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Direct citizen
participation in management of oil resources
Azerbaijan may fall victim of the "resource curse", i.e.
"inverse relationship between high natural resource dependence and
economic growth rates". However, transparent and accountable
governance, particularly in relation to management of oil resources,
can help avoiding
the "resource curse".
Attempts towards increasing transparency and accountability in
management of oil resources in Azerbaijan have focused predominantly on
diclosing information on oil revenues. Concept of transparency,
however, shall be distinguished from that of
informed public participation. "Transparency is a necessary but not
sufficient component of informed public participation in democracy. To
have active voice, the public, or at least a representative body of the
public, needs to have a legitimate and formalised role overseeing and
interacting with industry and government".
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Policy Options
Three policy options for direct public participation in
management of oil resources were identified through literature
review and in-country discussion with experts:
- Dispensing oil revenues directly to citizen in form
of cash payment
- Fiscal decentralisation of oil revenues
- Public hearing on oil revenues and expenditure
All three options were evaluated against four criteria:
- Allowing for direct citizen participation in
decision-making
- Promoting decision-makers' accountability to citizen
- Political feasibility
- Technical capacity required for implementation of
policy alternative
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