Labour And Employment Creation With African Resource Development

Abstract

Natural resources are an assured source of government revenue, but this does
not always translate into more jobs, better productivity or an increased demand
for that country. Traditionally, the role of government in a resource-rich country
has always been to act in the best interests of its citizens. In the case of
natural resource-rich nations, this role also includes ensuring that jobs in the
extractive sector are safe – both in the physical and financial sense. In such
competitive environments, the private sector also has a fiduciary responsibility
to ensure that all employees are fairly treated. However, it is evident that
almost all African nations that are rich in resources are affected by lack of
human development. This article examines the current state of affairs in the
resource-rich African nations and their impact on human development. It
focuses on how these resource-dependent economies are experiencing economic
growth and why this growth does not directly translate into higher and better
employment for the local populations. The article examines growth and human
development from the perspectives of both the private- and public-sector actors.
It recommends that private actors should have a complementary approach,
through foreign direct investors or other modes, to the long-term policies and
plans set out by the state. This approach would allow for successful intersectoral linkages and community development through higher job creation.
It argues that the state is responsible for managing these natural resources
and highlights the role of governance in this management. Governance issues,
challenges, such as developmental gains, job creation, transparency and
accountability are all addressed in the article. Finally, the article strongly
recommends developing both human and institutional capital and regulating
production.