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Project

Implementation of Local Content Policies in Africa: An analysis of Uganda's Oil and Gas local content policy

To promote local participation in resource-based industries, countries have introduced local content policies (LCPs). This policy is particularly popular in oil-producing countries. In most cases, the rationale for LCPs entails the promotion of economic growth, development, and diversification via ensuring that local people benefit from and take part in oil and gas resources (Kalyuzhnova et al., 2016; Acheampong, et al. 2016; Adedeji, et al., 2016). Given the positive outcome of LCPs in terms of creating employment and benefiting local enterprises (LEs) in a country like Angola and the less successful outcomes in Nigeria and Ghana, this research project sets out to investigate the effects of the Ugandan implementation model on the behavior of private actors. The discovery of oil in Uganda and the country’s initiation of LCPs have indeed attracted some level of academic interests (see for instance, Hansen, et al., 2016; Twebaze ,2013; Rubondo, 2014; Okuku, 2015; Heum et al., 2011; Magelah, 2014; World Bank, 2015; Hansen, et al. 2016; Ovadia 2016), but interestingly no empirical study has been made, to the best of this researchers knowledge, on the Ugandan LCP implementation model and the underlying factors that explain its effects on the operational behavior of private actors. The need to investigate this lacuna becomes relevant when it is appreciated that the initiation of public policies to address social, political and economic problems does not necessarily presuppose that seamless implementation will follow (Hill & Hupe, 2002; Mthethwa, 2012). Yet, the participation of LEs depend on LCP-implementation approaches – i.e. whether top-down or bottom-up – adopted by policymakers, bureaucrats, and other critical actors (Mizrahi, 2004; Cohen, 1993; Pülzl & Treib, 2007; Heum, et al., 2011; Pal, 1997). Many variables explain the implementation of public policies (Sabatier, 1986; O'Toole, 1986; Hill & Hupe, 2002), however, given the nature of LCP implementation, this study adopts the inter-institutional coordination, collaboration, compliance, commitment and ability of government institutions and private actors, and the nature of LCPs (see, Sabatier, 1980; Friedman, 2006; Pal, 1997; Mastenbroek, 2003; Kalyuzhnova et al., 2016; Ngoasong, 2014) as the explanatory (independent) variables to study LCP effects on the operational behaviour of LEs and IOCs in Uganda’s OGS (dependent variable). The current study adopts a qualitative approach composed of two complementary elements: document analysis and semi-structured interviews to gather the data from organizations and individuals engaged in policy implementation and the upstream activities (providing both direct and indirect services), including food supply, transportation and logistics, facility management, forwarding and clearing, and civil works in the Ugandan oil and gas industry.

Date:5 Jan 2016 →  11 May 2021
Keywords:Local Content Policy, Oil and Gas Governance
Disciplines:Other economics and business, Citizenship, immigration and political inequality, International and comparative politics, Multilevel governance, National politics, Political behaviour, Political organisations and institutions, Political theory and methodology, Public administration, Other political science
Project type:PhD project