From poverty to power - Oxfam-Québec

2 POWER AND POLITICS I STEAL, THEREFORE I AMused it to build up a ‘Petroleum Fund’ to provide long-term financingfor its welfare state even after the oil runs out. In contrast, Bolivia,which has suffered from the ‘curse of wealth’ for 400 years, 123 wascharging just 18 per cent tax on its oil and gas when in 2003 popularunrest prompted changes of government and a new tax level of 50 percent. Bolivia’s new leaders subsequently turned to Norway for advice,and the two governments signed a co-operation agreement in 2007 tostrengthen public institutions in the energy sector.Strong citizens’ organisations too can play a fundamental role.The Extractive Industries Transparency Initiative – a global effort torequire oil and gas companies to publish what they pay to governments,and for governments to disclose what they receive 124 – convincedNigeria to sign on, leading to the country’s first independent auditsof oil and gas revenues, which recovered an extra $1bn in tax revenue. 125Such transparency enables civil society watchdog organisations totrack revenue trails, reducing the opportunity for corruption.Some of the best results in anti-corruption efforts have come fromactive citizens holding their governments to account. In India, theRight to Information movement has scored some notable successes.In Chile, groups monitor party political funding; in Malawi, citizens’groups tour schools, making sure that textbooks paid for by foreignaid actually arrive. In Uganda, a public information campaign oneducation spending galvanised citizens’ scrutiny of governmentfinances and substantially increased the amount of money reachingschools, 126 and an anti-corruption group named and shamed a corruptofficial who had pocketed £15,000 earmarked for a road upgrade. Hewas arrested and forced to hand back the money. On a larger scale,bilateral aid is being used to strengthen state institutions that canaddress corruption, such as the police and the judiciary.Corruption is not the central issue in development: corrupt countriescan still prosper, as the history of Northern countries shows. Butcorruption undoubtedly squanders resources and makes it harderto build trust and dialogue between citizens and states. Conversely,attacking corruption, whether by encouraging citizen watchdogs orimproving the wages and conditions of state employees, or simply byenforcing the rule of law without favour,can strengthen the combinationof active citizens and effective states that lies at the heart of development.89