foreign Aid
  • Author: Jakob Vestergaard, Robert Hunter Wade
  • Publication Date: 12-2013
  • Content Type: Policy Brief
  • Institution: Danish Institute for International Studies
  • Abstract: More than three years after the International Monetary Fund (IMF)'s governing body agreed to reform the organization's governance so as to better reflect the increasing economic weight of dynamic emerging market economies in the world economy, only microscopic changes have been made. Emerging market and developing countries (EMDCs) have become increasingly frustrated with Western states for clinging to their inherited power, in the IMF and other important international economic governance organizations. The emerging cooperation among the BRICS (Brazil, Russia, India, China, South Africa) – as seen in the advanced-stage negotiations to establish a Development Bank and a Contingent Reserve Arrangement – sends a “wake up and smell the coffee” call to the West, and the latter will carry a heavy responsibility for eroding global multilateral governance if it continues to drag its heels on the needed adjustments.
  • Topic: Development, Economics, Emerging Markets, International Monetary Fund, Governance, Reform
  • Political Geography: Russia, China, India, South Africa, Brazil
  • Author: Fred Muhumuza, Anne Mette Kjær, Mesharch Katusiimeh, Tom Mwebaze
  • Publication Date: 02-2012
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: This paper explains the differences in ruling elite support for the fisheries and dairy sectors in Uganda. Although production in Uganda has not generally been promoted in any sustained way, ruling elites have to varying degrees supported the dairy and fisheries sectors. The paper shows that the ruling elite initially supported the fishing industry because of industry pressure. They have failed to enforce fisheries management because there are big political costs associated with such enforcement. The dairy sector in the southwestern milk region was initially supported because the ruling elite wanted to build a coalition of support in this region. Coming from the region himself, the president had a keen interest in dairy cattle. The sector was subsequently regulated because the biggest processor put pressure on the ruling elite to do so. Even when the ruling coalition is fragmented, promoting production is possible if there is strong industry pressure and when the initiatives to promote the sector are also seen to help build or maintain the ruling coalition.
  • Topic: Development, Economics, Industrial Policy, Poverty, Social Stratification
  • Political Geography: Uganda, Africa