IPI Executive Director Alison Bethel McKenzie opened the first of two sessions dedicated to oil wealth and poverty at IPI’s Oil Gas & Media Conference in Baku, Azerbaijan on Wednesday by noting that in many oil-rich countries populations remain devastatingly poor.
“Why is no one reporting on what happens to the oil wealth?” Bethel McKenzie asked.
The panelists were:
Tom Burgis, reporter, Financial Times, UK
Joe Nam, contributing writer, New Vision, Uganda
Aida Sultanova, editor-in-chief, Azerpress, Azerbaijan
Burgis noted the damaging effect oil industries have on other economic sectors in West Africa, where he was a correspondent for a number of years.
Nam spoke of high expectations of what oil wealth should bring, “coupled with an inability of governments to deliver on the promises of building health sectors improving infrastructure etc”.
He said: “The general condition of people remains as it is.” He added: “The gap between rich and poor is widening.”
Sultanova noted that civil society felt a need to be more involved in the monitoring of the use of oil wealth in large-scale development projects.
Curtis Williams, a Trinidad-based energy reporter, suggested from the floor that without wise investments there is no way an oil-rich country can “move the situation” forward.
Nam responded by noting that some “undemocratic” countries had – despite the limitations of their political systems – delivered on pledges to improve the lot of ordinary citizens through the use of oil wealth.
“The trick,” Burgis said, is to “neutralize the damage of oil money”.
Following a lunch break, the panel continued, in a part two.
Moderated by Ochieng Rapuro, managing editor of the Nation Media Group, Kenya, the second panel on the topic of oil wealth included:
Shahmar Movsumov, executive director, State Oil Fund of the Republic of Azerbaijan
Artem Shevchenko, anchorman, “Exclamation Mark”, TVi, Ukraine
Henry C. Uzor, Delta Broadcasting Service, DBS, Nigeria
Johnny West, founder, OpenOil, Germany
According to Movsumov, the State Oil Fund protects market stability, is designed to set aside funds for future generations, and facilitates spending on health, education and infrastructure projects. Its budget is approved by Parliament.
On the topic of energy subsidies, West noted that in Egypt for example 90% of energy subsidies go to 20% of the population and are therefore “anti-poor”.
The two-day IPI conference is focusing on the link between the oil and gas sector, and the media. It was organised on the ground by IPI’s Azerbaijan National Committee and its Chairman, IPI Board Member Umud Mirzayev.
Topics discussed include press freedom, access to information, and covering corruption. Although the conference is international in scope attention has at times focused on criticism of Azerbaijan’s press freedom record. IPI is using the conference as an opportunity to continue to advocate for press freedom improvements in the country.
