Gov’t tasked to address loopholes in oil management

A latest UN report says government can raise an extra million dollars each year to fund education if it plugs the loopholes in the management of the country’s natural resources, particularly oil.

The Education for All Global Monitoring Report was based on a study conducted by UNESCO in 17 countries including Ghana.

The report points to mismanagement of revenue and poorly negotiated contracts as central reasons why government is failing to maximise the benefits accruing from the country’s resources.

The report argues that by maximizing and transparently managing the revenues from the extractive industry, the 17 focus countries could raise an extra $5 billion in funding for education every year.

That figure is about two and a half times the amount the countries received in aid to education in 2010.

The study entitled: Turning the Resource Curse into a Blessing for Education, finds that revenue from natural resources could enable countries like Ghana to reach over 11 million out-of-school children.

Pauline Rose, Director of the Global Monitoring Report, says many countries have mismanaged the income from their natural resources. They have also poorly negotiated with extractive companies, or have made misguided spending choices.

The reports recommends maximising revenues to improve social services, managing and monitoring the use of revenues from natural resources, and channeling at least 20 per cent of natural resource revenue into education.

Other countries studied include Burkina Faso, Chad, Cameroon and Zambia.