Akwiri, Joseph. “Kenya’s First Crude Oil Export Sparks Demands over Revenue Sharing.” Reuters, Thomson Reuters, 26 September 2020 www.reuters.com/article/us-kenya-oil/kenyas-first-crude-oil-export-sparks-demands-over-revenue-sharing-idUSKCN1VG1FQ

 

Kenya began exporting crude oil after the discovery of oil deposits in the impoverished region of Turkana. Although it will be some time before large scale commercial production happens, the export marks the start of a new era for the residents of Turkana, and to some degree, the whole of Kenya. The President signed a law to regulate oil production and provide a framework for how the revenue will be split between the local communities, the Kenyan federal government, and the companies drilling this oil. International corporations that are based in other countries are the ones producing this oil, but say that this will create many jobs across Kenya going forward. The region is incredibly poor, and local leaders made powerful speeches to ask the government to follow its promises about payment.  

 

This story is one that is being told across the developing world. Many pre-industrialized countries are sitting on large amounts of natural resources that are incredibly economically profitable. Africa, for example, is incredibly rich in minerals. But with billions of dollars worth of resources in developing countries, it remains to be seen how much of this profit will go to the local communities. It’s important that these gains are shared in ways that can help the people whose lands these resources are found on. It shows how the use of the environment can be a catalyst for economic growth, which is especially beneficial for impoverished regions. But it also raises the question: how do we weigh environmental protection with developing countries’ ability to grow their economy? Would it be right for the international community to place a moratorium on fossil fuel extraction at the expense of developing nation’s economies? Rising emissions are inherent in the “T-shirt phase” of economic development, which is key for these countries to become industrialized and reap the associated benefits. While I think the demonization of fossil fuels is largely justified given the trends we’ve seen with climate change, it’s important to see the nuance. These resources can really grow the economy, which for citizens of developing countries means much more than the abstract yearly figure I associate with economic performance. I think that protecting the environment is really important, but so is ameliorating the extreme poverty that 36% of the world lives in. Luckily, it’s not an either-or choice. It’s just about finding the right policy balance.