Title:
Political Economy Analysis of the Mining Sector, Burkina Faso
Political Economy Analysis of the Mining Sector, Burkina Faso
Start Date:
January 2011
January 2011
Completion Date:
March 2011
March 2011
Client(s):
World Bank
World Bank
Funder(s):
World Bank
World Bank
Location:
Burkina Faso, Western Africa
Burkina Faso, Western Africa
Key Contact:
Mateo Cabello
Mateo Cabello
Summary:
The aim of this project was to improve the World Bank’s understanding of the key stakeholders, relations and interests characterizing the mining sector in Burkina Faso, using Political Economy Analysis (PEA) methodology. The ultimate objective of the project was facilitating World Bank’s informed decision-making regarding its support to the development of the mining sector in Burkina.
The PEA methodology developed by OPM aims to map actors’ motivations and their relations – both to each other and to the project, and identify risks and opportunities that these present. They also established detailed information on the intricate workings of the local, national, regional and global economic processes directly or indirectly affecting the project. In addition to that, the OPM team assessed the institutional framework regulating mining activity, including both formal (laws, regulations, institutional mandates) and informal institutions (social norms, de facto practices), that shape the behaviour, interactions, incentive and power of the stakeholders in the sector
In particular, five areas of mining activity were the subject of special interest:
• Access to resources
• Monitoring of operations
• Collection of taxes and royalties
• Revenue management and allocation
• Use of revenues for sustainable development purposes
In addition to the findings and suggestions for each of these areas, one of the principal conclusions of the PEA is that there is a need to increase political inclusiveness as part of the governance structure of the mining sector in Burkina Faso to make the state more accountable to society and orient mining rent allocation toward collective welfare as opposed to private gain.
The aim of this project was to improve the World Bank’s understanding of the key stakeholders, relations and interests characterizing the mining sector in Burkina Faso, using Political Economy Analysis (PEA) methodology. The ultimate objective of the project was facilitating World Bank’s informed decision-making regarding its support to the development of the mining sector in Burkina.
The PEA methodology developed by OPM aims to map actors’ motivations and their relations – both to each other and to the project, and identify risks and opportunities that these present. They also established detailed information on the intricate workings of the local, national, regional and global economic processes directly or indirectly affecting the project. In addition to that, the OPM team assessed the institutional framework regulating mining activity, including both formal (laws, regulations, institutional mandates) and informal institutions (social norms, de facto practices), that shape the behaviour, interactions, incentive and power of the stakeholders in the sector
In particular, five areas of mining activity were the subject of special interest:
• Access to resources
• Monitoring of operations
• Collection of taxes and royalties
• Revenue management and allocation
• Use of revenues for sustainable development purposes
In addition to the findings and suggestions for each of these areas, one of the principal conclusions of the PEA is that there is a need to increase political inclusiveness as part of the governance structure of the mining sector in Burkina Faso to make the state more accountable to society and orient mining rent allocation toward collective welfare as opposed to private gain.