National/Local Content Development seen from a donor perspective

National/Local Content Development seen from a donor perspective Svein Olav Svoldal, adviser Section for Private Sector Development Norwegian Agency for Development Cooperation (Norad) 02/06/20 20 Side/Page 2 02/06/20 20 Side/Page 3

02/06/20 20 Side/Page 4 02/06/20 20 Side/Page 5 Converting resource wealth into human development is challenging! Human Development Index HDI HDI ranking 1

64 85 136 153 Income GNI per capita in PPP (constant $) 48 688 13 676 10 152 21 715

2 102 Health Life expectancy at birth (years) 81,3 74,5 73,8 51,4 52,3 Health Under-five mortality (per 1000) 3

6 19 121 143 Education Mean years of schooling (years) 12,6 9,5 7,2 5,4

5,2 Education Public exp. on education (% of GDP) 7,3 5,8 5,7 0,7 n.a. 13,6 10,3 5,7

44,7 35,6 Resource rent in 2011 (% of GDP) 02/06/20 20 Side/Page 6 02/06/20 20 Side/Page 7 Local Content Development

The extractive industry may generate benefits to the national economy beyond its direct contribution through links with other sectors. Using the extractive industry as a mechanism to enhance: Job creation Knowledge & technology transfer Local based private sector development National income mobilisation 02/06/20 20 Side/Page 8 Donors Shared Extractive

industrys responsibilities Government responsibilities 1. Developed a skilled workforce 2. Build national competitive suppliers 3. Develop a competitive local infrastructure 02/06/20 20 Side/Page 9 ? Is local content development a sufficient priority area for the extractive industry to get a social licence to operate?

How does one make sure the relevant measures are initiated at the right time by and the relevant stakeholders? Which value added may different stakeholders have at the early stage and in general? How could LCP possibly trigger impact beyond the traditional supply chain in order to stimulate broad-based economic development? 02/06/20 20 Side/Page 10

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